Very profitable business - eats you alive if you don't watch it closely

Implications: 1) Full Disclosure - Mark Mariotti ran a nonstandard auto operation (California admitted MGA with Ohio company underwriting)  in Southern California during the 1970's &  '80s with a direct-marketing model and a non-internet online (yes back then) reservation style quoting system. Our loss ratios were VERY LOW. 2) Basically it is risk versus reward. Many cannot obtain auto insurance whatsoever with a messy MVR - thereby opening the doors for a very aggressive and systemized firm to take on the risk. 3) Technology will make this very specific segment profitable as long as the operator watches the loss-ratio and g&a expenses like scrooge.

Analysis: Unfortunately no matter what level of training has been provided, some auto drivers simply cannot grasp a safe driving routine. Some are accident prone and others have a lead foot.

The 'poor driver' as a 'poor risk' is identified to protect a standard portfolio from poor loss-ratio numbers.

A pool of these drivers (hedged by reinsurance, SUPER HIGH PHYSICAL DAMAGE DEDUCTIBLES, and internal subrogation teams) can yield a very nice loss-ratio. Keeping an eye on expenses to generate the premium-lead is critical, technology provides a more cost effective model than booking business via agents.