|
AIG Disputes Its Complaint Ranking by N.J. Department of Insurance
(BestWire Services Via Thomson Dialog NewsEdge)
American International Group Inc. (NYSE:AIG) said it disputes the ranking a group of its companies received from the New Jersey Department of Banking and Insurance in its 2006 Auto Insurance Consumer Information Report.
The report ranks insurers by the number of valid complaints the department has received compared with the number of vehicles insured by the company.
"The 2006 consumer information report attributes 11 complaints to the AIG companies that write assigned risk business. AIG disputes the findings, in that we can identify a total of only eight valid complaints against AIG entities. Seven of the eight complaints occurred during or as the result of the transition of the business from the (third-party administrator). The issues causing the complaints have been addressed and resolved," the company said in a statement.
The three worst-ranked private-passenger automobile insurance companies in New Jersey, according to the DOBI report, are:
AIG Centennial Group;
Consumer First Insurance Co.; and
Clarendon National Insurance Co.
The report ranked companies worst to best. In total, there were 180 valid complaints against the insurance companies covered in the report for last year. This is up from 2005's 154 valid complaints overall.
AIG Centennial Group and Clarendon National are Limited Assignment Distribution carriers, which accept assignments for another company for their share of the state's residual market exposures.
It is the second consecutive year that AIG Centennial topped the list with 11 valid complaints and 7,617 vehicles insured, giving the company a complaint ratio of 1.44.
In 2005, the company topped the list with three valid complaints and 8,660 vehicles insured and a complaint ratio of 0.35 (BestWire, May 5, 2006).
Consumer First, which enjoyed one of the lowest complaint ratios in 2005, was the second-worst ranked company in 2006 with two valid complaints and a complaint ratio of 0.20. Clarendon, the second-worst ranked in 2005, was the third-worst ranked company in 2006 with three valid complaints and a complaint ratio of 0.18.
Attempts to reach Consumer First and Clarendon were not immediately successful.
Each of the 37 companies ranked insures at least 3,000 vehicles and has conducted business in the state for at least one year. The complaint ratio is based on the number of valid complaints per 3,000 autos insured, the report said.
The best-ranked, according to the report, were New Jersey Manufacturers Group, Palisades Group, Chubb Insurance Company of New Jersey, Atlantic Mutual Group, Founders Insurance Co., Ameriprise Financial Group, Firemen's Fund Indemnity Corp., Electric Insurance Co. and LAD carrier Auto One/Camden Fire, all with no valid complaints.
In 2005, the top five writers of private-passenger auto insurance in New Jersey, according to A.M. Best Co. state/line product information based on direct premiums written, were: Allstate Insurance Group, with a 15.6% market share; NJM Insurance Group, with 13.4%; State Farm Group, with 9.8%; Berkshire Hathaway Insurance Group, with 9.3%; and Palisades Group, with 9%.
(By Tom De Martini, associate editor, BestWeek: Thomas.DeMartini@ambest.com)
Copyright 2007 A.M. Best Company, Inc.
[ Back To Smart Product Home's Homepage ]
|