The issues which resulted in USAA’s troubles are numerous. But there is one common element. A board of directors made up of FLAG ( Admirals, Generals) officers with no insurance experience. And management with dreams of making their “mark”. Just look at some of the mistakes. The theme park and non insurance activities (stocks, banking, real estate,credit card, etc). Remember the stories about the problems at the bank?
USAA was created for one reason. To provide access to insurance (auto primarily) for officers. The expansion of eligibility to all ranks and to anyone remotely related to a former service member was an effort to expand the the base of potential customers. Right decision? Yes to some extent, but not without some boundaries.
USAA must return to their basic reason for existence.
I was a member for 35+ years. Left them for another carrier where I had a dedicated local agent. Got tired of the annual increases in home coverage and no personal service. Never once did I talk to the same rep twice.
Diversification is a good, not bad, thing. Example: Jane Berkshire Hathaway.
Non-insurance board members is a very common thing for insurance and non-insurance organization boards. In fact, it’s desirable to have such… diversity…. right?
Expansion of a portfolio for risk diversification, thus reduction, has been followed since Day One, in crude insurance arrangements, right up to today.
USAA wouldn’t be making a radical move of shrinking its portfolio as a follow up to streamlining for expense reduction and efficiency improvement. Rather, they will likely be re-aligning internally for greater efficiency.
I see great turnover in ALL customer service centers I’ve called or written. Why would workers remain in such near-minimum-wage jobs long-term?
Inflation is a commonly observed phenomena. It impacts insurance prices through the underlying cost increases. See Verisk/ ISO, III, NCCI, AIPSO, etc. for more information on this matter. See an actuary or claim adjuster for more information on leveraged inflation claim costs for excess coverages.
By any definition, a theme park is not risk diversification. It was ego driven and lost money big time. My reference to “increases in home coverage” were not premium related. I was referring to the ridiculous increases in coverage amounts. USAA is creating a real moral hazard with the required increases.
The issues which resulted in USAA’s troubles are numerous. But there is one common element. A board of directors made up of FLAG ( Admirals, Generals) officers with no insurance experience. And management with dreams of making their “mark”. Just look at some of the mistakes. The theme park and non insurance activities (stocks, banking, real estate,credit card, etc). Remember the stories about the problems at the bank?
USAA was created for one reason. To provide access to insurance (auto primarily) for officers. The expansion of eligibility to all ranks and to anyone remotely related to a former service member was an effort to expand the the base of potential customers. Right decision? Yes to some extent, but not without some boundaries.
USAA must return to their basic reason for existence.
I was a member for 35+ years. Left them for another carrier where I had a dedicated local agent. Got tired of the annual increases in home coverage and no personal service. Never once did I talk to the same rep twice.
Diversification is a good, not bad, thing. Example: Jane Berkshire Hathaway.
Non-insurance board members is a very common thing for insurance and non-insurance organization boards. In fact, it’s desirable to have such… diversity…. right?
Expansion of a portfolio for risk diversification, thus reduction, has been followed since Day One, in crude insurance arrangements, right up to today.
USAA wouldn’t be making a radical move of shrinking its portfolio as a follow up to streamlining for expense reduction and efficiency improvement. Rather, they will likely be re-aligning internally for greater efficiency.
I see great turnover in ALL customer service centers I’ve called or written. Why would workers remain in such near-minimum-wage jobs long-term?
Inflation is a commonly observed phenomena. It impacts insurance prices through the underlying cost increases. See Verisk/ ISO, III, NCCI, AIPSO, etc. for more information on this matter. See an actuary or claim adjuster for more information on leveraged inflation claim costs for excess coverages.
By any definition, a theme park is not risk diversification. It was ego driven and lost money big time. My reference to “increases in home coverage” were not premium related. I was referring to the ridiculous increases in coverage amounts. USAA is creating a real moral hazard with the required increases.
Hush! We’re having big trouble since the top guy went wokehole. Walt is probably spinning in his grave now.
Just ridiculous to blame USAA’s current issues on a theme park that they sold 26 years ago….