Automotive Program Specialists

DMI Insurance Services, Inc.
Automotive Program Specialists
2016 was a challenging year for the Independent Auto Dealers insurance market.  Carriers continued to exit this class of business and those remaining took significant rate increases.  Underwriting tightened up with property and physical damage tools that will hopefully mitigate some of the previous years’ weather losses the industry has experienced.   Even with all of the turmoil going on, D.M.I. managed to achieve an 84% renewal retention of the quotes offered.  This is due to the strength of our producers.  We appreciate your business and hope 2017 sees significant growth for all of us and a return to profitability for the carriers.                                              
                                        - Susan Matlock
Auto Liability Market Observations

AIG/Lexington

  • Observed Increases in both frequency and severity
  • 285M reserve strengthening in Q2 2015
  • Increasing rates 20% - 80%

 Zurich

  • 300M reserve strengthening in Q3 2015
  • Increasing rates

 Cincinnati

  • Reserve strengthening in Q1 2016

CNA

  • Paring back auto

Hanover

  • Taking rate and non-rate actions to improve profitability

 Berkley

  • “Commercial auto is very challenged."

State Auto

  • Taking corrective actions after disappointing 2015

 Lancer

  • During Q3 2016, AM Best lowered outlook to negative due to adverse prior years development in commercial auto

 Selective

  • Hiking rates, taking underwriting actions and limiting new business

 Allstate, Geico

  • Increasing rates due to loss ratio deterioration

 The Hartford

  • Underwriting losses leading to rate increases and underwriting changes
  • “Disappointed we didn’t recognize earlier the magnitude of the changing trends.”

 MarketScout

  • Expects auto rates to continue increasing, even as other lines see rate decreases

 Fitch

  • Commercial Auto remains a loser, with 2015 producing the 5th straight year of underwriting losses
  • “Poor performance is a reflection of previous overly aggressive pricing and a recent extended period of heightened claims severity.”

 SNL

  • Q2 2016 – loss ratios rose to highest levels in 15 years
Get to know Susan
What is your position at DMI:
President
 
When did you begin working at DMI: 
February 1982

What is your favorite part about DMI:
The comradery our staff has.  Many of the staff have been here 15+ years. We've known each other such a long time.

What do you find challenging at DMI:
The constant change in market conditions.

Personal Summary:
I am married with 4 children, ages 36, 34 27 & 23. My husband and I were high school sweethearts. We enjoy traveling, golfing, and sailing.

What is your favorite thing to do on the weekend:
Golfing with my husband and friends.

What is your favorite quote:
"Work hard, play harder."
D.M.I. Insurance Services, Inc. | 1-877-2525 | www.dmi-insurance.com