Foremost Commission Cuts

[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]

Well that's interesting... How did you hear about this?

[paullong89]

You could move it to Progressive and get even less.

[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]

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]

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]

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]

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?