Aaa car insurer says it will stop selling Aaa after it loses $1bn in market share
The Aaa Automotive Group has announced that it will suspend its car insurance business and will sell its insurance products in a different fashion.
The company said it would focus its insurance business on smaller-sized vehicles and “be more focused on the insurance industry’s needs”.
“In order to deliver a more competitive insurance business, we will focus on offering a wide range of products in 2018 and beyond,” the company said in a statement.
“We will continue to deliver premium car insurance products and will offer our customers the most advanced technology to meet the evolving needs of the auto industry.”
The news comes as Aaa, the world’s second-largest car insurer, is facing criticism over its handling of its own car insurance and the risk-management program, which is under scrutiny for being overly complex and expensive.
In October, the US Department of Justice filed a civil suit against the company alleging it has “violated” the terms of its policies.
The Justice Department alleges that Aaa’s auto insurance policy policies fail to cover the costs of a driver’s death, including the driver’s medical costs.
Aaa’s chief executive, Gary D. Fink, has said that the company will fight the allegations in court, and has called for an overhaul of the company’s risk management system.