Geico Leaps Forward in Tech Race: A New Era for Car Insurance

Geico, a unit of Berkshire Hathaway, is making significant technological advancements under Ajit Jain's guidance to enhance its risk-based pricing. With a shift towards telematics and workforce reductions, CEO Todd Combs has made Geico a more competitive player in the insurance industry.

Berkshire Hathaway's Geico car insurance unit is making strides in technology to better align rates with risk, according to Vice Chairman Ajit Jain. Speaking at the company's annual meeting, Jain highlighted Geico's progress, especially in telematics, which has boosted its competitiveness.

Geico demonstrated improved results in 2024 after a strategic pullback in new policy issuance and better premium management. Jain credits CEO Todd Combs for these achievements, including job cuts that streamlined operations. However, he cautions that further efforts are necessary for sustained growth.

Jain previously acknowledged Geico lagged in telematics at the 2023 meeting. However, by 2025, he hopes the insurer will catch up with competitors in data analytics for pricing risks, despite currently enjoying low operating costs.

(With inputs from agencies.)