Shares of Lemonade Inc. surged this week, as the company announced that its long-awaited auto insurance product was live in the state of Illinois.

U.S. equity markets hit new all-time highs during the week of November 5. The S&P 500 climbed 2% to a record 4,697.53, while the S&P 500 Insurance index slipped 1.38% to 542.19.

According to Deutsche Bank analyst Joshua Shanker, the personal automobile is a competitive market for Lemonade, as user-friendly price comparison tools and low prices clarify the market. There are many technically savvy customers who will be successful in seeking the lowest possible price, he said in a research note. However, tAn insurtech-focused insurer appears to be entering the personal auto insurance arena at a time when cardholders are struggling to price their businesses profitably, Shanker added.

Lemonade stocks were up 11.86% for the week.

Highlighting some of these struggles in the auto industry, the executives of The Progressive Corp. said the company was pulling back into the California auto insurance market due to insufficient rates in the face of increasing trends in frequency and severity. On a conference call, President and CEO Tricia Griffith said Progressive would cut marketing spending to slow growth in the Golden State until it can prove to the regulator that its rates are inadequate.

California has stood out from the rest of the country by not approving a single increase in auto insurance rates since April 2020. California’s insurance regulator insisted there was no justification for increasing rates. private auto insurance rates in the state due to the reduction in driving activity caused by the pandemic. However, Griffith said this week that California now surpasses the United States as a whole in car crash frequency.

Progressive stock rose 1.01% for the week.

In the third quarter, net income applicable to common shareholders of Allstate Corp. increase in net investment income.

CEO Tom Wilson on a conference call said automotive severity has been significantly affected by supply chain disruptions and rising prices for used vehicles and parts. Allstate responded by pushing for higher rates, receiving approval for increases in a dozen states in the third quarter, and implementing increases in eight states in the fourth quarter.

Rate hikes in the industry are sure to create more buyers for auto insurance, including those currently with Allstate, said Glenn Shapiro, President of Personal Property Liability.

Allstate shares ended down 5.26%.

Multi-line heavyweight American International Group Inc. this week reported third-quarter net income attributable to common shareholders of $ 1.66 billion, or $ 1.92 per share, a sharp increase from $ 281 million, or 32 cents a share a year ago.

AIG President and CEO Peter Zaffino said the insurer has managed to deliver strong results despite the backdrop of a “very active” disaster season and the lingering effects of the COVID-pandemic. 19. The company recorded disaster losses of $ 625 million for the third quarter, the vast majority from Hurricane Ida in the United States and flooding in Europe in July.

Zaffino said on a results conference call that the industry was facing the growing number of disproportionate catastrophic events due to climate change. Insurers need to make adjustments to their models and rates, given this phenomenon, he said.

AIG stock ended the week down 0.22%.