> -----Original Message-----
> From: Rich Sieger [SMTP:RichSieger@cnico.com]
> Sent: Tuesday, June 29, 1999 5:56 PM
> To: casnet@lists.casact.org
> Subject: Personal Auto Loss Reduction
>
> To break the tension from exam results, I thought I'd ask your opinions on
> this scenario.
>
> In my company's California personal auto program, we had larger than
> average loss ratios in the winter, which I could explain away to my
> superiors as being due to weather. But there was also a month or two in
> each of the last two summers (Jun-Aug) where there were higher than
> average loss ratios for liability and physical damage. I noticed in our
> homeowners program that the cause of loss with the largest number of
> claims in the summer is theft. That would explain a higher than average
> personal auto comp loss ratio. I assume the reason for higher than average
> p.a. liability and collision would be due to policyholders taking long
> road trips and getting into accidents.
>
> Which leads me to my idea. I thought we could cross market with an airline
> to give discount tickets to our policyholders for use in June through
> August and for flights within the state or to immediately adjacent states
> (to cut down on 2-5 hour summer car trips that could lead to high-speed
> accidents and thus cut down on losses). I have two questions:
>
> 1. Where would the cost of the redeemed coupons fall in terms of
> ratemaking? General expenses?
>
> 2. Would regulators go for this?
>
> By the way, I bounced the idea of one person in the company and he just
> said it was a wild idea and left it at that.
>
> richsieger@cnico.com
>
>
>
>
>
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