Response Insurance is a direct sales company founded by Morgan Stanley in 1995. The company sells insurance to good drivers as well as home insurance and liability umbrella coverage. By limiting their market to drivers with better than average driving histories, the company is able to keep rates low and pass those savings on to their customers.
A.M. Best rates Response Insurance as B++, meaning they are a stable company but have suffered losses during the recent economic turmoil. The company is estimated to have between $50 and $100 million in assets. As an investment, interested parties should be encouraged to seek current information to determine what, if any, recent changes may affect long-term investments. Response is a much smaller company financially than many of their competitors, but they are also gaining market share quickly.
Response Insurance Reviews
Online surveys give Response a 62% overall approval rating, an outstanding score considering the negative bias demonstrated by many online respondents. Leading complaints include slow settlement time for home insurance claims. In the auto insurance division, customers express appreciation for the courtesy and timeliness demonstrated.
Response is licensed to provide insurance in 48 states, excluding only Hawaii and Massachusetts. The company is primarily represented through online sales, but policies are also distributed through independent agents and brokers. Being available online means that customers have 24/7 access to their accounts and customer service.
The Bottom Line
Response Insurance is a relatively new company but they are also growing rapidly. Their relatively low financial rating is more closely related to the company being newer and less established than many of their insurance competitors. Policyholders are well protected and investors are advised to review current financial reports from the company before making any significant long-term investments.