Foremost Commission Cuts

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lonestar
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Foremost Commission Cuts

Post by lonestar »

I heard Foremost has lost their mind, and have announced commission cuts to the IA channel. Anyone not planning on rolling your entire Foremost book?
independent guy
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Re: Foremost Commission Cuts

Post by independent guy »

Well that's interesting... How did you hear about this?
paullong89
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Re: Foremost Commission Cuts

Post by paullong89 »

You could move it to Progressive and get even less.
OldIndyAgent
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Re: Foremost Commission Cuts

Post by OldIndyAgent »

Mr. Paul,
You already have a place to put it wink wink. But for anyone else in Missouri (outside of the metros St. Louis, KC, Columbia), private message me if you need one.
Ravisseur
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Re: Foremost Commission Cuts

Post by Ravisseur »

I'm in Florida and Foremost cut it to 9% new, 8% renewal. That's the lowest of any auto carrier I have ever represented in 22 years as an IA. Even Progressive is 12% and 10% for us. It's simply not profitable. Luckily, our book is not large with them but Foremost will certainly not get another piece of new business from us. I'm giving them the benefit of the doubt that management is not so stupid... I mean lacking in knowledge and experience as to think good agents will continue to send them business at this rate. I assume they have some other end in mind.
OldIndyAgent
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Re: Foremost Commission Cuts

Post by OldIndyAgent »

Rav,
Your right its called a RIF, Reduction in Force. Instead of raising rates Foremost can cut policies in force simply by cutting commissions. Thereby bypassing state approval and letting the market shift.

What do you think would have happened if State Farm had went to 5% homeowners new commission in Florida instead of asking to pull out?

Its sneaky and I suspect a hint that there may be issues that we haven't heard about.
lonestar
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Re: Foremost Commission Cuts

Post by lonestar »

It appears that Foremost is wanting to shed some policies. I would be rolling my book upon renewal if I had any Foremost policies in force...
Pathwayinsurance
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Re: Foremost Commission Cuts

Post by Pathwayinsurance »

Ravisseur wrote:I'm in Florida and Foremost cut it to 9% new, 8% renewal. That's the lowest of any auto carrier I have ever represented in 22 years as an IA. Even Progressive is 12% and 10% for us. It's simply not profitable. Luckily, our book is not large with them but Foremost will certainly not get another piece of new business from us. I'm giving them the benefit of the doubt that management is not so stupid... I mean lacking in knowledge and experience as to think good agents will continue to send them business at this rate. I assume they have some other end in mind.
They did the same thing here in Ohio, we simply no longer write business with them because It is not profitable to do so, Perhaps they are planning to go direct?
Jack Thomas - Agency Principal
513-662-7000
www.pathwayinsurance.net
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