Esurance plans to stop writing new business
In 2019, Allstate outlined its “Transformative Growth Plan” that entails expanding customer access, improving customer value propositions, and increasing investment in growth and technology. As part of this plan, it was announced that the Esurance brand will be phased out in 2020.
While it took longer than anticipated, Esurance intends to cease writing new business based on insurance filing data. Below is a snippet from a filing submitted in North Carolina.
“On behalf of Esurance Insurance Company (“Esurance”), we are writing to inform the Department that Esurance intends to cease writing new business for auto insurance in North Carolina, effective December 20, 2022.
In late 2019, Allstate announced its intentions to phase out the Esurance product suite to reduce operational complexity, lower operational expenses, and repurpose Esurance resources to other customer-focused initiatives. Since then, Allstate has enhanced its direct sales capabilities to the point where Esurance products can be sunset. At this time, we do not anticipate impacts to our agents and employees.
The first phase of our efforts is to cease writing new business, with the subsequent focus being to provide all Esurance customers with an offer to purchase a policy through our Allstate or National General brands. We will follow up with you once our execution plan and timelines solidify for the book migration.”
The company has submitted this request in eleven states so far including Texas, North Carolina, Georgia, North Dakota, Maine, South Dakota, Michigan, Connecticut, Iowa, Kansas, and Rhode Island. In total, Esurance has about 192k policies in these states – mainly auto.