Farmers Expands Its Flexible Auto Package in Texas
Texas / South Central News • June 27, 2008
Effective July 1, Farmers Texas County Mutual is adding two new packages to its Farmers Flex package of options that can reward drivers for being accident-free.
Farmers Senior Vice President of ...
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Subject: RE: RE: A little late... or Wait & See
Posted On: June 27, 2008, 3:56 pm CDT
Posted By: Kent
Comment:
I'm a FIG agent and have been skeptical about the new options becoming available. Farmers' actuaries have been looking at these options before Allstate offered it but, couldn't develop an accurate rate structure for the cost of the options. Actuaries with every carrier has been observing Allstate's results. Note: the Farmers' options won't be available for every customer and some more experienced agents such as myself are doubting that many qualifying customers won't want to pay an extra premium to have the options.
Sometimes it is good to be first and sometimes not! I thank Allstate for starting first and developing some loss ratios for the options. I also thank Progressive for offering pet insurance (if injured in a car wreck) as it brings this risk to customer's attention - helps me sell an actual pet insurance policy that pays regardless of the reason for the pet's medical bills. But being first sometimes means that carriers cancel the entire program if they don't get the expected results. The fact that Farmers won't be first to offer these options also means that they probably won't drop them if they don't get the expected results but, will result in the options being changed to give the expected results.
With recent rate increases, many of my customers may want to lock in rates for a longer period. Considering the number of new customers that I am getting because their current carrier recently increased their rates may drive them my direction. Farmers rates may not be significantly better but, they may like the fact that they can lock in their rates.
Subject: RE: RE: A little late... or Wait & See
Sometimes it is good to be first and sometimes not! I thank Allstate for starting first and developing some loss ratios for the options. I also thank Progressive for offering pet insurance (if injured in a car wreck) as it brings this risk to customer's attention - helps me sell an actual pet insurance policy that pays regardless of the reason for the pet's medical bills. But being first sometimes means that carriers cancel the entire program if they don't get the expected results. The fact that Farmers won't be first to offer these options also means that they probably won't drop them if they don't get the expected results but, will result in the options being changed to give the expected results.
With recent rate increases, many of my customers may want to lock in rates for a longer period. Considering the number of new customers that I am getting because their current carrier recently increased their rates may drive them my direction. Farmers rates may not be significantly better but, they may like the fact that they can lock in their rates.