Given their lower expense structure and the resulting ability to offer more competitive rates to price-sensitive consumers, direct auto writers continue to gain market share, according to Moody’s third-quarter financials review for U.S. P&C insurers.

In response Travelers outlined plans to lower expenses and set rates more competitively, and Allstate experienced its second-straight quarter of sequential auto policy-in-force growth for the first time in six years as they implemented more competitive auto rates and eased homeowners’ pricing after years of price increases. Large-scale agency writers, armed with strong infrastructure and long-standing customer relationships, will address competition from the directs by lowering operating costs and prices, according to the ratings firm.

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