GEICO and Berkshire Hathaway are a unique beast in the industry. Their ability to gainfully employee capital is somewhat unmatched. Historically many companies managed to eek out an underwriting profit but distracted driving and bodily injury changed the game for many auto underwriters over the years following the iPhone's debut. Just in the last year or two or so years have some companies returned to modest profitability in this line. If you are not Warren Buffett your need to generate an underwriting profit is more or less essential. Weak returns on low risk investments vehicles which have performed worse in a post crash world make it even harder for insurance companies in general and make underwriting profit even more essential.
If you are a multi-line writer at this point you are well aware of the impact that autonomous, vehicle services and mobility services will have on auto. At this point its slightly better than a loss leader for other more profitable lines.
If you are a multi-line writer at this point you are well aware of the impact that autonomous, vehicle services and mobility services will have on auto. At this point its slightly better than a loss leader for other more profitable lines.