320 W. Washington Street
Springfield, Illinois 62767
(217) 782-4515
http://insurance.illinois.gov
Illinois Department of Insurance
JB Pritzker
Governor
Dana Popish Severinghaus
Director
June 23, 2022
Mr. Timothy G. NeCastro, President
Erie Insurance Group
100 Erie Insurance Place
Erie, PA. 16530
Re: Erie
Insurance Exchange, NAIC 26271
E
rie Insurance Company, NAIC 26263
Erie Insurance Company of New York, NAIC 16233
Market Conduct Examination Verified Report
D
ear Mr. NeCastro,
A
Market Conduct Examination of your companies was conducted by an authorized examiner designated by the
Director of the Illinois Department of Insurance (“Department”) pursuant to Illinois Insurance Code (“Code”)
Sections 132, 132.5(f), 404(1)(a) and 404(1)(c). This examination covered the period of January 1, 2019, through
March 31, 2022. Enclosed with this letter is a copy of the verified examination report.
The
examination report is a public document under the Freedom of Information Act (“FOIA”) [5 ILCS 140/1 et
seq.] and will be posted on the Department’s website. To the extent that the examination report contains information
that your Company deems private, personal, or trade secret pursuant to Sections 7(1)(b), (c), or (g) of FOIA [5 ILCS
140/7(b), (c), and (g)], your Company may request that the Department redact such information from the report
prior to making it public. In making a request for confidentiality, your Company must provide a factual basis for
its assertion of confidentiality. The Department will consider the request and determine whether such information
is exempt from disclosure under Section 7 of FOIA.
N
o company, corporation, or individual shall use this report or any statement, excerpt, portion, or section thereof
for any advertising, marketing or solicitation purpose. Any company, corporation or individual action contrary to
the above shall be deemed a violation of Section 149 of the Illinois Insurance Code (215 ILCS 5/149).
P
lease contact me if you have any questions.
S
incerely,
E
rica Weyhenmeyer
Chief Market Conduct Examiner
Illinois Department of Insurance
320 West Washington St., 5th Floor
Springfield, IL 62767
Phone: 217-782-1790
Erica.Weyhenmey[email protected]
Company Name: Erie Insurance Exchange
CoCode: 26271
Group Code: 213
Private Passenger Auto Liability
Statewide data (Illinois only) as of 3/31/2022 Q1 - 2019 Q2 -2019 Q3 - 2019 Q4 - 2019 Q1 - 2020 Q2 - 2020 Q3 - 2020 Q4 - 2020 Q1 - 2021 Q2 - 2021 Q3 - 2021 Q4 - 2021
(2) All expenses other than loss adjustment expenses, excluding amounts from item 5 below 3,072,966 4,034,760 3,934,014 3,080,620 2,993,412 3,664,603 3,648,556 2,961,020 2,882,547 3,650,367 3,538,099 3,485,030
(3) Net Earned Premium Before Application of any COVID-19 Related Premium Credit/Refund/Dividend 12,729,432 12,863,758 12,999,033 12,965,949 12,804,349 12,597,734 12,507,166 12,341,357 12,155,344 12,123,324 12,092,459 12,129,140
(4) The Amount of any COVID-19 Related Premium Credit/Refund/Dividend accounted for as premium 0 0 0 0 0 0 0 0 0 0 0 0
(5) The Amount of any COVID-19 Related Credit/Refund/Dividend accounted for as expense 0 0 0 0 0 2,549,173 -2,803 172 0 0 0 0
(6) Net Ultimate Incurred Losses and Defense and Cost Containment Expenses 8,601,217 11,314,972 10,692,696 11,793,093 7,911,259 6,860,901 6,669,753 6,832,580 7,986,253 8,951,777 8,465,095 10,628,655
(7) Net Ultimate Adjusting & Other 1,240,769 1,375,109 1,248,611 1,388,867 1,282,283 1,337,526 1,273,806 1,338,563 1,306,949 1,208,915 1,302,686 1,284,065
(8) Ultimate Reported Claim Counts (excluding Claims Closed without Payment) 1,049 1,269 1,243 1,267 819 623 753 702 717 889 931 1,010
(9) Open Claim Counts 13 19 33 26 22 26 35 41 59 84 142 302
Post-refund combined ratio (6+7+2+5)/(3-4) 101.5% 130.0% 122.1% 125.4% 95.2% 114.4% 92.7% 90.2% 100.2% 113.9% 110.0% 126.9%
Pre-refund combined ratio (6+7+2)/(3) 101.5% 130.0%
122.1% 125.4% 95.2% 94.2% 92.7% 90.2% 100.2% 113.9% 110.0% 126.9%
Claims severity (6)/(8) 8,200 8,914 8,605 9,308 9,656 11,006 8,859 9,729 11,145 10,064 9,097 10,518
Notes:
Data from row (1) will be made available on an all company weighted average frequency basis. Data will not be publicly released on an individual company basis.
All data provided in rows (2)-(9) will be considered public.
"Net" refers to net of reinsurance and salvage & subrogation.
Claim counts should be reported net of quota share reinsurance.
Accident Quarter
Company Name: Erie Insurance Exchange
CoCode: 26271
Group Code: 213
Private Passenger Auto Physical Damage
Statewide data (Illinois only) as of 3/31/2022 Q1 - 2019 Q2 -2019 Q3 - 2019 Q4 - 2019 Q1 - 2020 Q2 - 2020 Q3 - 2020 Q4 - 2020 Q1 - 2021 Q2 - 2021 Q3 - 2021 Q4 - 2021
(2) All expenses other than loss adjustment expenses, excluding amounts from item 5 below 2,616,265 3,383,995 3,306,244 2,627,581 2,672,352 3,182,251 3,245,935 2,690,333 2,735,168 3,421,722 3,411,972 3,372,400
(3) Net Earned Premium Before Application of any COVID-19 Related Premium Credit/Refund/Dividend 10,467,714 10,638,784 10,812,079 10,870,917 10,834,819 10,736,527 10,754,867 10,798,818 10,832,644 11,026,049 11,204,562 11,406,852
(4) The Amount of any COVID-19 Related Premium Credit/Refund/Dividend accounted for as premium 0 0 0 0 0 0 0 0 0 0 0 0
(5) The Amount of any COVID-19 Related Credit/Refund/Dividend accounted for as expense 0 0 0 0 0 2,173,843 9,338 150 0 0 0 0
(6) Net Ultimate Incurred Losses and Defense and Cost Containment Expenses 6,691,310 8,533,527 7,225,345 8,631,123 6,093,461 6,215,259 7,244,567 6,982,564 6,777,239 8,324,130 9,100,727 11,111,660
(7) Net Ultimate Adjusting & Other 1,023,736 1,144,606 1,044,626 1,165,379 1,084,898 1,142,234 1,097,637 1,170,749 1,177,839 1,093,449 1,193,103 1,189,548
(8) Ultimate Reported Claim Counts (excluding Claims Closed without Payment) 3,153 3,424 3,106 3,201 2,558 2,422 2,885 2,487 2,744 3,091 3,125 3,134
(9) Open Claim Counts 0 1 0 0 0 1 1 1 2 10 30 124
Post-refund combined ratio (6+7+2+5)/(3-4) 98.7% 122.8% 107.1% 114.3% 90.9% 118.4% 107.8% 100.4% 98.7% 116.4% 122.3% 137.4%
Pre-refund combined ratio (6+7+2)/(3) 98.7% 122.8%
107.1% 114.3% 90.9% 98.2% 107.7% 100.4% 98.7% 116.4% 122.3% 137.4%
Claims severity (6)/(8) 2,122 2,492 2,326 2,696 2,382 2,566 2,511 2,808 2,470 2,693 2,912 3,545
Notes:
Data from row (1) will be made available on an all company weighted average frequency basis. Data will not be publicly released on an individual company basis.
All data provided in rows (2)-(9) will be considered public.
"Net" refers to net of reinsurance and salvage & subrogation.
Claim counts should be reported net of quota share reinsurance.
Accident Quarter
Company Name: Erie Insurance Company CoCode: 26263 Group Code: 213
Private Passenger Auto Liability
Statewide data (Illinois only) as of 3/31/2022 Q1 - 2019 Q2 -2019
Q3 - 2019 Q4 - 2019 Q1 - 2020 Q2 - 2020 Q3 - 2020 Q4 - 2020 Q1 - 2021 Q2 - 2021 Q3 - 2021
Q4 - 2021
(2) All expenses other than loss adjustment expenses, excluding amounts from item 5 below 162,591 213,479 208,149 162,996
158,382 193,894 193,045 156,668 152,516 193,141 187,201
184,393
(3) Net Earned Premium Before Application of any COVID-19 Related Premium Credit/Refund/Dividend 673,515
680,622
687,780 686,029 677,479 666,547 661,755 652,982 643,140
641,446
639,813 641,753
(4) The Amount of any COVID-19 Related Premium Credit/Refund/Dividend accounted for as premium 0 0 0 0 0 0 0
0 0 0 0 0
(5) The Amount of any COVID-19 Related Credit/Refund/Dividend accounted for as expense 0 0 0 0
0 134,877 -148 9 0 0 0 0
(6) Net Ultimate Incurred Losses and Defense and Cost Containment Expenses 455,091 598,676 565,751 623,973 418,585 363,011 352,897 361,512 422,553 473,639 447,889 562,363
(7) Net Ultimate Adjusting & Other 65,649 72,757 66,064 73,485 67,846 70,769 67,397
70,823 69,151 63,964 68,925 67,940
(8) Ultimate Reported Claim Counts (excluding Claims Closed without Payment) 55 67 66 67
43 33 40 37 38 47 49 53
(9) Open Claim Counts 1 1 2 1 1 1 2 2 3 4 8 16
Post-refund combined ratio (6+7+2+5)/(3-4) 101.5% 130.0% 122.1% 125.4% 95.2%
114.4% 92.7% 90.2% 100.2% 113.9% 110.0% 126.9%
Pre-refund combined ratio (6+7+2)/(3) 101.5% 130.0% 122.1% 125.4% 95.2% 94.2% 92.7% 90.2% 100.2% 113.9% 110.0% 126.9%
Claims severity (6)/(8) 8,200 8,914 8,605 9,308
9,656 11,006 8,859 9,729 11,145
10,064 9,097 10,518
Notes:
Data from row (1) will be made available on an all company weighted average frequency basis. Data will not be publicly released on an individual company basis.
All data provided in rows (2)-(9) will be considered public.
"Net" refers to net of reinsurance and salvage & subrogation.
Claim counts should be reported net of quota share reinsurance.
Accident Quarter
Company Name: Erie Insurance Company CoCode: 26263 Group Code: 213
Private Passenger Auto Physical Damage
Statewide data (Illinois only) as of 3/31/2022 Q1 - 2019 Q2 -2019
Q3 - 2019 Q4 - 2019 Q1 - 2020 Q2 - 2020 Q3 - 2020 Q4 - 2020 Q1 - 2021 Q2 - 2021 Q3 - 2021
Q4 - 2021
(2) All expenses other than loss adjustment expenses, excluding amounts from item 5 below 138,427 179,047 174,934 139,025
141,394 168,373 171,743 142,346 144,718 181,043 180,528
178,434
(3) Net Earned Premium Before Application of any COVID-19 Related Premium Credit/Refund/Dividend 553,847
562,899
572,068 575,181 573,271 568,070 569,041 571,366 573,156
583,389
592,834 603,537
(4) The Amount of any COVID-19 Related Premium Credit/Refund/Dividend accounted for as premium 0 0 0 0 0 0 0
0 0 0 0 0
(5) The Amount of any COVID-19 Related Credit/Refund/Dividend accounted for as expense 0 0 0 0
0 115,018 494 8 0 0 0 0
(6) Net Ultimate Incurred Losses and Defense and Cost Containment Expenses 354,038 451,509 382,293 456,673 322,405 328,850 383,310 369,448 358,584 440,430 481,520 587,918
(7) Net Ultimate Adjusting & Other 54,166 60,561 55,271 61,660 57,402 60,436 58,076
61,944 62,320 57,854 63,127 62,939
(8) Ultimate Reported Claim Counts (excluding Claims Closed without Payment) 167 181 164 169 135
128 153 132 145 164 165 166
(9) Open Claim Counts 0 0 0 0 0 0 0 0 0 1 2 7
Post-refund combined ratio (6+7+2+5)/(3-4) 98.7% 122.8% 107.1% 114.3% 90.9%
118.4% 107.8% 100.4% 98.7% 116.4% 122.3% 137.4%
Pre-refund combined ratio (6+7+2)/(3) 98.7% 122.8% 107.1% 114.3% 90.9% 98.2% 107.7% 100.4% 98.7% 116.4% 122.3% 137.4%
Claims severity (6)/(8) 2,122 2,492 2,326 2,696
2,382 2,566 2,511 2,808 2,470
2,693 2,912 3,545
Notes:
Data from row (1) will be made available on an all company weighted average frequency basis. Data will not be publicly released on an individual company basis.
All data provided in rows (2)-(9) will be considered public.
"Net" refers to net of reinsurance and salvage & subrogation.
Claim counts should be reported net of quota share reinsurance.
Accident Quarter
Company Name: Erie Insurance Company of New York CoCode: 16233 Group Code: 213
Private Passenger Auto Liability
Statewide data (Illinois only) as of 3/31/2022 Q1 - 2019 Q2 -2019
Q3 - 2019 Q4 - 2019 Q1 - 2020 Q2 - 2020 Q3 - 2020 Q4 - 2020 Q1 - 2021 Q2 - 2021 Q3 - 2021
Q4 - 2021
(2) All expenses other than loss adjustment expenses, excluding amounts from item 5 below 16,259 21,348 20,815 16,300
15,838 19,389 19,305 15,667 15,252 19,314 18,720
18,439
(3) Net Earned Premium Before Application of any COVID-19 Related Premium Credit/Refund/Dividend 67,351
68,062
68,778 68,603 67,748 66,655 66,175 65,298
64,314
64,145 63,981 64,175
(4) The Amount of any COVID-19 Related Premium Credit/Refund/Dividend accounted for as premium 0 0 0 0 0 0 0
0 0 0 0 0
(5) The Amount of any COVID-19 Related Credit/Refund/Dividend accounted for as expense 0 0 0 0
0 13,488 -15 1 0 0 0 0
(6) Net Ultimate Incurred Losses and Defense and Cost Containment Expenses 45,509 59,868 56,575 62,397 41,859 36,301 35,290 36,151 42,255 47,364 44,789 56,236
(7) Net Ultimate Adjusting & Other 6,565 7,276 6,606 7,349 6,785 7,077 6,740
7,082 6,915 6,396 6,893 6,794
(8) Ultimate Reported Claim Counts (excluding Claims Closed without Payment) 6 7 7 7
4 3 4 4 4 5 5 5
(9) Open Claim Counts 0 0 0 0 0 0 0 0 0 0 1 2
Post-refund combined ratio (6+7+2+5)/(3-4) 101.5% 130.0% 122.1% 125.4% 95.2%
114.4% 92.7% 90.2% 100.2% 113.9% 110.0% 126.9%
Pre-refund combined ratio (6+7+2)/(3) 101.5% 130.0% 122.1% 125.4% 95.2% 94.2% 92.7% 90.2% 100.2% 113.9% 110.0% 126.9%
Claims severity (6)/(8) 8,200 8,914 8,605 9,308
9,656 11,006 8,859 9,729 11,145
10,064 9,097 10,518
Notes:
Data from row (1) will be made available on an all company weighted average frequency basis. Data will not be publicly released on an individual company basis.
All data provided in rows (2)-(9) will be considered public.
"Net" refers to net of reinsurance and salvage & subrogation.
Claim counts should be reported net of quota share reinsurance.
Accident Quarter
Company Name: Erie Insurance Company of New York CoCode: 16233 Group Code: 213
Private Passenger Auto Physical Damage
Statewide data (Illinois only) as of 3/31/2022 Q1 - 2019 Q2 -2019
Q3 - 2019 Q4 - 2019 Q1 - 2020 Q2 - 2020 Q3 - 2020 Q4 - 2020 Q1 - 2021 Q2 - 2021 Q3 - 2021
Q4 - 2021
(2) All expenses other than loss adjustment expenses, excluding amounts from item 5 below 13,843 17,905 17,493 13,903
14,139 16,837 17,174 14,235 14,472 18,104 18,053
17,843
(3) Net Earned Premium Before Application of any COVID-19 Related Premium Credit/Refund/Dividend 55,385
56,290
57,207 57,518 57,327 56,807 56,904 57,137
57,316
58,339 59,283 60,354
(4) The Amount of any COVID-19 Related Premium Credit/Refund/Dividend accounted for as premium 0 0 0 0 0 0 0
0 0 0 0 0
(5) The Amount of any COVID-19 Related Credit/Refund/Dividend accounted for as expense 0 0 0 0
0 11,502 49 1 0 0 0 0
(6) Net Ultimate Incurred Losses and Defense and Cost Containment Expenses 35,404 45,151 38,229 45,667 32,241 32,885 38,331 36,945 35,858 44,043 48,152 58,792
(7) Net Ultimate Adjusting & Other 5,417 6,056 5,527 6,166 5,740 6,044 5,808
6,194 6,232 5,785 6,313 6,294
(8) Ultimate Reported Claim Counts (excluding Claims Closed without Payment) 17 18 16 17
14 13 15 13 15 16 17 17
(9) Open Claim Counts 0 0 0 0 0 0 0 0 0 0 0 1
Post-refund combined ratio (6+7+2+5)/(3-4) 98.7% 122.8% 107.1% 114.3% 90.9%
118.4% 107.8% 100.4% 98.7% 116.4% 122.3% 137.4%
Pre-refund combined ratio (6+7+2)/(3) 98.7% 122.8% 107.1% 114.3% 90.9% 98.2% 107.7% 100.4% 98.7% 116.4% 122.3% 137.4%
Claims severity (6)/(8) 2,122 2,492 2,326 2,696
2,382 2,566 2,511 2,808 2,470
2,693 2,912 3,545
Notes:
Data from row (1) will be made available on an all company weighted average frequency basis. Data will not be publicly released on an individual company basis.
All data provided in rows (2)-(9) will be considered public.
"Net" refers to net of reinsurance and salvage & subrogation.
Claim counts should be reported net of quota share reinsurance.
Accident Quarter
