Amica Mutual Insurance Company is the oldest mutual automobile
insurance company in the US, but the company now provides a variety
of personal insurance products, including auto, home, and life
policies, as well as marine and excess liability coverage. Amica
sells its policies directly to customers through some 45
offices throughout the US. The multi-line insurance company, in its
current incarnation, was formed in 1973 when Automobile Mutual
Insurance Company of America combined with Factory Mutual Liability
Insurance Company of America.
Property/casualty coverage is Amica's strong suit, and it offers
coverage ranging from renter's insurance to marine insurance on
yachts. Its life insurance and annuity offerings include
long-term care and life settlement products. The company had more
than 1.5 million policies in force and held assets of $4.9 billion
Amica Mutual underwrites most of its property/casualty policies,
with its Amica Property and Casualty Insurance and Amica
Lloyd's of Texas unit handling policies in New Jersey and Texas,
respectively. Life insurance is issued through the Amica Life
Insurance Company subsidiary. The company also has two insurance
brokerage subsidiaries: Amica General Agency, which serves
specialty customers across the US, and Amica General Insurance
Agency of California, which serves states in the West.
Authorized to do business throughout the US except Hawaii, the
company has 44 offices in 28 states. It does significant business
in the Northeast and in California, Florida, and Texas.
Sales and Marketing
Amica uses television and internet advertising, as well as
direct mail and social media campaigns, to market its products.
In fiscal 2015 revenue increased 8% to $2.1 billion thanks to
the company's 4.5% growth of property/casualty policies in force
and its 4.8% growth in life insurance policies in force. Net income
totaled $56.2 million that year, a 70% decline from the year
before. That drop was largely due to catastrophe losses incurred as
a result of the year's harsh winter (but was partially offset by
stronger investment returns).
Cash outflow from operations totaled $12.4 million in 2015,
versus a cash inflow of $156.5 million in 2014. Again, this was
primarily due to an increase in losses for the year.
Amica is focusing on expanding its portfolio of insurance
products, with an emphasis on growing its life insurance
The company has successfully expanded its policy sales
volumes through marketing initiatives and technology
enhancements in recent years. For example, Amica has upgraded its
phone systems, implemented an electronic claims filing system,
and launched a new website. It is also opening new regional offices
to enhance customer service.
To cut costs and provide better customer service, in 2014 the
company chose Semafone's secure payments technology to handle
payments taken over the telephone. The new payments system will be
implemented across Amica's 44 branches and customer call centers,
giving 1,500 customer service representatives the ability to
process secure telephone payments through the Semafone system.
The company traces its roots back to 1907 (when fire coverage
was a car owner's most important need due to the danger of
exploding gas tanks). Amica was founded in Providence by A. T.