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What do you know about Erie Insurance Company?? I live in Wisconsin and I have been talking with many Condominium Board members. Insurance rates have increased dramatically and many carriers, like Frankenmuth, have pulled out altogether! State Farm insurance has the lowest rates BY FAR, almost ridiculously low but they have stopped writing new business effective June 1st.
So with so many companies raising rates and leaving the market, all of a sudden this company - Erie- comes in and is writing new business around the same premium, or a little higher, than State Farm!! It seems odd with everyone losing money, reinsurance costs doubling and tripling, investment income down and loss frequency increasing that Erie would want to come in to the market! Especially with rates about 1/3rd of the rest of the industry??
I know you don't believe in Financial Ratings but what is there "cash situation"? Do they have strong reserves? Do they pay there claims? Do they have a history of complaints regarding claims? What will they do if an Association has 2 or 3 losses, will they cancel or dramatically raise rates?
Since I provide financial and other advise to Associations what can I tell them to expect from this newcomer?? Any information you can provide for me will be greatly appreciated! Thank you!!