GEICO said Monday it’s backing the insurer of the two top executives of VSP Insurance, an insurance giant that’s been criticized for its performance in its coverage of Hurricane Maria.
The company said Markel Insurance had been chosen as the preferred carrier of VSp Insurance after a two-year evaluation process that included “the unique needs of the company.”
The move comes amid a broader shift in the company’s business strategy away from providing direct consumer protection to help its competitors survive, while aggressively pursuing revenue growth.
It also follows GEICO’s decision to cut the company out of its reinsurance business, in an effort to focus on other markets.GEICO said it’s also supporting the acquisition of a $20 billion reinsurance fund by the state of California for the next two years.
The decision to back Markel comes amid an effort by Markel to become more like the bigger, better-known insurer Anthem, which is expanding its reinsurer business.
GEICO has said that Anthem’s plan for an “insurance for life” approach has been a “game changer” in terms of the way it works.