2023 Underwriting Initiatives

We’re pleased to report that despite a challenging 2022, A. M. Best has affirmed our A- (Excellent) rating. We believe their affirmation came in part due to the many things we are doing to combat the challenges our industry is facing. As we move ahead into 2023, we want to make you aware of these tactics.

To address increasing weather challenges, we now use Betterview aerial imagery to identify roofs in poor condition. Obviously, poor roofs are more susceptible to strong winds and hail. You may notice some non-renewals or the use of higher deductibles and our new ACV roof endorsement.

To address rising inflation, we employed e2Value to estimate the replacement cost on a significant portion of our homeowner’s book. A specific summary of how this will be utilized is shown below.

To address increased loss ratios associated with weak financial standings, we have again run Insurance Scores on our entire book of business. Our industry understands that low credit scores are a strong indicator of higher loss ratios.

These three strategies have now armed us with a lot of quality data. Our underwriters have begun using this data to find weak spots in our book. You may see a rise in communication involving actions taken on specific policies. Rest assured though; we are not intending to dramatically disrupt our book. The rise in communication should only be minor. The hope is to weed out the poor risks so that our good policyholders don’t have to face unnecessary rate increases.

We truly appreciate all the hard work you put in on behalf of Loudoun Mutual!

If you have any questions about any of these strategies, please let me know.

Take care.

Tim Koppenhaver
Executive Vice President
Underwriting Manager