Safeco announced it is taking to the open road with new motorcycle coverage designed to compete in a market that’s growing steadily at an estimated 10 percent a year. The new motorcycle product is being phased in nationally and launched in Texas in April.
“There are about 355,000 motorcycle owners in Texas and more than 6 million bikes on the road. That’s an estimated $700 million a year in written premium,” SAFECO senior product manager Bob Enna said.
“Historically, the insurance industry too often has looked at motorcycle business as substandard. But that’s not true any more. SAFECO has a lot of preferred customers with disposable income who buy motorcycles, dirt bikes and all-terrain vehicles (ATV).” The average motorcycle owner is 38 years old with an annual median household income of $44,000.
The new SAFECO product targets baby-boomers who drive the heavier cruisers and touring bikes, but the market is wide open. “We designed the new motorcycle coverage with broad segmentation and price tiering to accommodate just about any type of bike on the road,” Enna said.
The new motorcycle coverage fulfills a core SAFECO strategy to offer a full line of personal insurance products and target a new segment of customers. The products benefits to agents—more cross-selling opportunities and better retention of existing customers—are essential for SAFECO to meet its goal of becoming a top-five national writer of auto insurance.
Specifics of the coverage include limits up to $500,000. The product is being underwritten by Home State County Mutual and is available in Texas, Indiana, Oregon and Colorado, with a national rollout continuing through 2003.
For more information , contact senior product manager Bob Enna, (720) 497-9454; bobenn@safeco.com.
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