Originally Posted by Dadicool59
An insurance company will usually only exit any particular class of business for one reason.
If this is a "mutual" member owned organisation you should have access to their annual report and this may provide the information that probably supports their decision.
It probably wont be complex, if they were making money in this class, they wouldnt exit.
Motorcycle insurance is a difficult class that has become even harder with the high number of fairinged bikes that can easily become total losses due to minor accidents.
They are also relatively easy to steal and in challenging economic times like you are currently in, theft fraud is a big issue by owners who cant make repayments.
Insurance is about critical mass and if you dont have it you will probably get burned.
Many insurance companies will write motorcycles as an accommodation benefit for existing policy holders but their premiums will usually be uncompetitive when compared to the specialist motorcycle insurers who do have the critical mass to be able to properly analyse claims trends and cost data as well as having the buying power to minimise repair costs.
Its a shame if they were good but in these times its about survival.
I have asked for the documentation and board approval minutes. The only issue is that there has not been a 'statement' issued to the membership regarding this decision. So it may be something that someone decided to do without Board approval, maybe!
You're right if they were making a ton of money then they wouldn't quit. My problem is they are cheery picking the best coverage for them and not necessarily their members. If it is motorcycles today then it might be 'something' else tomorrow.
I have had great service with USAA for 34 years and if I paid a little more than the going rate then it is worth it to me. The keystone in my mind is how they treat claims. You may get cheaper insurance BUT do they pay off is the real issue. Having insurance that won't pay medical or replacement costs is really having no insurance at all.
USAA didn't use to be about critical mass because of the way it was founded. You stood on your own merit, the military way so to speak. It was founded by military officer for military officer only. In recent years the membership has expanded and I believe that is the crux of the problems. Insuring 18 year olds that only motorcycles insured with them, ie no houses, no money market, no autos, no nothing else, is just asking for high risk and claim losses.
USAA principles should punish those needing to be punished and not punish the entire group which they're doing. Again, it use to insure/consider individual members performance not groups.
I appreciate your point of view and incite