If past behavior is any indication, they’ll limit this capacity to existing auto customers. Moreover they’ll scratch their heads when no one wants to take them up on their present rates.
The one thing State Farm used to be able to say is that they didn’t have a history of non-renewals. Without that card to play I find it hard to believe people will pay a premium for it.
State Farm agents now have access to multiple companies thru the clearinghouse program. Their own rates are extremely high, but how interesting will it be in a few years when they tell their agents to move that clearinghouse business over to State Farm. Not sure why they have access to other carriers if their business model says they are captive, but maybe that is the plan to see what the agents write, model it and then make them move it. I dont anticipate this new capacity will be noteworthy and not affect independents at all.
I don’t see that clearinghouse business going to State Farm. The rates are way too far apart. State Farm floated the idea of putting together another Florida PUP, a “Castle Key” if you will. This is what I see as their only direction if they are to keep the agents captive. Otherwise we could see a Nationwide or Allstate model at some point in the not too distant future.
Now they get to come in and hand pick the good stuff. Makes business sense to me.
If past behavior is any indication, they’ll limit this capacity to existing auto customers. Moreover they’ll scratch their heads when no one wants to take them up on their present rates.
The one thing State Farm used to be able to say is that they didn’t have a history of non-renewals. Without that card to play I find it hard to believe people will pay a premium for it.
State Farm agents now have access to multiple companies thru the clearinghouse program. Their own rates are extremely high, but how interesting will it be in a few years when they tell their agents to move that clearinghouse business over to State Farm. Not sure why they have access to other carriers if their business model says they are captive, but maybe that is the plan to see what the agents write, model it and then make them move it. I dont anticipate this new capacity will be noteworthy and not affect independents at all.
I don’t see that clearinghouse business going to State Farm. The rates are way too far apart. State Farm floated the idea of putting together another Florida PUP, a “Castle Key” if you will. This is what I see as their only direction if they are to keep the agents captive. Otherwise we could see a Nationwide or Allstate model at some point in the not too distant future.