Rate increases for “expected losses”? A profitable year for most carriers so they need even more profit from the policyholders in a difficult economy. Who are these guys?
State Farm’s ad is “double check”. Hmm! See how high our rates are. They have never paid back their overcharges going back to the end of the mold crisis and preferred to defy the TDI and a judge and it is still on appeal. Then, they raise rates yet again and increase deductibles on W&H to 2%. They are really good neighbors, aren’t they?
Planet, here you are sitting up there on the frozen tundra of Iowa running Texas down again. How do you like that Polar Vortex driving your temperatures down? Could it be Global Warming? We like it down here just fine even if we have to pay more for our HO coverage. At least we don’t live in the middle of a corn field.
This calls for a revolt! Let’s get all our fellow Texicans together at the Alamo! Grab yer finest coonskin cap and yer biggest belt buckle and let’s show Rick Perry who Boss Hogg is. How dare he bring all them there northerners jobs down here with their fancy speakin’, all that there book learnin’, and all those family trees that have branches. All so they can raise our rates. So what if we are in tornado bait alley.
REMEMBER THE ALAMO, REMEMBER THE ALAMO, REMEMBER THE ALAMO, LONG LIVE DAVEY CROCKETT!!!!
It would not be prudent to pay out more than they take in. Kudos to State Farm for not trying to make a huge profit like other companies and for paying claims as well as they do.
Hey, Bill. I guess you missed the part about State Farm having a 47.5% loss ratio in Texas. If they can’t make money with a 52.5% margin they don’t deserve to be in business.
I wouldn’t be so quick to praise them for pricing themselves out of the market. You might be looking for another job soon.
I agree Libby. Kind of hard for me to believe they have a 47.5% Loss Ratio in Texas and then say they are paying $1.11 in claims for every $1.00 in premium. That is quite a disparity. Perhaps their strategy will drive more of their customers our way. I think they want to reduce their roof exposure statewide.
Libby, most of our carriers pay Contingency if an Agency has a 51-56% Loss Ratio and meet the volume requirements. We were well under those Loss Ratios with all our carriers so we expect to do well on Contingency. I wonder how State Farm, Allstate & Farmers Agents are rewarded. I think all three are not doing quite so well. One market to quote, higher premiums, higher deductibles, lower commissions. Hmm, glad I am not a Captive.
Allstate pays a 4% bonus for meeting sales goals and having a loss ratio under 62%. That’s not COMBINED ratio, that’s a loss ratio. And, catastrophe claims are removed from that from that loss ratio.
By the way, most Allstate agents in Texas have multiple homeowners markets available to them…
If Allstate is that good to their agents, how come the agents formed a guild/union to deal with management on just those issues for commission, bonuses etc? I have not seen an Allstate agent with more than one market for Homeowners. Many of our markets have been contacted by desperate Allstate agents hoping for an appointment and have been rejected. I think it is a violation of the captive agreement to place business outside of Allstate. If they do it and get caught, they are dismissed.
January 7, 2014 at 11:45 am
lonestar says:
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Alarm bells just went off. State Farm agent posting alert!
Agree lonestar. I have been kicking their butt for some time now. Ever since they went into financial services and car loans, they have neglected their core P&C and have been in trouble. I only hope that our carriers do not all follow their lead in rate increases, but they probably will. Just hope the increases are less than they are asking for. Farmer’s is just a joke. Their agents are dumb, sell minimum limits Auto and undervalue homes to keep their prices down.
You’re right about that. We smoke State Farm’s home rates all the time. I don’t see how their customers aren’t yelling in the streets with the rates they charge.
It’s a revolving door when these policies come up for renewal. They all want to try and maintain that profit margin. Not only are the hail claims a concern but the rising cost of building materials.
mark, we spend a great deal of time re-marketing customers who have received rate increases. Replacement Cost guides are also rising and it amazes me how much they have changed and the difference between companies. Allstate and Farmers depress their Replacement Costs to keep their premiums from rising anymore than the do. I am sure glad I am not a captive. We at least have somewhere else to go.
State Farm increased my insurance 25% last July and are raising it another 25% this July. I guess Texas has to pay for all their losses.
I have no choice but to reduce my coverage. To old for all this.
Hey beat down, why are you still with State Farm if they have done this to you? There are a lot of carriers out there ready, willing and able to help you reduce your costs and keep your coverage at an acceptable level. I am amazed that the typical State Farm customer is still pretty loyal to them and it has to get bad for them to change.
Rate increases for “expected losses”? A profitable year for most carriers so they need even more profit from the policyholders in a difficult economy. Who are these guys?
Republicans.
Perhaps if they spent less on advertising, and more on educating their agents about what insurance is all about….
State Farm’s ad is “double check”. Hmm! See how high our rates are. They have never paid back their overcharges going back to the end of the mold crisis and preferred to defy the TDI and a judge and it is still on appeal. Then, they raise rates yet again and increase deductibles on W&H to 2%. They are really good neighbors, aren’t they?
Maybe they are under the belief that everything is bigger in Texas…including home insurance rates?
Planet, here you are sitting up there on the frozen tundra of Iowa running Texas down again. How do you like that Polar Vortex driving your temperatures down? Could it be Global Warming? We like it down here just fine even if we have to pay more for our HO coverage. At least we don’t live in the middle of a corn field.
This calls for a revolt! Let’s get all our fellow Texicans together at the Alamo! Grab yer finest coonskin cap and yer biggest belt buckle and let’s show Rick Perry who Boss Hogg is. How dare he bring all them there northerners jobs down here with their fancy speakin’, all that there book learnin’, and all those family trees that have branches. All so they can raise our rates. So what if we are in tornado bait alley.
REMEMBER THE ALAMO, REMEMBER THE ALAMO, REMEMBER THE ALAMO, LONG LIVE DAVEY CROCKETT!!!!
Hey mouth whatever. Boss Hogg had two daughters. One was Ima and one was Ura. Which one are you?
Ima pretty sure Ura Texican
It would not be prudent to pay out more than they take in. Kudos to State Farm for not trying to make a huge profit like other companies and for paying claims as well as they do.
Hey, Bill. I guess you missed the part about State Farm having a 47.5% loss ratio in Texas. If they can’t make money with a 52.5% margin they don’t deserve to be in business.
I wouldn’t be so quick to praise them for pricing themselves out of the market. You might be looking for another job soon.
I agree Libby. Kind of hard for me to believe they have a 47.5% Loss Ratio in Texas and then say they are paying $1.11 in claims for every $1.00 in premium. That is quite a disparity. Perhaps their strategy will drive more of their customers our way. I think they want to reduce their roof exposure statewide.
Libby, most of our carriers pay Contingency if an Agency has a 51-56% Loss Ratio and meet the volume requirements. We were well under those Loss Ratios with all our carriers so we expect to do well on Contingency. I wonder how State Farm, Allstate & Farmers Agents are rewarded. I think all three are not doing quite so well. One market to quote, higher premiums, higher deductibles, lower commissions. Hmm, glad I am not a Captive.
Allstate pays a 4% bonus for meeting sales goals and having a loss ratio under 62%. That’s not COMBINED ratio, that’s a loss ratio. And, catastrophe claims are removed from that from that loss ratio.
By the way, most Allstate agents in Texas have multiple homeowners markets available to them…
If Allstate is that good to their agents, how come the agents formed a guild/union to deal with management on just those issues for commission, bonuses etc? I have not seen an Allstate agent with more than one market for Homeowners. Many of our markets have been contacted by desperate Allstate agents hoping for an appointment and have been rejected. I think it is a violation of the captive agreement to place business outside of Allstate. If they do it and get caught, they are dismissed.
Alarm bells just went off. State Farm agent posting alert!
Agree lonestar. I have been kicking their butt for some time now. Ever since they went into financial services and car loans, they have neglected their core P&C and have been in trouble. I only hope that our carriers do not all follow their lead in rate increases, but they probably will. Just hope the increases are less than they are asking for. Farmer’s is just a joke. Their agents are dumb, sell minimum limits Auto and undervalue homes to keep their prices down.
You’re right about that. We smoke State Farm’s home rates all the time. I don’t see how their customers aren’t yelling in the streets with the rates they charge.
It’s a revolving door when these policies come up for renewal. They all want to try and maintain that profit margin. Not only are the hail claims a concern but the rising cost of building materials.
mark, we spend a great deal of time re-marketing customers who have received rate increases. Replacement Cost guides are also rising and it amazes me how much they have changed and the difference between companies. Allstate and Farmers depress their Replacement Costs to keep their premiums from rising anymore than the do. I am sure glad I am not a captive. We at least have somewhere else to go.
State Farm increased my insurance 25% last July and are raising it another 25% this July. I guess Texas has to pay for all their losses.
I have no choice but to reduce my coverage. To old for all this.
Hey beat down, why are you still with State Farm if they have done this to you? There are a lot of carriers out there ready, willing and able to help you reduce your costs and keep your coverage at an acceptable level. I am amazed that the typical State Farm customer is still pretty loyal to them and it has to get bad for them to change.