Mercury Insurance is leading an initiative to ensure insurance access and coverage continuity for numerous California consumers. Through close collaboration, Tokio Marine (TMA) and Mercury have devised a strategy to seamlessly transfer TMA and its subsidiary, Trans Pacific Insurance Company (TPIC), customers to Mercury.
This transition is facilitated by a coalition of California independent insurance agents and with guidance from the California Department of Insurance.
TMA, primarily focused on personal lines insurance within California, holds a modest share of the state’s personal lines market.
Due to this limited market presence and the expenses associated with updating its IT infrastructure, the company disclosed in April 2023 its inability to viably maintain personal lines coverages. Consequently, TMA announced its decision to withdraw from the personal lines market. Following this announcement, the Department of Insurance evaluated the proposal to transition TMA’s customers to Mercury.
Gabriel Tirador, Chief Executive Officer and Director of Mercury, remarked: “Innovative solutions surface during challenging times.”
Adding: “A diverse group of entities worked together on this project with the common goal of providing coverage for California insurance consumers.”
The departure of TMA and TPIC, from the personal lines market does not affect any other entities within the Tokio Marine Group. The company remains committed to providing commercial coverage for businesses in California.
“We are pleased to have reached an agreement with Mercury Insurance Group to support our personal lines agents and customers during this transition period,” noted Daisuke Ugaeri, Chief Executive Officer at TMA. “Tokio Marine America remains committed to commercial lines in California — and across the country — and supporting our agents and customers with exceptional service through this transition.”
When TMA opted to withdraw from its personal lines business in California, they promptly began seeking solutions to assist affected customers and agents. Over the past few months, amidst a wave of insurance companies exiting or pausing new business applications in California, the plan gradually took shape. Unlike others, Mercury remained open to new business throughout this period, standing out as one of the few companies to consistently support independent agents and consumers in California.
Brandt Minnich, Mercury’s Vice president and Chief Sales Development Officer, stated: “Tokio Marine America customers are similar to ours in terms of their coverage needs and their insurance agent relationships.”
Minnich further commented: “Starting in January 2024, we began working with TMA to bring together a cohesive group of independent agents who could facilitate the transfer of their policies to Mercury for those customers who were interested, ensuring continuing coverage.”
To address the agent aspect, Mercury collaborated with a group of its existing independent agents who already represented TMA. Additionally, over a dozen TMA agents were extended appointments as Mercury agents to aid in the transition process.
Mercury’s involvement in the transition was motivated by factors beyond merely seizing a new business opportunity. “We believe very strongly in California’s future,” said Tirador. “The steps Commissioner Lara and the California Department of Insurance are taking to modernise the insurance market through the Commissioner’s “Sustainable Insurance Strategy” will help stabilise the market and create a transparent, sustainable model that will benefit California consumers.”
