Posted On: June 24, 2008, 3:31 pm CDT

Posted By: Confused in Texas

I'm certain I missed something, but what is this article and Demotech talking about? I know that Nationwide is a National company. Who cares that Nationwide Mutual Fire Insurance Co just so happens not to write in a few states. Same thing with Mid-Century Insurance Company and Fire Insurance Exchange - both of which a sub-companies of Farmers Insurance Group/Zurich.

The article says these companies are "critically important to the industry". What? Are you trying to tell me that if Fire Insurance Exchange didn't exist, that Farmers wouldn't place that exact same business with another one of their companies? Get real.

Being a Texas agent, I am not familiar with the majority of the remaining players on this list, but I'm guessing there is a chance that some of these others are also sub-companies of other larger counterparts.

If that's so, the entire concept must be called into question. I realize the IJ does not limit itself to Independent Agencies, but the world would not even hiccup if Mid-Century blew up tonight. That biz would roll over to Farmers Insurance Exchange, or any of a dozen other shell companies that the parent company can use.

Super Regionals ...whoopty-doo.