American Express Property Casualty Slashes Wisconsin Auto Insurance Rates
25 February 2000
The American Express Property Casualty Companies Slashes Wisconsin Auto Insurance RatesLow Loss Claims, Growing Trends of Buying Direct and Online Quoting Drive Rates Down GREEN BAY, Wis., Feb. 25 -- A statewide provider of auto insurance announced a significant rate reduction today for Wisconsin drivers, citing low customer loss claims and the increased acceptance of buying insurance products direct and online as major factors that are driving rates down. The Green Bay-based American Express Property Casualty companies announced today that it has reduced auto insurance rates seven percent for qualified Wisconsin drivers. Effective immediately, the rate reduction provides significant cost savings, with some drivers saving up to $200 a year on their current coverage. "Our seven percent reduction is a combined result of internal and insurance industry factors, the most significant being low customer loss claims, our direct sales approach, and the rapidly growing practice of quoting and selling auto insurance online," said Ken Ciak, president of the American Express Property Casualty companies. The American Express Property Casualty companies entered the auto and home insurance market in 1986 when it began offering insurance products to its credit card holders as a membership benefit. In 1990, the company opened up its insurance offerings to non-card members. The American Express Property Casualty companies is one of only a handful of Wisconsin insurers that sell their insurance products direct, "minus the middleman," or agent. "There's no doubt that selling direct results in cost savings for the consumer," Ciak said. "For example, when you compare our auto insurance rates to an insurer that sells through agents, drivers can see up to a 20 percent decrease in their rates." People interested in obtaining an auto, home, or multi-policy estimate can call the American Express Property Casualty companies at 800-842-3344. In addition to direct, or telesales, Ciak's company is gearing up to quote and sell both auto and home insurance via the internet. The company is investing substantial funds in order to offer consumers nationwide the ability to access policy and rate information online. Ciak predicts that the company will roll-out its interactive capabilities nationwide by April of 2001. The initial phase will begin in March of this year. According to Ciak, external factors like safer cars, seat belt enforcement, graduated drivers' licenses, crackdowns on drunk driving and the fact that baby boomers are moving into their "safe driving years" are also contributing to auto insurance decreases. The American Express Property Casualty companies provides auto and homeowners insurance for qualified customers in 34 different states. The company employs approximately 475 employees at its Green Bay insurance division headquarters.