State Farm Suffers $7B Auto Underwriting Loss, Profits Decline 94%

By Lisa Du | March 1, 2017

  • March 3, 2017 at 6:19 pm
    Jane King says:
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    You people pushed for illegal immigrants a drivers license and insurance! What in the world do you think is going to happen? If you can’t read the signs, don’t know the rules and you are from a third world nation? You will have a boost in accidents! Many of those accidents will be designed to get free money by fraud. This would be like waving a golden carrot in front of a poverty stricken bunny rabbit. They will get paid and go back to their country and share the profits.. Meanwhile, you people who pushed this on the state are now shifting the cost to consumers!

  • March 15, 2017 at 4:02 pm
    Ralph Garcia says:
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    Maybe if State Farm had not tried to automate things after the fact (following all the leaders in the industry) and consolidate all of their offices into a four “Hubs” things may have been different.
    They also have a new way of processing work, where each person learns just one part of a job and then passes it on to the next guy. No one knows the workflow from beginning to end like they used to.
    They’re also letting their agents get away with fraud, like letting them claim that one person in a household has 20 others that are related to them and all rated on the 20 cars that the one person owns and garages at that locale. Since no on knows how the system works, they just push the “enter” key to move the paperwork along, that way they get their “numbers” that the bean counters are expecting from them.
    No wonder State Farm has such a huge loss, they’re letting the bean counters run the company, rather than people who know how to run an auto insurance company.



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