Elephant Insurance has filed updates to its Virginia personal auto program that introduce a new in-agency transfer discount while making revisions to its existing rate capping methodology.
The new discount applies when an agent moves a customer from a competing insurer to Elephant, provided the agent of record remains the same, the prior policy was continuously in force for at least 12 months, and there is no lapse in coverage. Eligible policyholders will receive a 5% discount for their initial term and first renewal, after which the discount expires. Policies that lapse after receiving the discount cannot requalify if rewritten with Elephant.
Elephant is also updating its rate stabilization rule to address agency book rolls. Under the revised framework, policies transferred from another carrier through a qualified book roll will be subject to premium caps during the initial term. If the uncapped premium increase exceeds 10%, the premium will be limited to a 10% increase; similarly, decreases greater than 10% will be capped. Normal rate capping rules will apply at subsequent renewals.
According to the filing, the changes are rate neutral, with no overall premium impact on the company’s Virginia private passenger auto book.