American Economy Insurance Company has filed to adjust tier factors for its Safeco personal auto program in Nebraska, citing declining quote-to-policy conversion as evidence that new business pricing has become less competitive.
The supporting memorandum defines its “closure” ratio as policies bound divided by quotes. The insurer says conversion continued to decline from a March 2026 peak of approximately 4%, despite a rate reduction in July.
“Since our last rate reduction in July, the closure ratio has continued to decline from the peak level of approximately 4% observed in March. This sustained downward trend further indicates diminished competitiveness under the current rate structure.”
The company argues that the decline supports a larger decrease to better align pricing with market conditions and reach more customers. It acknowledges that conversion is not a loss-based measure but describes it as relevant to assessing customer responsiveness to pricing.
However, the filing reports a 0.0% overall rate impact, including zero maximum and minimum changes, while the memorandum describes a proposed decrease. The public materials do not reconcile those figures or disclose the revised tier factors, for which the company requested confidential treatment.
The filing lists 1,580 policyholders and approximately $3.39 million in written premium. Nebraska recorded a File & Use disposition on October 15, 2026, with effective dates of November 3 for new business and December 13 for renewals.
