In a press-release earlier today, The Hartford announced plans to extend its agreement with AARP (formerly the American Association of Retired Persons) to offer home and auto insurance to its memebers for 3 more years: “For many years, The Hartford has provided valuable auto and home insurance products and exceptional customer service to our members. We are pleased to announce a further extension of the relationship,” stated senior vice president of Financial Products and Services for AARP, Micah Stevens.
By announcing this three year extension, The Hartford has guaranteed this program with the AARP through the year 2023. The relationship started in 1984.
Not only does this agreement with AARP provide home and auto insurance to those age 50 or over, it also provides personal umbrella coverage (Not actual insurance for your umbrella, but insurance coverage that is used once one’s coverage limits have been surpassed.), coverage for one’s motor-homes, and also for off-road recreational vehicles (Apparently, there is a market for 50+ year old’s who own off-road recreational vehicles…)
The Hartford is specifically suited as a company to partner with AARP. The Hartford Center for Mature Market Excellence was established in 1984, and over the past 30 years has researched the safety, mobility, and independence of people aged 50 and older. Each branch of the center employees gerontologists to ensure that The Hartford’s clientele are receiving the most up-to-date, effective care they can possibly receive from their insurance provider.
Last year, The Hartford completely restructured its business by selling off its retirement solutions and individual life insurance businesses, focusing solely on casualty and property insurance. The Hartford’s agreement with the AARP and its 37 million members has resulted in earned premiums of $2.8 billion over the past 3 years, which comprises 77% of the consumer’s net premium of $3.6 billion.
Currently, The Hartford is operating at an underwriting loss at 105.4%. By restructuring its organization to focus exclusively on casualty and property insurance, The Hartford hopes to turn business around and start taking in more money than it is paying out. With flood insurance premiums rising on homes located near water, this hope may come true sooner than later (that is, if it actually stops flooding…)
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