Those that follow the insurance space closely know that Wells Fargo & Co has been steadily divesting itself from insurance since 2015. That should mean that this recent announcement that Wells Fargo is closing their personal insurance lines business, should come as no surprise.
In December of 2015 Wells Fargo announced that they were going to sell their crop insurance business, Rural Community Insurance Services, and its subsidiary Rural Community Insurance Co., to Zurich American Insurance Company, a subsidiary of Zurich Insurance Group. The sale was finalized in 2016 and was the first major step towards Wells Fargo fulling removing itself from the insurance business.
Wells Fargo continued with their plan to divest from the insurance space in 2017 with their sale of its commercial insurance business to USI Insurance Services. USI acquired Wells Fargo’s Insurance Services USA, which included commercial insurance brokerage and consulting, employee benefits and property/casualty national practices, along with Safehold Special Risk, small business insurance, student insurance, individual health and private risk management insurance business lines.
That left Wells Fargo with a crop insurance broker business and personal insurance lines. On November 9, 2017 Wells Fargo agreed to sell their crop insurance broker business to Hub International Limited.
The final piece of the puzzle, personal insurance lines, which Wells Fargo recently announced they will be ending. They will begin to wind down their marketing efforts around that immediately.
Wells Fargo & Co has been looking to get out of the insurance business ever since they’ve been subjected to insurance-related probes surrounding accusations that they were signing many of their customers up for auto-insurance without the customer’s consent.