N.Y., Conn., N.J. Agents Pick Best-Performing Insurance Companies

Asked to evaluate insurers in 16 performance categories, agents in the tri-state region of Connecticut, New York and New Jersey rated 14 insurance companies as overall best performers.

The winners, in no particular order, for overall best included: Progressive, Atlantic Mutual, NLC Insurance Companies, Peerless, The Hartford, Erie Insurance Group, Sterling Insurance, St. Paul Travelers, Middlesex Mutual, Allstate/Encompass, Selective, FMI Group, Fireman’s Fund and Philadelphia Contributionship Group.

Those carriers were the victors in the 2005 annual Company Performance Survey by the Professional Insurance Agents of Connecticut, New York and New Jersey.

The PIA Company Performance Survey asked PIA member agents to rank insurance companies or company business units in a number of different categories including products and pricing; treatment of agents; marketing support; technology; claims handling; service and underwriting. Agents were asked to rate many companies’ commercial lines and personal lines performance separately.

“This survey was developed to address the key performance items insurance agents were concerned about,” said David Dickson, the PIANY Company Relations Committee chairman. “Our goal is to objectively communicate those strengths and weaknesses in the working relationships between independent agents and insurance companies and to use the results of the survey to foster stronger business ties with each other.”

New York agents ranked 54 insurers; Connecticut agents, 30; and New Jersey, 46. The association said there were more companies included in each state than in previous years. PIA selects the companies to be included in the survey based on the number of members representing them and in their market share in each state.

Companies added

“Interest in this survey from both insurance agents and companies increases each year,” said N. Stephen Ruchman, president of PIANY. “This year a number of companies contacted us asking if they meet the criteria to be included in the survey, which has continued to grow in agents’ participation and company awareness since it was originally launched in 2003.”

The Connecticut survey was launched in 2002. This was the first year for the New Jersey survey.

“The insurance agent/company relationship is an important part of the insurance industry,” said Louis Beckerman, president of PIANJ. “We introduced this survey because it’s important to determine where the strengths and weaknesses lie in this relationship so agents and companies can better serve each other.”

PIANY added 18 insurance companies or company units to its third annual Company Performance Survey and nearly 500 agents participated. Two of last year’s top five companies, Chubb Group’s personal lines unit and Progressive, again ranked among the top performers. They were joined this year by Atlantic Mutual. All three ranked among the top five companies on nine or more of the survey’s 16 performance items.

By overall scores, New York’s five top-scoring company units for all performance items combined are Chubb (personal), Atlantic Mutual, Progressive, Erie Insurance Group and Sterling. All scored 63 or higher out of a possible 80.

Other companies included in the survey were: ACE Group/Allied; AIG; Associated Mutual; CNA/Continental Casualty; Countrywide; Dryden Mutual; Encompass; Erie & Niagara; Farmers Group; GMAC; Great American; Greater New York Mutual; Hanover; Harleysville; The Hartford; Kemper/Unitrin; Magna Carta/PSM; Merchants Mutual; National Grange; New York Mutual Underwriters; NOVA Casualty; Ohio Casualty; OneBeacon; Peerless; Safeco; Selective; St. Paul Travelers; Tower; Utica First; Utica National and Zurich North America.

Connecticut’s Top Five

Overall, PIACT found much consistency in agents’ views of their companies. Of the highest performers this year, about 55 percent were repeating their top-five showing for the same performance item last year; and about 35 percent have kept their top spots for three years running.

Companies that consistently impressed Connecticut agents with their strong performance in a variety of areas since the survey’s launch in 2002 are Chubb Group, NLC Insurance Companies and Progressive, which again placed among the survey’s top five companies in multiple performance categories.

Overall top-scoring companies in 2005 in Connecticut for all performance items combined, earning a total score of 60 or higher, are NLC (commercial and personal), Chubb Group (commercial and personal), Progressive, St. Paul Travelers (commercial), Peerless (commercial), The Hartford (commercial) and Middlesex Mutual.

This year PIACT added five companies, AIG, Andover Companies, CNA/ Continental Casualty and Quincy Mutual to its survey. Other companies included in the survey were Great American Insurance Group, Hanover, Kemper/Unitrin, Metropolitan Auto & Home, OneBeacon, Patrons Mutual, Safeco and Zurich North America.

New Jersey’s Top Five

This was the first survey by PIANJ. In terms of versatility, Chubb Group and Andover Companies ranked consistently strong, scoring among the top five companies on nine or more of the 16 performance items.

Overall top-scoring companies in New Jersey for all performance items combined, with a total score of more than 60, are: Chubb Group (personal), Peerless, Allstate/Encompass, Selective, Atlantic Mutual, Andover Companies, FMI Group, Fireman’s Fund and Philadelphia Contributionship Group.

Other companies included in the New Jersey survey were: ACE Group/Allied; AIG; ARI; Camden Fire; Clarendon (HDI); CNA/Continental Casualty; Crum & Forester Group; Cumberland Insurance Group; Farmers of Flemington; Farmers of Salem; First Trenton; Foremost; Great American Insurance Group; Greater New York; Hanover; Harleysville; The Hartford; IFA Insurance Co.; Magna Carta/PSM; Mercer Insurance Group; Ohio Casualty; OneBeacon; Palisades Group; Parkway; Penn National; Preserver Group; Proformance; Quincy Mutual; Rutgers Casualty; Sirius America; St. Paul Travelers; Utica National and Zurich North America.

Treatment of agents

In addition to products, pricing, claims handling and other criteria, the surveys’ 16 performance criteria also included a question of how well a company treats its independent agents. Agents were asked how strongly they agree with three descriptions as applying to a company: whether the company is dedicated to independent agency system; whether it offers attractive agency compensation, and whether it communicates effectively.

In the Empire State, New York Central Mutual, Security Mutual and Sterling scored in the top five on all three items, while Andover Companies, Atlantic Mutual, National Grange (commercial) and Preferred Mutual rated among the top five carriers on two of these performance items.

In Connecticut, Middlesex Mutual and NLC (commercial and personal) scored in the top five on all three items, while Andover Cos. and Patrons Mutual rated among the top five carriers on two of these items.

Finally, in New Jersey, Andover Companies and Atlantic Mutual scored in the top five on all three items, while Chubb (personal), Farmers of Salem, FMI Group and Peerless rated among the top five carriers on two of these performance items.

The entire survey and results are online at www.piaonline.org.

‘We introduced this survey because it’s important to determine where the strengths and weaknesses lie in this relationship so agents and companies can better serve each other.’

Topics Carriers New York Agencies New Jersey Connecticut Chubb Casualty