Jerry, I am afraid you are off center on the comment about Zurich stuff switching to FIG on habitational. As a Texas FIG agent, I didn’t have a habitational program with FIG a year ago. Now I do thanks to Zurich. I have many more commercial programs available to me now from Zurich but, on FIG paper.
FIG has also turned over some computer programs over to experts from Foremost. I had a Foremost guy in my office one entire morning last week showing us new stuff on ECMS – our FIG customers data base.
KentU, you are apparently a new agent or maybe a DM, Jerry is correct, independant agents have been selling Farmers & Zurich products, but Farmers agents have very limited access to Zurich products.
Will be interesting to see what products are sold by whom. Farmers/Zurich is setting up personal lines to independants through the Foremost brand. Check out http://www.distinctchoice.com. i have a feeling that Farmers/Zurich will keep the 21st Century brand as a direct writer because they want the other distribution channel.
Anything has got to be better than the AIG (“rebranded” to 21st Century) agency auto product. They have had the worst customer service and claims service in our state for about 5 years now.
Farmers is running off most of their preferred auto business with continued rate increases; 21st Century is “cheap- auto-insurance.com”; which may be what Zurich has in mind for Farmers. You Farmers agents be sure to include your customers email addresses; as they are requesting on all applications.
It seems like since our economic problems, the forgein companies are buying up our land, businesses now insurance? When will it stop? Is there anything made in the USA anymore?
Texican, any one with there eyes open can see the direction they are going. and Yes, i’m a Farmers agent. Next comes Personal Insurance Express. It’s basically Progressive or Bristol West’s rating model. If you can type, you can rate. This can be done in a call center as no thought has to be given to rate class, drivers, etc. No need for agents.
Multiple distribution channels are the wave of the future. Any well informed person should realize Farmers will never do away with agency force, the are simply attempting to reach for more opportunity. After all, if you want a shirt from Macy’s you can buy from the store, internet or catalog.
This is great news! If it is the Farmers way they will raise their rates so high and screw the whole deal up. Foremost was a great little company until Farmers bought them. Now they are horrible as they has raised the rates 50% and cut coverage by 50%. Their motto is Can’t Can’t Can’t. We Can’t lower rates, we can’t write homes and we can’t keep market share. The state shows them to be number 2 in premium in Texas. I would like to see how many policies that is compared to the other large carriers. Their average rate per household is probably 35% higher.
Multiple distribution channels are the current wave…..the future has long since arrived and I have no fear of it. Data has already shown that direct to the consumer products are nowhere nearly as profitable to the carriers as their independent agency distribution system is. I’ve competed against 21st Century long before AIG rescued them from the Northridge EQ mess and I win some and lose little to them, and I have no fear of competing against them. They are just another GEICO. Zurich/Farmers still haven’t gotten their SBS unit squared away, so the potential for this acquisition carries little worry for me.
Larry, if I were you I would be careful what I say. You are on the outside. I am on the inside of Zurich and you have no idea of what you speak. The goal is to be the #1 insurer in North America. One way to do that is by buying up the competition. Do you have any idea how many companies they have bought and broke up in the last several years?
MOE, Zurich is not coming out of nowhere on this. Zurich was the first foriegn insurer to do business in the U.S. in 1912. As G stated in this string, Zurich has been aquiring companies left and right for the last several years, if not decades. The world is definitely becoming a global market and the economic situation is speeding it up. That is the way the market works, the strong become stronger when there is opportunity.
I’ve read the comments…and the comment from “G” kind of made me laugh a bit. With the exception of Travelers, there really isn’t a comapny out there right now as stable as Farmers. In our area we are really seeing Zurich reinvent themself in the small business area. Rumor has it that they will be bringing habitational and a restaurant package to the IA channel.
Be careful to just consider them a non factor so quickly.
I’m sure you will see the restaurant and habitational with zurich soon. It will be Farmers policy,rating, and coverage on Zurich paper as Farmers is successfull in both of those classes…especially restaurants. Farmers took over/bought Zurichs small business unit some time back and there has been a lot of speculation as to who will be selling what.
WHAT’S NEXT FOR FARMERS AGENTS? IT LOOKS LIKE 21ST CENTURY COULD BE IN DIRECT COMPETITION EVEN IF WE OWN IT. BRISTOL WEST IS ALREADY OUR DISCOUNT PRODUCT. THEY SAY A NEW AUTO PRODUCT IS COMING.. IS THIS IT? FARMERS IS GOING CRAZY WITH RATE INCREASES, CAN’T IMAGINE WHY WHEN WE’RE TOLD HOW WELL THINGS ARE GOING. WHAT IS ZURICH UP TO? AGENTS WILL REMAIN I’M SURE BUT IN WHAT CAPACITY? THE NEW AGENT CONTRACT MAKES THEM MORE EMPLOYEE THAN CONTRACTOR… WHAT GIVES? ANY IDEAS?
Insure.com is apparently Farmers future for auto insurance. You have already watched a lot of good clients wave bye; if you do not become proficient in home (hard to do with out multi policy discount), life and commercial, you will see the rest of your agency wave bye. Historically, personal auto has been 60% of my renewal income.
Auto is a BIG profit center in Calif and 21st C has a good reputation for low cost and good service and good claims in Calif. I am sure Zurich will keep 21st C under THEIR name and not give it to the Farmers Ins Grp to ruin, with top heavy management fees, poor customer service and poor claims.(See FarmersSucks.com) Also Zurich can then skim the same 18% off the top of 21st C as they do at FIG which, was $2.5 BILLION last year. (that was nearly 50% of Zurich’s world wide Business Operating Profits last year, as reported here on 02/05/09.) Now those poor Farmers agents are going to have to compete against their own company (Zurich) which, will have 35% lower prices on commercial AND auto !!
CA Agent, I don’t think so. when the rumor first started that Z was buying 21st it was rumored that Z would keep for themselves. Today, Farmers DM’s were on a nationwide conference call with Power Point Presentation about how it will be folded into the Farmers system. You also forgot about the lower prices Z has on Life Insurance.
Texican, I think your on the right track. Take advantage of your contract and find a niche outside of FIG to sell. whats the old saying “Never put all yoru eggs in one basket”.
This afternoon, I received an email from Zurich via FIG website that Farmers agents need to get ready to market 21st Century. Zurich knows they can get a lot more out of 21st Century by giving the policies to FIG agents and have us cross-sell our other products.
Texican, you could not be more wrong. I’m in my 28th year with Farmers. In the past two years, FIG has began writing some commercial risks that they never would have without the underwriting help of Zurich. These programs are underwritten with Zurich’s expertise but, put on FIG paper at issue. I already had other markets for many of these risks so, my problem is rewriting them with FIG. For the most part, the new FIG programs have very competitive rates. FIG is allowing me to include the customer’s personal lines premiums into the equation to qualify them for lower rate structures. This is making the difference in their rates and coverage being better than the non-FIG carrier I’ve had them placed with.
KentU & Texican. What Kent is saying is what I have been hearing WILL happen. I didnt know that it was already happening. I understand it will go both ways. Farmers garage and restaurant and commercial auto on Zurich paper. I havent’ heard what programs will come over from Zurich to Farmers paper. Either way, could be good for both companies/agents.
Jerry, it is difficult to say exactly what will evolve. However, I don’t see FIG garage and TBAP going to Zurich paper. In fact, the opposite has been evolving. FIG is now writting commerical auto risks that had been taboo my entire 28 year career with them – stuff like tow trucks that several independents I knew were writting for me. I just completed a 2 hour webinar this morning on upgrades to FIG restaurant program. They are broadening the coverages – like you would be with Zurich but, the policy continues to be on FIG paper.
I can’t see the commercial auto going from FIG to Zurich paper because that is where Farmers Insurance roots are at – insuring farm trucks. The head of FIG’s Texas operations spoke at a monthly meeting several months ago. He said the basic strategy is that FIG agents will continue to write mainly the smaller commercial accounts but, we have been given access to Commercial Brokerage Solutions for the larger commercial stuff that is now written mainly through independents.
U may be correct. I don’t see the tow truck/contract carrier expansion being Zurichs influence. I think Mahayse (sp) has been a good move and is aggressive about growing the commercial book. I don’t think that Z writes either unless its with some special program they have that I haven’t seen. Keep in mind that Texas is a different animal than the rest of the state. We haven’t had any enhancements to the Restaurant BOP yet. Who knows, the Texas policy might just be catching up with the rest of the country. Just came from a meeting re: 21st Century Auto. Not big news there.
Jerry, I am afraid you are off center on the comment about Zurich stuff switching to FIG on habitational. As a Texas FIG agent, I didn’t have a habitational program with FIG a year ago. Now I do thanks to Zurich. I have many more commercial programs available to me now from Zurich but, on FIG paper.
FIG has also turned over some computer programs over to experts from Foremost. I had a Foremost guy in my office one entire morning last week showing us new stuff on ECMS – our FIG customers data base.
KentU, you are apparently a new agent or maybe a DM, Jerry is correct, independant agents have been selling Farmers & Zurich products, but Farmers agents have very limited access to Zurich products.
Adds a direct element to their business, just curious what the state of California will think.
Bigger, but not better.
Will be interesting to see what products are sold by whom. Farmers/Zurich is setting up personal lines to independants through the Foremost brand. Check out http://www.distinctchoice.com. i have a feeling that Farmers/Zurich will keep the 21st Century brand as a direct writer because they want the other distribution channel.
Anything has got to be better than the AIG (“rebranded” to 21st Century) agency auto product. They have had the worst customer service and claims service in our state for about 5 years now.
Farmers is running off most of their preferred auto business with continued rate increases; 21st Century is “cheap- auto-insurance.com”; which may be what Zurich has in mind for Farmers. You Farmers agents be sure to include your customers email addresses; as they are requesting on all applications.
It seems like since our economic problems, the forgein companies are buying up our land, businesses now insurance? When will it stop? Is there anything made in the USA anymore?
Texican, any one with there eyes open can see the direction they are going. and Yes, i’m a Farmers agent. Next comes Personal Insurance Express. It’s basically Progressive or Bristol West’s rating model. If you can type, you can rate. This can be done in a call center as no thought has to be given to rate class, drivers, etc. No need for agents.
Multiple distribution channels are the wave of the future. Any well informed person should realize Farmers will never do away with agency force, the are simply attempting to reach for more opportunity. After all, if you want a shirt from Macy’s you can buy from the store, internet or catalog.
This is great news! If it is the Farmers way they will raise their rates so high and screw the whole deal up. Foremost was a great little company until Farmers bought them. Now they are horrible as they has raised the rates 50% and cut coverage by 50%. Their motto is Can’t Can’t Can’t. We Can’t lower rates, we can’t write homes and we can’t keep market share. The state shows them to be number 2 in premium in Texas. I would like to see how many policies that is compared to the other large carriers. Their average rate per household is probably 35% higher.
Multiple distribution channels are the current wave…..the future has long since arrived and I have no fear of it. Data has already shown that direct to the consumer products are nowhere nearly as profitable to the carriers as their independent agency distribution system is. I’ve competed against 21st Century long before AIG rescued them from the Northridge EQ mess and I win some and lose little to them, and I have no fear of competing against them. They are just another GEICO. Zurich/Farmers still haven’t gotten their SBS unit squared away, so the potential for this acquisition carries little worry for me.
Larry, if I were you I would be careful what I say. You are on the outside. I am on the inside of Zurich and you have no idea of what you speak. The goal is to be the #1 insurer in North America. One way to do that is by buying up the competition. Do you have any idea how many companies they have bought and broke up in the last several years?
MOE, Zurich is not coming out of nowhere on this. Zurich was the first foriegn insurer to do business in the U.S. in 1912. As G stated in this string, Zurich has been aquiring companies left and right for the last several years, if not decades. The world is definitely becoming a global market and the economic situation is speeding it up. That is the way the market works, the strong become stronger when there is opportunity.
I’ve read the comments…and the comment from “G” kind of made me laugh a bit. With the exception of Travelers, there really isn’t a comapny out there right now as stable as Farmers. In our area we are really seeing Zurich reinvent themself in the small business area. Rumor has it that they will be bringing habitational and a restaurant package to the IA channel.
Be careful to just consider them a non factor so quickly.
Steve,
I’m sure you will see the restaurant and habitational with zurich soon. It will be Farmers policy,rating, and coverage on Zurich paper as Farmers is successfull in both of those classes…especially restaurants. Farmers took over/bought Zurichs small business unit some time back and there has been a lot of speculation as to who will be selling what.
WHAT’S NEXT FOR FARMERS AGENTS? IT LOOKS LIKE 21ST CENTURY COULD BE IN DIRECT COMPETITION EVEN IF WE OWN IT. BRISTOL WEST IS ALREADY OUR DISCOUNT PRODUCT. THEY SAY A NEW AUTO PRODUCT IS COMING.. IS THIS IT? FARMERS IS GOING CRAZY WITH RATE INCREASES, CAN’T IMAGINE WHY WHEN WE’RE TOLD HOW WELL THINGS ARE GOING. WHAT IS ZURICH UP TO? AGENTS WILL REMAIN I’M SURE BUT IN WHAT CAPACITY? THE NEW AGENT CONTRACT MAKES THEM MORE EMPLOYEE THAN CONTRACTOR… WHAT GIVES? ANY IDEAS?
Insure.com is apparently Farmers future for auto insurance. You have already watched a lot of good clients wave bye; if you do not become proficient in home (hard to do with out multi policy discount), life and commercial, you will see the rest of your agency wave bye. Historically, personal auto has been 60% of my renewal income.
Auto is a BIG profit center in Calif and 21st C has a good reputation for low cost and good service and good claims in Calif. I am sure Zurich will keep 21st C under THEIR name and not give it to the Farmers Ins Grp to ruin, with top heavy management fees, poor customer service and poor claims.(See FarmersSucks.com) Also Zurich can then skim the same 18% off the top of 21st C as they do at FIG which, was $2.5 BILLION last year. (that was nearly 50% of Zurich’s world wide Business Operating Profits last year, as reported here on 02/05/09.) Now those poor Farmers agents are going to have to compete against their own company (Zurich) which, will have 35% lower prices on commercial AND auto !!
CA Agent, I don’t think so. when the rumor first started that Z was buying 21st it was rumored that Z would keep for themselves. Today, Farmers DM’s were on a nationwide conference call with Power Point Presentation about how it will be folded into the Farmers system. You also forgot about the lower prices Z has on Life Insurance.
Texican, I think your on the right track. Take advantage of your contract and find a niche outside of FIG to sell. whats the old saying “Never put all yoru eggs in one basket”.
This afternoon, I received an email from Zurich via FIG website that Farmers agents need to get ready to market 21st Century. Zurich knows they can get a lot more out of 21st Century by giving the policies to FIG agents and have us cross-sell our other products.
Texican, you could not be more wrong. I’m in my 28th year with Farmers. In the past two years, FIG has began writing some commercial risks that they never would have without the underwriting help of Zurich. These programs are underwritten with Zurich’s expertise but, put on FIG paper at issue. I already had other markets for many of these risks so, my problem is rewriting them with FIG. For the most part, the new FIG programs have very competitive rates. FIG is allowing me to include the customer’s personal lines premiums into the equation to qualify them for lower rate structures. This is making the difference in their rates and coverage being better than the non-FIG carrier I’ve had them placed with.
KentU & Texican. What Kent is saying is what I have been hearing WILL happen. I didnt know that it was already happening. I understand it will go both ways. Farmers garage and restaurant and commercial auto on Zurich paper. I havent’ heard what programs will come over from Zurich to Farmers paper. Either way, could be good for both companies/agents.
Jerry, it is difficult to say exactly what will evolve. However, I don’t see FIG garage and TBAP going to Zurich paper. In fact, the opposite has been evolving. FIG is now writting commerical auto risks that had been taboo my entire 28 year career with them – stuff like tow trucks that several independents I knew were writting for me. I just completed a 2 hour webinar this morning on upgrades to FIG restaurant program. They are broadening the coverages – like you would be with Zurich but, the policy continues to be on FIG paper.
I can’t see the commercial auto going from FIG to Zurich paper because that is where Farmers Insurance roots are at – insuring farm trucks. The head of FIG’s Texas operations spoke at a monthly meeting several months ago. He said the basic strategy is that FIG agents will continue to write mainly the smaller commercial accounts but, we have been given access to Commercial Brokerage Solutions for the larger commercial stuff that is now written mainly through independents.
Kent,
U may be correct. I don’t see the tow truck/contract carrier expansion being Zurichs influence. I think Mahayse (sp) has been a good move and is aggressive about growing the commercial book. I don’t think that Z writes either unless its with some special program they have that I haven’t seen. Keep in mind that Texas is a different animal than the rest of the state. We haven’t had any enhancements to the Restaurant BOP yet. Who knows, the Texas policy might just be catching up with the rest of the country. Just came from a meeting re: 21st Century Auto. Not big news there.