Mercury to Support Agents and Customers as
Tokio Marine America Transitions Out of the California Personal
Lines Market
LOS
ANGELES, May 9, 2024 /PRNewswire/ -- Mercury
Insurance (NYSE: MCY) is spearheading a plan to maintain
insurance availability and provide coverage for thousands of
California consumers. Tokio
Marine America (TMA) and Mercury
have closely cooperated to develop a plan to transition
customers of TMA and its subsidiary, Trans Pacific Insurance
Company (TPIC), to Mercury with assistance from a group of
California independent insurance
agents, and leadership from the California Department of
Insurance.
"Innovative solutions surface during challenging times," said
Gabriel Tirador, Chief Executive
Officer and Director of Mercury. "A diverse group of entities
worked together on this project with the common goal of providing
coverage for California insurance
consumers."
Tokio Marine America offers
personal lines insurance only in California, representing a small percentage of
the California personal lines
market. Given the small segment of personal lines business and cost
of updating its information technology systems, the company
announced in April 2023 that it
cannot sustainably support personal lines coverages and would be
exiting the personal lines market. The Department of Insurance
reviewed the proposal to transition customers to Mercury after
Tokio Marine announced its withdrawal from personal lines.
TMA's and TPIC's exit has no impact on any other Tokio
Marine Group company, and the company will continue writing
commercial coverage for California
businesses.
"We are pleased to have reached an agreement with Mercury
Insurance Group to support our personal lines agents and customers
during this transition period," said Daisuke Ugaeri, Chief
Executive Officer at Tokio Marine America. "Tokio Marine America
remains committed to commercial lines in California — and across the country — and
supporting our agents and customers with exceptional service
through this transition."
When TMA decided to exit its personal lines business in
California, they immediately began
exploring options to help affected customers and agents. The
details of the plan came together over the past several months
during a time when a number of insurance companies were either
exiting the California market or
pausing new business applications. Mercury never shut down new
business, however, becoming one of the few companies that continued
to support independent agents and California consumers.
"Tokio Marine America customers are similar to ours in terms of
their coverage needs and their insurance agent relationships," said
Brandt Minnich, Mercury's Vice
President and Chief Sales Development Officer. "Starting in
January 2024, we began working with
TMA to bring together a cohesive group of independent agents who
could facilitate the transfer of their policies to Mercury for
those customers who were interested, ensuring continuing
coverage."
The agent solution involved partnering with a team of existing
Mercury independent agents who also represented TMA, as well as
more than a dozen TMA agents who have been offered Mercury agent
appointments to help facilitate the transition.
Mercury's interest in the transition was based on more than just
a new business opportunity. "We believe very strongly in
California's future," said
Tirador. "The steps Commissioner Lara and the California Department
of Insurance are taking to modernize the insurance market through
the Commissioner's "Sustainable Insurance Strategy" will help
stabilize the market and create a transparent, sustainable model
that will benefit California
consumers."
About Tokio Marine America
Tokio Marine America (TMA) is the
marketing name for Tokio Marine America Insurance Company (TMAIC),
Trans Pacific Insurance Company (TPI), and TNUS Insurance Company
(TNUS). For over 100 years, TMA has offered comprehensive
commercial property and casualty insurance products to some of the
world's largest and most distinguished organizations in a variety
of industries in all 50 U.S. states, Puerto Rico, and the District of Columbia. With the highest
financial strength rating `A++' (Superior) by A.M. Best Company and
`A+' rating for counterparty credit and financial strength by
Standard & Poor's, TMA provides unique insurance and risk
management tools from experienced staff, and fair and timely claim
settlements from a skilled team of claim professionals. For more
information, please visit http://www.tmamerica.com
About Mercury Insurance
Mercury Insurance (NYSE: MCY) is a multiple-line insurance
carrier offering personal auto, homeowners, and renters insurance
directly to consumers and through a network of independent agents
in Arizona, California, Georgia, Illinois, Nevada, New
Jersey, New York,
Oklahoma, Texas and Virginia, as well as auto insurance in
Florida. Mercury also writes
business owners, business auto, landlord, commercial multi-peril
and mechanical protection insurance in various states.
Since 1962, Mercury has provided customers with tremendous value
for their insurance dollar by pairing ultra-competitive rates with
excellent customer service. Mercury has earned "A" ratings from
A.M. Best and Fitch, as well as "Best Auto Insurance Company"
designations from Forbes and Insure.com. For more information visit
www.MercuryInsurance.com or follow the company on Twitter or
Facebook.
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SOURCE Mercury Insurance