Erie Insurance Exchange has rolled down lots of different insurance roads since its founding as a Pennsylvania auto insurer. As a subscriber-owned insurer, Erie Insurance Exchange offers personal auto, property, and life insurance through Erie Family Life Insurance, the publicly-traded Erie Indemnity, and other operating subsidiaries. The group also offers commercial coverage (including auto, liability, and workers' compensation) for smaller businesses. Doing business across Pennsylvania and in about 10 other eastern and Midwestern states and in Canada, Erie Insurance Exchange sells its products through thousands of independent agencies.
The company's structure is somewhat convoluted -- technically the policyholders own Erie Insurance Exchange, but unlike a mutual insurer, the company doesn't return a portion of profits to policyholders. Erie Indemnity and its subsidiaries and affiliates operate Erie Insurance Exchange and also operate collectively with Erie Insurance Exchange under the name Erie Insurance Group. Erie Indemnity is the managing attorney-in-fact for the subscribers (policyholders) at the Erie Insurance Exchange, which owns all property and casualty and life insurance operations. Erie Indemnity's primary source of revenues are the fees earned from the Erie Insurance Exchange for delivering management services. In 2012 that amount was 25% of Erie Insurance Exchange's direct written premiums.
Erie Insurance Exchange has operations in the US and Canada.
Since its formation, the company has slowly but steadily expanded its territory; however, for the most part, it elects to concentrate on strengthening its presence in areas it already serves. It has done this, in part, by expanding its product offerings to include a wide variety of insurance products. Along with the standard property and casualty lines, the company also provides renters insurance and boat coverage, as well as life and retirement services including investment advice, retirement accounts, and annuities.
Erie Insurance Exchange was formed in 1925 as a Pennsylvania auto insurer. – less