Farmers - your opinion

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Sundance
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Farmers - your opinion

Post by Sundance »

I know someone who is about to take the plunge from being a CSR at an independent agency to becoming a Farmers Agent. Any advice, any thoughts or words of wisdom on the subject?
kevinraz
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Farmers

Post by kevinraz »

Sundance, you only need to search the forums here for Farmers and you'll find quite a bit of info, little of it positive.

I'm an ex-Farmers agent and can tell you that though I don't harbor much ill will towards Farmers (having been gone almost 10 years) that few companies seem to generate such negative passion as Farmers Insurance Group.

While I'd urge caution I'll also say that many are successful with FIG. Encourage your friend to do the usual research and then evaluate if this is the best option.

Would also encourage them to check ufaa.com but that is frequently negative, although accurate.
Sundance
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Post by Sundance »

I think it will be hard for her to go from independent to a captive however she is pretty well set. Not sure what the enticement is other than owning her own which is why I was asking for opinions.

Thank you for your input.
Big Dog
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Post by Big Dog »

One word...don't

I think you'll find the overall opinion here would be to recommend that your friend NOT become a Farmers agent. As a company, they don't have a great reputation as far as settling claims.

If she wants to become a producer, find a good independent agency that will help train her both in coverage knowledge and requirements, and in how to handle clients.
Sundance
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Post by Sundance »

Rather amazing these comments...darn near feels like talking to clients (they all hate insurance) :wink:

As far as producing...she has the background, about 8 years of experience in the biz etc but wants to go on her own. She feels (although I haven't been able to look at any of her paper work) that the program they are offering is a good one and that this is her best shot at getting financial help etc.

I'm hoping (for her sake) she is right.
markl
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Thinking of becoming a Farmers agent

Post by markl »

Sundance, I highly recommend becoming a Farmers agent. The Company is positioned for incredible growth with a broad range of products to offer, a considerable investment in support programs for agents and its largest advertising investment in its history. If you choose not to join them, you'll regret it.
Sundance
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Post by Sundance »

Sounds like a cliche`, but this isn't for me, however it is refreshing to read a bit of positive, I wasn't sure what to tell her at this point...hated to just go in with negativs.

I presume you are a Farmers agent, if so, for how long?
Porter
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Post by Porter »

I would absolutely NOT recommend your friend go to Farmers. They have a horrible reputation, bad products and the worst claims service. Have your friend visit a few websites like farmersinsurancegroupsucks.com and farmers-online.com. Have your friend review Farmers products. In California their Auto, Home, and Life products are way overpriced and their home policy is named peril on the dwelling and contents. Last, have your friend check out your states DOI and see how many times Farmers has gotten fined recently. In California the DOI has fined Farmers millions for mishandling claims multiple times. Farmers' problems just keep getting worse and it seems their only answer is to add more agents. Let your friend know that having a captive contract is bad enough let alone a captive Farmers contract.
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slenard
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Re: Thinking of becoming a Farmers agent

Post by slenard »

markl wrote:Sundance, I highly recommend becoming a Farmers agent. The Company is positioned for incredible growth with a broad range of products to offer, a considerable investment in support programs for agents and its largest advertising investment in its history. If you choose not to join them, you'll regret it.
This response just makes me chuckle. :roll: I was a Farmers agent for over 20 years and finally made the switch about 4 years ago ...although not officially until a little over 2 years ago. Had to make my nest, first.

In Texas, Farmers has been "positioned for growth" since 1996 ...and, all they've done is loose market share and massive amounts of premium. That company dribble has been making the circle for over ten years now. Yes, they could be "positioned", but I think the position is undesirable to the recipient. :oops:

Is it the worst place in the world, probably not. Name recognition means a lot, but that's the ONLY thing they've got going for them. They are a prime example of the adage that there's no such thing as bad press. :shock:

Research, research, research. If you do, and your intelligent, you'll come to the correct decision. Good luck! :P

PS: You might check with your Department of Insurance to see how many agents have left Farmers in the past 5 years. In Texas, the number that's left in that time period greatly exceeds the entire number of active agents currently on the "team". What does that tell you??? I'm talking about thousands of men and women, most of whom were newbies, that were simply "churned and burned" with no care about the repercussions with their families. :twisted: It's disasterous!

Check it out in your State ...that's good for a chuckle at least.
kevinraz
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One more Farmers Post

Post by kevinraz »

Sundance, check out when Markl joined IJ - yesterday. Everyone else posting has been on for several years. Hmmmm.....

Slenard has a good point that I'll add to. My Career Agent class with Farmers had 15 people - less than 5 made it to two years. 1 made it to four years. My district had fifteen or so agents at one point, nearly all of them have left except for some extremely long term die hards who I think are riding out their books.

Also, encourage your friend to be very careful about their subsidy program - if you don't meet their production requirements you've got to pay back everything.

As for me I can't imagine how anyone could do what they & other captives want their agents to do - sell auto, home and life, can do. Then mix in mortgages and auto loans. Also throw in retirement planning and banking services for fun. Need a multitude of licenses to do all this.

If anyone out there can really wear all those hats well I'm very impressed and take my hat off to them in respect.
Jwebster
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Stay away from Farmers Ins Group

Post by Jwebster »

Biggest Mistake I have ever made in my career as an Agent. Company Micro manages the agencies and they own all of your business they claim you own it but don't be fooled read your contract or have your attorney read it at any given time they have the right to fire you for lack of production of which they can change month to month and they can transfer your business to who ever they want. If you really want to be an Independent I recommend scouting out Safeco, or Hanover or Erie. They have some fast track programs for startups. You will thank me later.
gregcw
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Re: Farmers - your opinion

Post by gregcw »

Sundance wrote:I know someone who is about to take the plunge from being a CSR at an independent agency to becoming a Farmers Agent. Any advice, any thoughts or words of wisdom on the subject?
Sundance.

I started out life with the Farmers Insurance Group company lies before going I/A. As an Insurance company they do an adequate job. If only their management could be trained to be truthful. I had so many lies told to me by the management team that I can't believe that it is not company policy.

In my service area there are currently 3 State Farm agents and 9 Farmers agents. When I started in the business with Farmers in 1982 there were 3 State Farm agents & 4 Farmers agents. Over the next 23 years State Farm has appointed 3 new agents and has had 2 retire to maintain 3 agents. Farmers, however, has appointed at least 35 agents and has only had 3 agents retire. There may be agents that Farmers has appointed that I am not aware of but there are still only 7 offices with 9 agents.

You are working with a District Manager (DM) with Farmers. I consider mine was a District 'Mangler' not Manager. I was appointed by Farmers for 7 years before we decided to part company. This was shortly after they were aquired by British American Tobacco U.S. With Farmers it is important to learn how to spell the word I-N-S-U-R-A-N-C-E. Farmers spends an inordinant amount of time on training to sell life insurance and prospecting but not nearly enough on INSURANCE TRAINING for property and casualty.

Jwebster says they "Micro manages the agencies". I don't think that is true because that implies that they do some "management" activities. I think that "They try to" needs to prescede that statement.

The down-side is that while you do OWN your book of business, the commission scedule is lower than an I/A, although that gap has narrowed over the years. You are compensated if a customer changes agents. The up-side is that you do not have to find a buyer. Farmers does give you a contract value, with bonuses for profitablity, based only on last years RENEWAL commissions NOT including New Business. An I/A can develop considerably more agency value than a Farmers agent
Gregcw
sanddog1
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farmers ins are looser

Post by sanddog1 »

Wow your absolutely correct, you will not fine much sympathy for the worst carrier in the USA. Run away as fast as you can, Zurich purchased farmers 15 years ago and still won't allow farmers captured agents to write business to their small BOP market. :wink:
Its better to ask forgiveness then permission
(just do it)
AgencyEquity
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Re: Thinking of becoming a Farmers agent

Post by AgencyEquity »

slenard wrote:
markl wrote:Sundance, I highly recommend becoming a Farmers agent. The Company is positioned for incredible growth with a broad range of products to offer, a considerable investment in support programs for agents and its largest advertising investment in its history. If you choose not to join them, you'll regret it.
Farmers is one of hundreds of options in a huge industry. It depends on what you are looking for, I personally think Farmers is good place to start a career and also provide good training. But Farmers has also been a launching pad to many who start an Independent Agency. Does that mean that all Farmers Agents become Independent? Of course not, but it's a good starting foundation for those who desire to become an Independent one agent one day.
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sacman
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Re: Farmers - your opinion

Post by sacman »

Agent Equity-

I've appreciate your posts over the last month or so, but I need to politely disagree with you on this one.

Farmers is NOT a good starting foundation. They are a potential financial disaster waiting to happen for a new agent.

The reason that so many Farmers agents are going IA is because Farmers is driving the agents out.
In most areas they are grossly overpriced and their policy coverages cannot compete with the competition.
Farmers agents are losing policies and households at an outrageous level and many long term agents have been given their 90 day notice. Farmers can cancel your contract, without cause, with a 90 day notice. The agent loses their agency and income but is responsible for any contractual debt( rent, phone, utilities, advertising etc)

For incoming agents they have strict quotas that much be met in order to continue to receive their subsidy.
If tenured agents are having difficulty writing new business how in the world can a newbie?
Farmers burns through agents faster than any other company that I am aware of and, unfortunately, many of those new agents leave owing thousands if not tens of thousands of dollars in subsidy repayment.

To those considering joining Farmers, read your contract VERY carefully and have it reviewed by an attorney.
The subsidy program is NOT a salary, it is a loan. If you don't hit your quotas you are required to pay it back.
Be careful.
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