EMC Insurance is exiting the personal lines insurance business, which represents only about 10 percent of their total policies. Safeco Insurance, a Liberty Mutual Company, will be accepting the transfer of EMC personal lines policies from EMC-licensed agents, beginning in the first quarter of 2019.
The move follows a strategic decision by EMC to focus on its commercial, reinsurance and life insurance business across 43 states, which represent over 90 percent of current premiums.
EMC offered personal line policies in Alabama, Arizona, Arkansas, Colorado, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Minnesota, Missouri, Montana, Nebraska, New Hampshire, North Dakota, Ohio, Oklahoma, South Dakota, Tennessee, Wisconsin and Wyoming.
Donegal Mutual Insurance Company announced in September 2018 that it plans to transition personal lines policies to Safeco. Donegal is exiting the personal lines business in the states of Alabama, Maine, Nebraska, New Hampshire, N. Carolina, S. Carolina and S. Dakota. Donegal wrote $25.0 million of personal lines premiums in the seven states in 2017, according to news reports.
QBE North America entered into a similar agreement with Safeco Insurance in August 2018. Safeco acquired QBE’s personal insurance independent agency policies in 47 states, with a focus on personal auto and personal property insurance policies. QBE also plans to focus on commercial insurance.
EMC Insurance Companies is among the top 50 insurance organizations in the country based on net written premium, with more than 2,500 employees. Employers Mutual Casualty Company was organized in 1911 to write workers’ compensation protection in Iowa. Today, operating under the trade name EMC Insurance Companies, the company provides property and casualty insurance products and services throughout the United States and writes reinsurance contracts worldwide. EMC is licensed in all 50 states and the District of Columbia.
EMC business coverage includes property, liability (including employment practices liability), commercial auto, workers’ compensation, data compromise, crime, and errors and omissions (E&O). Additional service lines include surety bonds, fidelity bonds, excess & surplus lines, and third party claims administration.
Donegal Group Inc. is an insurance holding company that offers property and casualty insurance through its wholly owned insurance subsidiaries and through a pooling agreement with Donegal Mutual Insurance Company.
Donegal commercial lines include businessowner insurance (“BOP”), tradesman’s advantage contractors’ insurance, commercial package policy, commercial automobile, commercial liability umbrella, worker’s compensation, employment practices liability (EPLI), liquor liability (dram shop), contractor’s errors & omissions (E&O), commercial loss control services, commercial group programs, commercial premium audit services, and loss control training.
Panel Counsel Considerations for Defense Law Firms
Safeco panel counsel members will want to be alert to any potential increase in case loads, and may want to research what the implications are for their territory. Members of the QBE panel counsel program or the Donegal panel counsel program, particularly those with a caseload of personal auto or property damage claims, may want to start looking for new clients to replace the cases that will no longer be in the pipeline.
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This article is provided for educational purposes only. It is not to be interpreted as legal advice or an opinion in regard to any topic discussed. The article should not be used as a substitute for legal advice from a licensed attorney in your state. Every situation is different and circumstances vary widely depending on the governing state law, policy provisions, and related considerations.