Beatrice Lang
Electric Insurance Company (EIC) is non-renewing its policies and no longer offering auto, home, boat, or personal umbrella insurance as of January 1, 2024. The company has been sold to RiverStone International, a company that specializes in managing discontinued insurance operations. This has left policyholders wondering what will happen to their insurance coverage in 2024. While the transition process is expected to be seamless for most policyholders, who can transition to Plymouth Rock Assurance or other carriers, some employees will be terminated and will receive severance benefits.
| Characteristics | Values |
|---|---|
| Electric Insurance Company's current status | Nonrenewing their policies from January 1, 2024 |
| Reason | Sold as part of GE's corporate restructuring |
| New owner | RiverStone International |
| New owner's speciality | Managing discontinued insurance operations |
| New owner's plan for staffing | Retain sufficient staffing levels to service the runoff of its legacy business |
| New rights owner | Plymouth Rock Assurance |
| Impact | Policyholders will need to transition to new carriers |
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What You'll Learn
Electric Insurance Company is not closing down
The company has been sold, and personal lines policy rights have been transferred to Plymouth Rock Assurance. This move is part of a larger corporate restructuring by General Electric (GE), which is exiting the insurance business and separating into three standalone companies. GE's insurance subsidiary, Electric Insurance, is no longer needed as part of this reorganization.
Eligible policyholders will be able to transition to Plymouth Rock or other carriers. While this may cause some disruption for current Electric Insurance customers, it is important to note that the company is not shutting down entirely. The transition process is expected to be relatively seamless for most impacted policyholders.
The sale of Electric Insurance to RiverStone International, a company specializing in managing discontinued insurance operations, will ensure that legacy liabilities are handled appropriately. RiverStone intends to retain sufficient staffing levels to service the runoff of its legacy business, including personal and commercial lines. While some employees may be impacted, they will receive notice and severance benefits.
In summary, while Electric Insurance is undergoing a strategic withdrawal from the insurance market and non-renewal of policies, it is not closing down completely. The company's exit is part of a larger corporate restructuring, and the transition process for policyholders is expected to be managed smoothly.
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The company was sold in 2024
Electric Insurance Company (EIC) was sold in 2024. The company's exit from the insurance business involved selling to RiverStone International, a specialist in managing discontinued insurance operations. The renewal rights for Electric's personal lines policies were granted to Plymouth Rock Assurance. This sale was part of a larger corporate restructuring by parent company GE, which saw the conglomerate separate into three stand-alone companies.
The sale of EIC meant that the company would no longer offer auto, home, boat, or personal umbrella insurance. This left policyholders wondering about their insurance coverage for 2024 and beyond. Eligible policyholders were given the option to transition to Plymouth Rock or other carriers.
The withdrawal plan submitted by Electric noted that the company had 280 employees at the time of the sale. RiverStone intended to retain sufficient staffing levels to service the runoff of its legacy business, which included personal and commercial lines. Employees who were not needed for servicing runoff claims received 60 days' notice of their termination and were provided with severance benefits through the General Electric Employee Benefits Program.
The impact of Electric's withdrawal from the Massachusetts automobile insurance market was considered significant enough to warrant a ten-day window for requesting a hearing on the matter. This period expired on February 19, 2024. The withdrawal plan included the non-renewal of all existing personal lines policies upon expiration and the cessation of new personal lines business in the state.
While Electric Insurance is no longer offering certain types of insurance, the company continues to be mentioned in insurance reviews as recently as 2025. These reviews highlight Electric's customer service and the ease of choosing a prebuilt insurance coverage package.
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Policyholders will be notified via certified mail
Electric Insurance Company (EIC) is non-renewing its policies as of January 1, 2024. The company has been sold, and it no longer offers auto, home, boat, or personal umbrella insurance. Policyholders will be notified via certified mail, as required by law. This notification must take place at least 30 days before the policy expiration date.
Each state has its own regulatory requirements, and policyholders are currently being notified of the changes. It is important for policyholders to take action and secure new insurance coverage for 2024. They can do this by contacting their state's Department of Insurance, which can help them locate local insurance agencies.
Policyholders of Electric Insurance Company can also consider transitioning to Plymouth Rock Assurance, which has acquired the personal lines policy rights. This transition should be relatively seamless for most impacted policyholders. However, it is always a good idea to explore other options and compare quotes from different insurance providers to find the best fit for your needs.
While this situation may cause some inconvenience and uncertainty for Electric Insurance Company policyholders, taking proactive steps such as tracking down the most current declarations page and exploring alternative insurance providers can help ensure continuous and adequate coverage. It is important to be prepared and informed when dealing with changes in insurance coverage to make the transition as smooth as possible.
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Policy rights transferred to Plymouth Rock Assurance
Electric Insurance Company (EIC) is non-renewing its policies as of January 1, 2024, and will no longer be offering auto, home, boat, or personal umbrella insurance. The company has been sold to RiverStone International, a company that specializes in managing discontinued insurance operations.
As part of the sale, the personal lines policy rights have been transferred to Plymouth Rock Assurance. This means that eligible policyholders can transition to Plymouth Rock or other carriers.
The sale of EIC to RiverStone International is part of a larger corporate restructuring by General Electric (GE). GE is separating its conglomerate into three stand-alone companies, with GE Healthcare already spun off in January 2023 and the remaining businesses set to split into separate energy and aviation entities in 2024.
The transition process for policyholders is expected to be relatively seamless, with Plymouth Rock having completed similar insurance transactions in the past. However, policyholders are advised to take proactive measures, such as tracking down their most current declarations page and exploring other local insurance agencies, to ensure they have the necessary coverage in place for 2024.
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The company will retain sufficient staffing levels
Electric Insurance Company (EIC) is not going out of business, but it has been sold and will no longer be offering auto, home, boat, or personal umbrella insurance as of January 1, 2024. The company has been acquired by RiverStone International, a specialist in managing discontinued insurance operations.
The new ownership intends to retain sufficient staffing levels to service the runoff of its legacy business (personal and commercial lines). Electric Insurance currently has 280 employees. Once the acquisition is complete, any employees not required to service the runoff claims will be given 60 days' notice of their termination and will receive severance benefits provided by the General Electric Employee Benefits Program.
The company's withdrawal plan outlines a strategic exit from the Massachusetts market, which includes the non-renewal of all existing personal lines policies upon expiration and the cessation of new personal lines business in the state. Eligible policyholders can transition to Plymouth Rock Assurance or other carriers.
The sale of Electric Insurance is part of a larger corporate restructuring by parent company GE, which is separating into three standalone companies. GE Healthcare was spun off in January 2023, and the remaining businesses will split into separate energy and aviation entities in 2024.
This transition process is expected to be relatively seamless for most impacted policyholders.
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Frequently asked questions
Yes, Electric Insurance Company (EIC) is going out of business. As of January 1, 2024, EIC is non-renewing their policies and will no longer offer auto, home, boat, or personal umbrella insurance.
If you are a policyholder with EIC, you should take action as soon as possible. First, find your most current declarations page and show it to other local agencies to secure coverage. You can use your state’s Department of Insurance website to help locate local insurance agencies.
General Electric is exiting the insurance business by selling its Electric Insurance Company to RiverStone International, which specializes in managing discontinued insurance operations.
Electric Insurance's personal lines policy rights are being transferred to Plymouth Rock Assurance. Eligible policyholders can transition to Plymouth Rock or other carriers.
