In the third quarter of 2023, Hagerty, the largest insurer of collectible cars in the US, paid its policyholders 41 cents in claims for every dollar in premium it earned. In 2022, the loss ratio was a little higher at 45% (due to claims from Hurricane Ian and modest adverse reserve development), but still a world apart from the 79.8% recorded by the auto insurance market as a whole in that year. 13 Yet clearly Hagerty’s policyholders did not hold the company’s parsimony against it. Year after year, Hagerty has achieved net promoter score (NPS) figures that other auto insurers envy. In 2022, its NPS was 83 (see chart below). Hagerty: a powerful auto insurance brand with multiple touchpoints
Top Auto Insurers by Net Promoter Score
Hagerty, 2022** (83)
80
79
73
0 10 20 30 40 50 60 70
69
61
Industry average* (44)
55
50
49
47
45
44
**Self-Reported *According to CX software company, NICE.
Source: https://clearsurance.com/blog/nps-insurance-companies. Figures based on more than 125,000 insurance carrier reviews conducted since 2017.
Nor has Hagerty’s underwriting profitability come at the expense of growth. The company recorded a compound annual growth rate (CAGR) of 13.4% between 2010 and 2022, while the country’s top 100 auto insurers grew at a mere 4.3% CAGR over the same period. In 2022, Hagerty underwrote $777 million in premium, making it the second largest MGA not owned by an insurance company in the US. Customer retention has held steady at around 90% over the past decade: in 2022, it was 88%.
13. US private auto insurers report historically bad underwriting results in 2022, S&P Global Market Intelligence, May 8, 2023
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