GEICO closes California insurance offices, lays off hundreds. State is ‘monitoring’ situation

GURPS

INGSOC
PREMO Member
A GEICO spokesperson would not comment on the new changes but said the company was not leaving California.

“We continue to write policies in California, and we remain available through our direct channels for the more than 2.18 million California customers presently insured with us,” the company said in an unsigned emailed statement to The Sacramento Bee.

The changes leave online options through a computer or a mobile device as the only way to obtain a GEICO policy in California

GEICO is one of the largest property and casualty insurers in California but Soller said consumers have options. He said more than 130 companies compete for private passenger auto business and more than 70 companies write homeowners insurance.


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A New business model or not enough profit to maintain the 38 offices ?

Does your Auto Insurance Company still need to have all of these local community offices in the age of the internet ?
 

spr1975wshs

Mostly settled in...
Ad Free Experience
Patron
I'd venture the guess that GEICO is reacting to California's excessive/expensive regulatory and employee benefits mandates.

We've done our business with USAA via snail mail (started with them the fall of 1978), phone, email or website.
I think the only time we've been face to face with a rep was when we initially setup the account.
That person and some colleagues had a table at Norwich's (military college in Vermont) alumni weekend.
Anita and I were both AFROTC cadets at the time.
 
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