GM has filed to trademark “GM Financial Insurance Company,” GM Authority has learned. The trademark will likely be used in conjunction with the expansion of GM Financial as an underwriting insurance company.
The new trademark was filed on January 24th, 2023 with the United States Patent and Trademark Office (USPTO). The application was assigned serial number 97766215, and carries a Goods and Services description of “Reinsurance underwriting.”
The new trademark filing will likely be used in conjunction with an expansion of GM Financial, General Motors’ captive finance arm, as an underwriting insurance company. In fact, not only does GM Authority expect GM Financial to become an underwriting insurance company, but according to GM Authority sources, GM Financial and CEO Daniel E. Berce have been eyeing the space for a while now.
For those readers who may be unaware, an insurance underwriter serves as a way of evaluating and analyzing specific risks in insuring people and assets. This allows an underwriter to establish pricing for a risk, with insurance underwriters assuming the risk of a possible future event, thus charging a specific premium in exchange for reimbursing a client in the event of damage.
Additionally, GM Authority expects OnStar Insurance to eventually be underwritten by GM Financial. Presently, OnStar Insurance is underwritten by Homesite Group Incorporated, with the exception of in California where OnStar Insurance is currently underwritten by American Family Connect Property and Casualty Insurance Company.
OnStar Insurance officially became available in all 50 U.S. states in early 2022, with the service becoming one of the fastest nationwide rollouts of an auto insurance product. OnStar Insurance Services is a use-based insurance service specifically tailored for GM owners, offering things like rewards for safe driving habits thanks to embedded tracking technology in GM vehicles. OnStar Insurance is part of the larger GM Ecosystem, and integrates with other elements of the GM customer experience.
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Comments
I’ve had OnStar insurance for about a year now. It’s ~$100/yr cheaper than Progressive and the terms are better. Looking to get home insurance through OnStar in the future.
Quote taken from the story: “The new trademark was filed on January 24th, 2023 with the United States Patent and Trademark Office (USPTO). The application was assigned serial number 97766215, and carries a Goods and Services description of “Reinsurance underwriting.”
Most of the people here didn’t see the above and don’t know what “reinsurance underwriting” means. Go ask a former GE Financial Services employee if this is a good idea.
Different type of insurance. GE lost a ton on long term care, i.e. paying for nursing homes for old people. There’s a ton of actuarial risk because you have to predict for people in their 40’s how many go senile and how long it takes for them to die.
Car insurance is much more straightforward. Did you crash in 6 months or not? Look how rich Berkshire is off Geico. State Farm’s auto insurance turns profits of $500-1 billion per year.
On top of that, it makes a lot of sense for an automaker. When an insurer pays a claim for a damaged or totaled car, a good chunk of that is profit for an automaker. Ever see how much replacement parts cost? When they are related companies, it’s paying themselves money.
Onstar is an insurance agency. It puts the actual insurance policy in other real insurance companies. It is a marketing entity that gets paid a commission by a real insurance company on every policy that passes through it.
A lot of people in this comment section seem to forget GMAC offered insurance, in addition to mortgages, decades ago. This is nothing new.
Exactly there was MIC, Motors Insurance Corp back in the day too.
This entity of GM insured auto dealers. It never insured people and their cars.
Yes, I know what it was, it still survives in some form today as part of National General.
It did ensure people though, they underwrote the $10,000 life insurance policy that GM automatically offered new GM vehicle owners in the 80’s if you were killed in an accident in a GM car while wearing your seatbelt, you still find copies of the “policy” in the glove compartments of 80’s GM cars from time to time.
Reinsurance is not like private passenger auto or homeowners. It is the highest risk type of insurance.
GE lost a ton of money in reinsurance and got out of it actively in 2006 but continued to pay claims afterwards. If I am not mistaken the above article also states the OnStar does not underwrite or pay the claims on the auto or homeowner policies. Other companies are actually taking the risk on.
I was in the reinsurance business for 42 years.