Tag Archives: GEICO

Warren Buffett Realistic on Autonomous Cars Negative Impact on Auto Insurers

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With GEICO Insurance one of Berkshire Hathaway’s biggest assets and moneymakers, the impact of autonomous vehicles on insurance rates will play a big role on future profitability in the auto insurance sector.

Clearly, Warren Buffett is realistic that a world with safer cars will mean declining rates.

While noting that replacement parts of cars are far more expensive than years ago, ultimately Buffett sees a decline in rates due to fewer collisions.

“…A safer car is going to bring lower insurance rates,” Buffett said while appearing on CNBC’s Squawk Box the Monday after Berkshire’s annual meeting. “There’s one some– there’s– modest offset to that in that, in terms of collision activity– the damage is done to a car by in terms of a bumper or a side rearview mirror something. Costs far more now, it’s a much more complex product. So the damage per accident, not human damage, but physical damage to the car, that will probably go up substantially. But the number of accidents won’t– you won’t see widespread adoption unless they’re safer. And we want a safer car. So it’s net, it will be bad for the auto insurance industry over time if autonomous cars become a big part of the fleet.”

Buffett also noted that the exact timeframe that autonomous vehicles will have a big impact on rates is hard to know, as there will still be a lot of nonautonomous vehicles on the road for years to come.

“Well, it– we don’t know, I mean, what it’ll be. And you’ve got 260 million cars on the road. Let’s just say that 10% of the people took up– autonomous cars in a year. Now you’re talking about– a million eight outta the 18 million. And– there’s– a big life cycle to it and all that. But what does best for the consumer and is safer over time really will prevail– over time,” Buffett said.

Currently, GEICO insures more than 24 million vehicles in the United States.

© 2018 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

GEICO Adding More Than 1,400 Employees in Indianapolis

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Insurer GEICO plans to add more than 1,400 new associates–including hundreds of IT professionals–as the company grows its operations in Greater Indianapolis.

The company’s office, at 101 W. 103rd St. in Carmel, will nearly double in size after an expansion that will add an additional 104,000 square-feet.

With the larger space, GEICO Indianapolis will add IT and claims positions to its existing sales, service and emergency roadside operations.

The GEICO Greater Indianapolis office brought more than 250 jobs to the area when it opened in the summer of 2013. Over the years, the office has more than quadrupled its workforce to more than 1,100 associates to become one of the area’s largest employers.

“The support of this thriving community and our growing customer base in Indiana have made this expansion possible,” said Lona J. Montgomery, general manager of the Indianapolis office. “We are excited to bring on new associates to help us continue to offer excellent service to our customers across the state.”

Nearly 350 IT and claims positions will be added this year, with the others slated to be added over the next five years.

© 2018 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

GEICO in Major Hiring Spree in Virginia Beach

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Insurer GEICO is adding to its staff in Virginia Beach, Virginia, and expects to fill 500 positions in claims, sales, service, auto damage and the company’s management development programs.

The Berkshire Hathaway-owned company does not require applicants to have previous experience due to GEICO’s extensive training courses.

“One reason we were again named a ‘Best of the Beach’ employer in Hampton Roads is because of our commitment to helping associates develop long-term careers,” said John Pham, vice president of GEICO’s regional operations. “Our associates know we promote from within, which gives them a lot of chances for advancement. It’s not unusual for associates to earn two promotions within the first year of employment with us.”

Mark Boggs, a claims manager, can attest to that. “I started as a claims adjuster just three years ago. GEICO gives you the tools and support to be successful, and with consistent hard work and dedication, there’s really no limit to how fast you can move.”

John Pham added, “We know that many people come to GEICO for a job. They think they’ll stay a year or so. What we do is surprise them with a career. Many of our associates have 10- , 20-, and 30-year careers with GEICO, some even longer.”

© 2017 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

GEICO Lauded with Women Technologists Award

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GEICO, the nation’s second largest and fastest-growing auto insurer, recently earned the prestigious Top Companies for Women Technologists award.

The award recognizes companies committed to building workplaces where women in technology careers can thrive. This year, the presenting AnitaB.org organization evaluated dozens of U.S. companies representing 574,000 technologists across a variety of industries.

AnitaB.org evaluated nominees on the basis of representation, employee experience and programs and policies.

GEICO earned the highest total score for a company with a technical workforce between 1,000 and 10,000. AnitaB.org cited GEICO for a “corporate culture that revolves around promoting diversity and inclusion” and “creating several rotational programs for entry level technologists and management that provide ongoing training for continued professional growth.”

“GEICO has always made diversity a top priority by promoting an all-inclusive environment that emphasizes leadership, training and career-advancing roles for women in IT,” said Marie Motowylak, GEICO director of decision sciences and business transformation. Motowylak accepted the honor on behalf of GEICO and added, “It’s important that we continue to create these opportunities that lead to successful and rewarding career paths.”

GEICO Executive Vice President and CIO Greg Kalinsky said, “Our commitment to innovation and our role in helping GEICO use technology to delight our customers has created incredibly dynamic technology opportunities for our IT associates. They tell me they are more successful and having a bigger impact than they ever dreamed. They are having unexpected careers that they find very rewarding. That’s what we love to see.”

Kalinsky noted, “We think the company’s success in all things digital – from its award-winning website to its best-in-class mobile app – has been aided by having a diverse and committed workforce and presenting associates with dynamic career choices. Our focus on modernizing all systems that support our associates and customers is a testament to the critical role IT plays in our success. I am truly humbled and thrilled for all GEICO associates to be recognized as a Top Company for Women Technologists.”

© 2017 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

GEICO on Ward Group’s Top 50 Insurers for 27th Year

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Few companies are able to stand the test of time and maintain an outstanding financial performance spanning nearly three decades.

GEICO has notched a spot on Ward Group’s 2017 list of 50 top performing insurance companies. GEICO is one of only a few companies to have earned a top 50 designation for 27 consecutive years.

“The ability to remain in this position for more than two decades is a remarkable achievement in our company’s history and demonstrates a high-level of trustworthiness from our growing customer base,” said Bill Roberts, GEICO president and chief operating officer. “We are proud to be recognized by The Ward Group as a top performing insurance company.”

To develop its annual top 50 list, Ward Group analyzes the financial performance of nearly 3,000 property and casualty insurance companies domiciled in the U.S., and identifies the top performers over the previous five year period (2012-2016).

Jeff Rieder, partner, head of Ward Group mentioned that low investment returns, rising loss costs, and competitive market conditions continue to impact financial returns for the industry. “In selecting the Ward’s 50, we identified companies that pass financial stability requirements and measure their ability to grow while maintaining strong capital positions and underwriting results,” said Rieder.

© 2017 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

GEICO’s Catastrophe Response (CAT) Teams on the Job in Florida

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GEICO’s Catastrophe Response (CAT) teams are now on the ground in Florida.

The CAT teams include auto damage adjusters, supervisors, managers, and IT personnel that are ready to assist policyholders in the wake of Hurricane Irma.

Georgia, South Carolina, and Tennessee adjusters are also ready to assist in those areas.

GEICO is staffing drive-in claims centers throughout Florida. At the same time several hundred associates around the country are taking loss reports and answering incoming calls. As roads open and areas become more accessible GEICO adjusters are expected to see several thousand vehicles through the week.

Berkshire Hathaway’s GEICO is the top auto insurer in Florida, and has the most at risk with Hurricane Irma possibly headed for landfall on the state’s east coast.

In 2016, GEICO had a 20.68% market share of all auto policies in Florida.

© 2017 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

Berkshire Hathaway Most Vulnerable Auto Insurer in Florida

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Berkshire Hathaway’s GEICO is the top auto insurer in Florida, and has the most at risk with Hurricane Irma possibly headed for landfall on the state’s east coast.

In 2016, GEICO had a 20.68% market share of all auto policies in Florida.

The Category 5 storm. which has been leaving a trail of destruction through the Caribbean, could hit Florida in the early morning hours of Sunday.

The magnitude of the hurricane has Florida Gov. Rick Scott warning that the damage could be greater than 1992’s Hurricane Andrew, which caused 65 fatalities and $26.5 billion in damage.

“I want everybody to understand the importance of this. This is bigger than Andrew,” Gov. Scott said.

GEICO will be sending its Catastrophe Response (CAT) teams to Florida. The CAT teams include auto damage adjusters, supervisors and managers, and IT personnel.

Last week, GEICO sent CAT teams to Houston in the wake deal with the estimated 50,000 vehicles the company insures that were damaged by Hurricane Harvey.

© 2017 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

GEICO CAT Teams on the Ground in Houston

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GEICO has sent its Catastrophe Response (CAT) teams to Houston to handle damage claims in the wake of the massive flooding caused by Hurricane Harvey.

The hurricane may be the most destructive hurricane in U.S. history due to the estimated 500,000-1,000,000 vehicles that were damaged. Initial estimates put the number of those vehicles that are insured by GEICO at around 50,000.

The CAT teams include auto damage adjusters, supervisors and managers, and IT personnel.

GEICO earlier installed express call lines for Hurricane Harvey claims and the company reports its claims teams are effectively answering the incoming calls.

© 2017 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

GEICO Celebrates 4 Million Policies Milestone

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GEICO Insurance is celebrating reaching the four million policies milestone.

“Four million policies in force is truly a remarkable achievement in the history of the GEICO Insurance Agency,” says John Zinno, president of the GEICO Insurance Agency. “This milestone speaks volumes about our growth but more importantly, it exemplifies the hard work and dedication of our associates.”

Improved sales, service and customer retention along with a commitment to providing great products and services have been a catalyst for the GEICO Insurance Agency’s growth, and it also ties back into the company’s 20-year-old motto that emphasizes the importance of providing exceptional customer service.

“’Never say no to a customer’ is an attitude that is central to the way we interact with customers,” says Zinno. “It’s imperative that we always go the extra mile to make sure our customers have a remarkable experience every step of the way.”

Headquartered in Fredericksburg, Va., with offices in Buffalo, N.Y., and Virginia Beach, Va., the GEICO Insurance Agency is a subsidiary of the GEICO Corporation. The company offers multiple lines of insurance products, including homeowners, renters, condo, boat and umbrella insurance. Associates in the company’s three locations marked the achievement with a celebration.

© 2017 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

GEICO Besting Esurance in Illinois

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GEICO Casualty has been gaining customers in Illinois while its competitor, Allstate’s Esurance, has seen policyholder slippage.

Esurance’s total Illinois policyholders dropped 4% from the prior year to 49,317, according to its June 12 filing with the Illinois Department of Insurance. Nationally, its total policyholders fell 2% to 1.4 million from 1.43 million.

In contrast, GEICO Casualty’s Illinois policyholders grew to 212,029 policyholders as of March 31, which is a strong 15% increase from 183,644 policyholders.

In 2011, Allstate bought Esurance and Answer Financial from White Mountains Insurance Group for roughly $1 billion. Esurance sells auto insurance directly to customers online and through call centers. The unit has never turned a profit, and Allstate has responded by slashing its advertising budget.

© 2017 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.