I have heard talks about the new agents contract, I personally think you should allow agents to become independant, you have been slowly putting agents out of bussiness through your (so called) rate adjustments. we have continued to loose our preferred clients; pretty soon you will be complaining about underwriting losses due to putting us in an adverse selection basis. why doesn’t FIG tell their agents what the big picture is; most would be willing to bail while they have something left; or maybe that’s what you are trying to prevent.
well, w/the this aquistiion, and the other products being sold, will it be enough to pay the taxpayers back the $180 billion? it does not look like it is. how long will it take for AIG to give us back our taxpayers? i hope that farmers w/the $100 million of debt, it can make it back. let’s hope that the debt does not weigh itself down.
hehehehehehehehehhehehehehehehehe. That is the funniest thing I’ve heard in two days. This is the Company that Farmers DM’s have made fun of since the bailout.
Well… excellent, we “loaned” them $170 Billion, they sell off 21st Century for 1.9 Billion… now if they can just find someone willing to pay $168 Billion for the coffee machine in the breakroom we’re all squared away.
is that like the military that buys the toilet seat for $300? um…um… but remember, this was not the part that was in a deficit…. but if you look, many parts of AIG is being sold, question – will there be enough money to payback the complete LOAN!
What are the Farmers agents going to cross sell? One fact still remains, Farmers has the highest price and if the customer is with 21st Century they are price shopper’s. I’m glad I went IA.
“exclusive” can refer to products that are only available from select distributors or retailers, and have never been released before, or only at a particular event. Current FIG agent’s unless you sign the new contract you will now be in competition with the agents that signed your NEW AAA. I hope you understand this was a great calculated move for Zurich, not the agents, this might be your last chance to get out or sign the new AAA. Wake up, FIG has no intention of allowing it’s agency force to stay independent, you will be exclusive or they will force you out….
Hey Jude – I truly appreciate your positive attitude, but believe me your company just shot you in the back for the money. This product AIG will only be given to “exclusive agents” so unless you paln on signing the new AAA, the exclusive agents for FIG will now be your competion. Jude I am truly sorry (very successful IA ex FIG agent) but this can not be anything but a sad song……..
If I may add my 2 cents, I believe Zurich/ Farmers is acquiring the solvent subsidiary of AIG (Personal Lines Division). These components have never stopped making money. You confuse them with the guys in London….
I heard that the book that FIG got for $1.9B is actually worth about $4B total. I have been hearing whispers about this for about a month now but last I heard the Fed’s blocked the sale becuase FIG wanted to get it for $2B and the Fed wanted more for it. Sorry Washington boys, when you need money, your stuff is not going to sell for what you think it should. Be happy that someone wanted it!
Another company is too big to fail being allowed to buy another that was too big to fail – I don’t get it. Soon there will be only one company to buy insurance from, one grocery chain to buy groceries from etc. and they’ll all be known as U.S. Farmers, U.S. Walmart, U.S. Exxon etc.. Break it up! No consolidation of large companies, allow natural selection to work!
So…Farmers agents are excited that their company has purchased a direct marketing unit designed to take them out of the sales process….now we know why this industry has problems.
As an agent with Farmers for 17+ years, have seen good and bad. This can only be a good thing, from everything I’ve read…for agents, we get some revenue from online sales, and opportunities to cross sell…for the company, we get instant access to direct markets, new markets (east coast) on an already successful platform (anyone who works on dashboard KNOWS that a successful internet platform is worth the 1.9billion alone!)
Great Job, Zurich/Farmers
This is gonna get even better in about a year. Have fun, figsters. If you’re an agent, this is nothing but bad news for you. Especially, if you are one of those Indy AIG agents that’s having YOUR book rolled over. What’s going to happen with those policies and policy holders?
I just say – shame on you all of you who are Farmers agents and are dissing this acquisition! What have you done to grow your businesses in the past 10 years? I’ve been in this industry for over 30 years and have seen many many changes. Have you been out pounding the pavement? Or…are you just waiting for your phone to ring off the hook from referrals? (which is NOT going to happen in this market). If Farmers has 1.9 billion to acquire a company that has a client base that could be good for your business, do you think that we are going away any time soon? I think not. People can say what they want – and many people have had bad experiences with an insurance company, mainly due to not understanding what insurance is or what they agree to in a contract. But I believe that Farmers has been responsive in extreme disasters and will continue to be strong in the future. So before dissing this – think about it. What kind of changes have we gone through in the past – and what kind of positive things/changes do we want to see in the future?
All you Farmers agent should be very excited about your current auto clients having access to 21st Century’s 35% lower auto rates !! When you re-write them to 21st C and get 1%-2% commission, your clients will “Love their Agent” finally.
Oh… I’m sorry… I stand corrected, I guess I just don’t have a great deal of knowledge about how things work when the Feds start throwing around hundreds of billions of dollars to private companies.
Okay… I guess it’s not so bad then… so let me make sure I understand correctly: my tax dollars extended a $170 Billion “line of credit” to AIG of which they’ve availed themselves of the paltry sum of $80 Billion (of which $37.5 Billion was sent to foriegn banks with another $28.7 Billion to domestic financial companies*).
Wow… I’m glad I’ve been set straight… look guys… that coffee pot is on sale now… with the 21st Century sale they only have to find a buyer willing to pay $78 Billion for that – hell, if they toss in the microwave from that breakroom I might see if Congress can extend me a “Line of Credit” too.
Gee whiz…now I know why Farmers has been taking such huge and constant rate increases. Silly me, I have always been told that it was due to not being profitable.
Wow, and now we can offer the people (who left Farmers to go with AIG), additional products which are priced higher than the rest of the competion.
I have been an agent for 19yrs. with many ups and downs. All you negative agents just quit while you still have some contract value. Your sour attitude is poisioniong your own well and killing your possible growth either pif or gwp. If you think the company is so bad quit and give the positive agents your book.
I have been an agent for 19yrs. with many ups and downs. All you negative agents just quit while you still have some contract value. Your sour attitude is poisioniong your own well and killing your possible growth either pif or gwp. If you think the company is so bad quit and give the positive agents your book.
Since the tie quote comes from the Farmers CEO, I think that really will add up to still being #5, although much closer. No such thing as a tie, rambo.
As someone has previously mentioned, another round of koolaid’s on Mr. Woudstra.
I know it’s hard to believe, but here’s another example of a supposedly successful FIG agent that’s got nothing better to do than to whine about the whiners. What’s it to him?
Well…
Just for the record, Jake-Leg-Larry, not everybody is stuck with no other options, like you. Thank goodness I wasn’t. After 22 years of experiencing their ups and downs (as you call it …more downs that ups, I can assure you), I finally had my fill and set up for departure several years ago.
Best decision I ever made. But, having said that, it was not an easy feat to walk away from a large book of business with only the one option that was contractually given to me at the time of signing my up for my chance at Owning My Own Business (as they say) with so little vision of reality back then.
What was that one option? Take contract value and do not compete – or else! Well, had I really owned my own business, I would have gladly shot them the finger, left my CV on the table and competed for my clientele. But at the happy moment of signing, that was simply envisioned as a contractual retirement option – oh yeah.
Such is life – live and learn.
For those of you that are still stuck, you are turning more vulture-like every single day. And with good reason. This guy is a perfect example. I would say that at least 85% of the FIG agents that are pointed to as being successful are continually receiving those books of business from the sweat of other good agent’s backs. Otherwise, they would fail just as miserably. How do they get to be the chosen ones? Generally, by wiping their DM’s hind side? Or, informing on fellow agents. Or, selling lots of life insurance (the term lots is certainly relative, because even the best Farmers Life agents could not hold a candle to a real Life agent).
So, keep popping off, Mr. Big-Shot. One day, there won’t be any more bodies left to feed off, and you will find yourself in the same bone yard.
Farmers just purchased the worst claims dept. that ever existed. I hope Farmers takes over the claims handling, otherwise they married their worst nightmare – spouse who is a constant cheater.
Dear Texican; Your comment for all of us to wait until our homeowners rates increase to where we can’t sell them… You must not get out of Texas too often.
The only states where Farmers rates are competative now are California, Arizona, Texas, maybe Nevada. The rest of the states, are competative in about 2-3% of the customers. We ARE already there with the rates.
Enjoy your success in Texas cause all of the rest of us have been losing loyal friends and clients 100 to 200 policies per year for the last 5 yrs plus due to the rates.
Oh, and an addidtional note to Mr Larry Mc…I also am a 30 yr agent and I am not a whiner. Ask my wife if I have been sitting on my behind waiting for the phone to ring since she hardly sees me after working 12-14 hour days, 6 days a week constantly.
This is about opening your eyes to realities for business planning and not just going along and drinking FIG’s Kool-Aid.
Many of us out there have poured our heart and souls into this business. We have grown and prospered due to our hard work only to have FIG change their philosophy due to Zurich.
Now our books of business are leaving in droves due to Zurich only looking at bringing in more dollars for their bottom line at an unacceptable cost to the agents and most importantly to the customer.
Time to go truly IA. You can have my policies if there are any left.
I for one think this may prove to have some validity. Cake’s just barely in the oven, let’s wait and give it a chance. My major concern is they appear to be going to let AIG remain in the book to ‘service’ the claims. With that bunch of crooks at AIG, I would have escorted them to the door under guard. I suppose Mr Woodstra has complete faith that they won’t raid 21’s books to refer to their remaining personal lines as leads?
Well if all of you who are so “sure” that Farmers is going to get rid of all of their agents and do all their business online and direct – then hurry (!) and go independent so that the ones who are willing to stick it out can have your business!
Texican-I am glad that you cleared this up-Farmers is in business to keep you happy. Jeez what a whiner.
Farmers is growing and making money so what is your beef? Its easy to sell with the lowest prices on the street, but then carriers who do that usually end up broke. Be glad you are representing a financaly healthy company that can afford to pay for a Hurricane Ike and not do the el foldo-or was that not in your neck of the woods there Texican.
Sell what you have to sell or go down the street-I am happy to be working for a company that is profitable, making money, can pay big claims-and oh by the way, have enough $$$$ to make a major aquisition.
I would also say that whether or not Farmers goes diect will have no bearing on your success. If you demonstrate value other than to point out a cheaper price then you’ll do pretty well. If you can’t do that, then you’ll surely struggle.
Here is the common sense of this, many agents will leave and go IA (that’s already happening)but now instead of paying 50% to service these clients FIG will offer them direct at 40% less. Why on earth would they not convert something they own, this will make it harder to rewrite for the old agent. The agents hanging around will now get the homes at 50% and will service the autos for 0%. gooooooooooooooood luck……..
To Carolyn, It’s refreshing to read someone who knows the difference between AIG financial and its’ insurance co 21st Century. Totally separate entities. Don’t you just love the way the media lumps them together?
From what I understand, 21stC will keep its’ auto biz and the FIE agents (only, not the IAs) will get to cross sell.
I read somewhere that AIG bought 21st Century back in 2007. Didn’t Mercury Ins own them before? I sort of remember that in CA. I could be mistaken.
this acquisition is simply a way for the Farmers Insuance Group to position themselves to be able to shift thier business model from agency driven to direct writers if they choose. Once complete, it will be as simple as adding another tab on the 21st century webpage for homeowners, life and small business products. And in the process, squeeze out all of the agency force that remains.
Years ago “they” said 1-800 & the internet would put us agents out of business. It hasn’t happened & it won’t happen. Consumers either already know or find out the hard way, that insurance is a strange product & without a professionals help the consumer ends up with lots of problems. As long as you’re providing value to your customers you will stay in business.
Not Worried – you got that right. I have had many clients come back after doing the “online” gig and say they will never NOT have an agent again. People are finding out that premium is not the bottomline all the time.
I attended a FIG meeting yesterday. A VP from home office and the north Texas Regional Manager gave premininarly facts. They acknowledged that internet shopping is simply a reality and we are fortunate to be able to acquire an established carrier rather than developing one. However, they said the retention rate for internet sold insurance policies is low compared to agent sold policies. FIG will allow agents to cross sell 21st Cent customers for other lines. They will then become our customers and we’ll receive a service commission. If we rewrite them to a FIG auto policy we receive 50% of normal commissions.
During the Q&A session I told the FIG representatives that I expect to receive full commissions if I rewrite a 21st Cen policy to FIG if I can show that I was simply recovering a former customer and that I still have other FIG policies with them. They said I was not the only agent to comment about this and that particulars will be worked out later. This should not be a problem in that my staff will be reinstating their old policies – not starting new ones.
This acquistion has months of red tape to go through.
I love the way Farmers agents often gloss over so many things. Not sure if that was your intention, or not. So, I’m not trying to pick on you in particular.
For Farmers Insurance to tell their agents, who they continually claim utmost commitment towards, that if they manage to show these 21st Century clients that there is actual value to having a Farmers policy (which comes with a Farmers agents as a bonus, remember), that would be an outstanding accomplishment that should be noticed and rewarded …even if your pricing was somewhat close. In actuality, the price difference in most areas of the country will be tremendous, thus making that theoretical accomplishment even more remarkable and worthy of reward from your company.
You should get another plaque …really.
Instead, Farmers wants to penalize you for raiding THEIR business. They don’t care about YOU in the slightest. They would rather penalize you for showing that value and building the Farmers brand.
Why?
Yes, I know they just plopped down a BILLION+ dollars. But, they spend a lot on advertising too. The additional business from cross sales and retention increases should make up for any lost commissions they might show on the books. And, let’s face it, Farmers isn’t going to open up the spreadsheets with a list of all the 21st clients so their agents can raid at will. So, these (rare) instances are going to be clients that are probably shopping (again), and have a strong likelihood of leaving anyway.
Of course there are the few dozen customers that the average agent might have lost from his Farmers agency that went to 21st, as you point out. But, look at FGI’s response. Hmmm …they acted like they hadn’t thought of that one until OTHERS had brought it up too (uh …yeah right, since this was just announced less than 48 hours prior to your meeting – so, I don’t think that meeting was the 3rd or 4th one of the day …do I really need to point that out. That’s a pre-planned talking point in case I do).
So, they will work on the particulars, they say. Let me look into my crystal ball …oh, I see them saying that the instances should be very rare and it’s too complicated to program their computers differently. Besides that, if you continue to press the issue, they will tell you to just be happy that you have been given a second chance to re-earn that business and …think of the cross sale opportunities you now have.
Forget that you probably tried to cross sell before they left you the first time, and when they saw the price Farmers wanted for that other policy, that’s probably what caused them to check your auto rates and go to 21st in the first place. Another vicious circle brought to you by the management company.
Bottom line – you just need to go along, to get along, and be a team playa!
Ha.
The story never changes, does it.
The things you have to ignore (or be truly oblivious) in order to be a happy Farmers agent are countless. This is just pure hilarity.
The bottom line whether you want to admit it or not, the sole purpose of the FIG managment company is to pay Zurich their +18%. Fig’s answer get it from you the agent. The math is quite simple, the average houshold pay about $3,000 for home. auto and umbrella, if you cross sell to get the umbrella and home you will get paid $100 (10% of $1,000). The agents need to refuse to cross sell, it will put you out of business.
If you are sticking around waiting for policies from those agents who left the GodFarmer, all you will get is the home, and umbrella @50%. They are going to offer the lower 21st Century auto policy to compete with the agent who left. One more thing ask DM what is an “exclusive” agent you are merely captive.
Thanks Sales! Have worked for FNWL for 20+ years. We have a lot of hard working, knowledgeable people who put the agent first. I don’t know if you sell life, but we’re here for you!
Well, looks like we have two groups represented here, the Gung Ho and the Naysayers.
Get a GRip, the company will hold out the carrots for the Gung Ho agents to grab and grab they will to offset years of policy losses.
The carrots will rot in the bin with the numerous future field bulletins that will change the announced to the obvious. The agents will lose in the long run as we have since the inception of state offices.
Any FIG agent in business more than 6 hours knows no risk goes uninspected. So, order your large office banners now and beat the rush.
21st CENTURY – OFFICIAL INSPECTION STATION
You will get 2% to inspect the intenet bound coverage and .5% renewals, if it stays on the books. Why do you think they have just finished 2 large construction of buildings in Olathe Kans and just announced an $84 million expansion in Caldonia, MI, home of Foremost? Do you think this is based on millions of PIF lost over the last decade?
Open your eyes, they are going direct internet sales in a big way and remaining employee agents will be inspecting the risk for the price of cafe dumpster food. Enjoy, Gung Hoers and sign that new employment contract, then, buy go that new home and lease two of top of the line Lexus’ based on your strength of belief.
The rest of us will bail you out, later as we bailed out Farmers earlier to IA status and now make real money in a real independent atmosphere. Half eaten, fly-infested steak coverd with coffee grounds, anyone?
It did not take long for it to happen. As an agent, I commented on the fact that this aquisition was great for FIG, and garbage for the agency force.
I actually got a call from one of those 21st Century, (oops, I mean a Farmers family member now), who went online to get a quote for his homeowners insurance.
He could only go so far online till the prompt said to call a local agent…me!
I said at the outset of this fiasco that this whole “opportunity” thing that Mother Farmers tried to push on the agents, was a farce because their rates on homeowners are sooo out of the box. IF an agent gets a call, chances are very good that we will not be able to sell the policy.
Guess what? I hate when I am right. We were only 2 1/2 times higher than what he currently had, with LESS coverage.
Keep drinking the Kool-aid all you gung hoers! P.S. I placed him with another carrier. Did his home AND re-wrote the 21st Century policy as well.
We got nipped on this one. Almost had it in the bag, but Zurich wanted it more. QBE will buy the next one. more to come.
Allstate should have bought them to compete in many markets they do not have.
Once again late to the game as usual.
I have heard talks about the new agents contract, I personally think you should allow agents to become independant, you have been slowly putting agents out of bussiness through your (so called) rate adjustments. we have continued to loose our preferred clients; pretty soon you will be complaining about underwriting losses due to putting us in an adverse selection basis. why doesn’t FIG tell their agents what the big picture is; most would be willing to bail while they have something left; or maybe that’s what you are trying to prevent.
Farmers Insurance has the greatest management team in business today.
Full speed ahead.
Good move.
I can’t agree with you more Jim and Jude.
Our agency is strapped in and not looking back!
Bobby Uppal
-www.uppal-insurance.com
well, w/the this aquistiion, and the other products being sold, will it be enough to pay the taxpayers back the $180 billion? it does not look like it is. how long will it take for AIG to give us back our taxpayers? i hope that farmers w/the $100 million of debt, it can make it back. let’s hope that the debt does not weigh itself down.
hehehehehehehehehhehehehehehehehe. That is the funniest thing I’ve heard in two days. This is the Company that Farmers DM’s have made fun of since the bailout.
Will be interesting to see what they find when they start turning over the rocks.
Well… excellent, we “loaned” them $170 Billion, they sell off 21st Century for 1.9 Billion… now if they can just find someone willing to pay $168 Billion for the coffee machine in the breakroom we’re all squared away.
is that like the military that buys the toilet seat for $300? um…um… but remember, this was not the part that was in a deficit…. but if you look, many parts of AIG is being sold, question – will there be enough money to payback the complete LOAN!
p.s. did the chair cost $5?
GMAC Insurance is next…
What are the Farmers agents going to cross sell? One fact still remains, Farmers has the highest price and if the customer is with 21st Century they are price shopper’s. I’m glad I went IA.
“exclusive” can refer to products that are only available from select distributors or retailers, and have never been released before, or only at a particular event. Current FIG agent’s unless you sign the new contract you will now be in competition with the agents that signed your NEW AAA. I hope you understand this was a great calculated move for Zurich, not the agents, this might be your last chance to get out or sign the new AAA. Wake up, FIG has no intention of allowing it’s agency force to stay independent, you will be exclusive or they will force you out….
Hey Jude – I truly appreciate your positive attitude, but believe me your company just shot you in the back for the money. This product AIG will only be given to “exclusive agents” so unless you paln on signing the new AAA, the exclusive agents for FIG will now be your competion. Jude I am truly sorry (very successful IA ex FIG agent) but this can not be anything but a sad song……..
If I may add my 2 cents, I believe Zurich/ Farmers is acquiring the solvent subsidiary of AIG (Personal Lines Division). These components have never stopped making money. You confuse them with the guys in London….
the auto club group just bought MEEMIC which was part of GMAC, right?
I heard that the book that FIG got for $1.9B is actually worth about $4B total. I have been hearing whispers about this for about a month now but last I heard the Fed’s blocked the sale becuase FIG wanted to get it for $2B and the Fed wanted more for it. Sorry Washington boys, when you need money, your stuff is not going to sell for what you think it should. Be happy that someone wanted it!
Anon, it is a line of credit….they have tapped 80B….get a clue…do you ever read anything outside std media bull
Another company is too big to fail being allowed to buy another that was too big to fail – I don’t get it. Soon there will be only one company to buy insurance from, one grocery chain to buy groceries from etc. and they’ll all be known as U.S. Farmers, U.S. Walmart, U.S. Exxon etc.. Break it up! No consolidation of large companies, allow natural selection to work!
One poorly managed company being purchased by another poorley managed company.
How much more is the tax payor going to have to pony up again?
So…Farmers agents are excited that their company has purchased a direct marketing unit designed to take them out of the sales process….now we know why this industry has problems.
No one said the agents are happy. Other then the company
LMAO
I’m a Farmers agent & I’m happy….the more I can sell the better.
Farmers is also taking over 21st’s $100,000 million in debt
Must not be too poorly managed to have $1.5 billion cash sitting around for purchase
As an agent with Farmers for 17+ years, have seen good and bad. This can only be a good thing, from everything I’ve read…for agents, we get some revenue from online sales, and opportunities to cross sell…for the company, we get instant access to direct markets, new markets (east coast) on an already successful platform (anyone who works on dashboard KNOWS that a successful internet platform is worth the 1.9billion alone!)
Great Job, Zurich/Farmers
KOOLAID, Get your KOOLAID!
Haahaaahahaahahaaa!
This is gonna get even better in about a year. Have fun, figsters. If you’re an agent, this is nothing but bad news for you. Especially, if you are one of those Indy AIG agents that’s having YOUR book rolled over. What’s going to happen with those policies and policy holders?
FIG is doing a great job convincing agents that 21st Century will good for them; look at all the happy agents.
I just say – shame on you all of you who are Farmers agents and are dissing this acquisition! What have you done to grow your businesses in the past 10 years? I’ve been in this industry for over 30 years and have seen many many changes. Have you been out pounding the pavement? Or…are you just waiting for your phone to ring off the hook from referrals? (which is NOT going to happen in this market). If Farmers has 1.9 billion to acquire a company that has a client base that could be good for your business, do you think that we are going away any time soon? I think not. People can say what they want – and many people have had bad experiences with an insurance company, mainly due to not understanding what insurance is or what they agree to in a contract. But I believe that Farmers has been responsive in extreme disasters and will continue to be strong in the future. So before dissing this – think about it. What kind of changes have we gone through in the past – and what kind of positive things/changes do we want to see in the future?
All you Farmers agent should be very excited about your current auto clients having access to 21st Century’s 35% lower auto rates !! When you re-write them to 21st C and get 1%-2% commission, your clients will “Love their Agent” finally.
I’ve checked my rates with 21st & they were more than I pay now with FIG.
Oh… I’m sorry… I stand corrected, I guess I just don’t have a great deal of knowledge about how things work when the Feds start throwing around hundreds of billions of dollars to private companies.
Okay… I guess it’s not so bad then… so let me make sure I understand correctly: my tax dollars extended a $170 Billion “line of credit” to AIG of which they’ve availed themselves of the paltry sum of $80 Billion (of which $37.5 Billion was sent to foriegn banks with another $28.7 Billion to domestic financial companies*).
Wow… I’m glad I’ve been set straight… look guys… that coffee pot is on sale now… with the 21st Century sale they only have to find a buyer willing to pay $78 Billion for that – hell, if they toss in the microwave from that breakroom I might see if Congress can extend me a “Line of Credit” too.
*http://www.nytimes.com/2009/03/16/business/16rescue.html
Gee whiz…now I know why Farmers has been taking such huge and constant rate increases. Silly me, I have always been told that it was due to not being profitable.
Wow, and now we can offer the people (who left Farmers to go with AIG), additional products which are priced higher than the rest of the competion.
I have been an agent for 19yrs. with many ups and downs. All you negative agents just quit while you still have some contract value. Your sour attitude is poisioniong your own well and killing your possible growth either pif or gwp. If you think the company is so bad quit and give the positive agents your book.
I have been an agent for 19yrs. with many ups and downs. All you negative agents just quit while you still have some contract value. Your sour attitude is poisioniong your own well and killing your possible growth either pif or gwp. If you think the company is so bad quit and give the positive agents your book.
http://www.chicagotribune.com/business/chi-fri-aig-zurich-apr17,0,6556066.story
-Bobby Uppal
http://www.uppal-insurance.com
A tie? Reeeeaally??
Since the tie quote comes from the Farmers CEO, I think that really will add up to still being #5, although much closer. No such thing as a tie, rambo.
As someone has previously mentioned, another round of koolaid’s on Mr. Woudstra.
Enjoy.
I know it’s hard to believe, but here’s another example of a supposedly successful FIG agent that’s got nothing better to do than to whine about the whiners. What’s it to him?
Well…
Just for the record, Jake-Leg-Larry, not everybody is stuck with no other options, like you. Thank goodness I wasn’t. After 22 years of experiencing their ups and downs (as you call it …more downs that ups, I can assure you), I finally had my fill and set up for departure several years ago.
Best decision I ever made. But, having said that, it was not an easy feat to walk away from a large book of business with only the one option that was contractually given to me at the time of signing my up for my chance at Owning My Own Business (as they say) with so little vision of reality back then.
What was that one option? Take contract value and do not compete – or else! Well, had I really owned my own business, I would have gladly shot them the finger, left my CV on the table and competed for my clientele. But at the happy moment of signing, that was simply envisioned as a contractual retirement option – oh yeah.
Such is life – live and learn.
For those of you that are still stuck, you are turning more vulture-like every single day. And with good reason. This guy is a perfect example. I would say that at least 85% of the FIG agents that are pointed to as being successful are continually receiving those books of business from the sweat of other good agent’s backs. Otherwise, they would fail just as miserably. How do they get to be the chosen ones? Generally, by wiping their DM’s hind side? Or, informing on fellow agents. Or, selling lots of life insurance (the term lots is certainly relative, because even the best Farmers Life agents could not hold a candle to a real Life agent).
So, keep popping off, Mr. Big-Shot. One day, there won’t be any more bodies left to feed off, and you will find yourself in the same bone yard.
What comes around, goes around …and, it will.
Farmers just purchased the worst claims dept. that ever existed. I hope Farmers takes over the claims handling, otherwise they married their worst nightmare – spouse who is a constant cheater.
When you see FIG home insurance rates increase to a point that you can’t sell them; watch for “cheap-home-insurance.com”.
Dear Texican; Your comment for all of us to wait until our homeowners rates increase to where we can’t sell them… You must not get out of Texas too often.
The only states where Farmers rates are competative now are California, Arizona, Texas, maybe Nevada. The rest of the states, are competative in about 2-3% of the customers. We ARE already there with the rates.
Enjoy your success in Texas cause all of the rest of us have been losing loyal friends and clients 100 to 200 policies per year for the last 5 yrs plus due to the rates.
Oh, and an addidtional note to Mr Larry Mc…I also am a 30 yr agent and I am not a whiner. Ask my wife if I have been sitting on my behind waiting for the phone to ring since she hardly sees me after working 12-14 hour days, 6 days a week constantly.
This is about opening your eyes to realities for business planning and not just going along and drinking FIG’s Kool-Aid.
Many of us out there have poured our heart and souls into this business. We have grown and prospered due to our hard work only to have FIG change their philosophy due to Zurich.
Now our books of business are leaving in droves due to Zurich only looking at bringing in more dollars for their bottom line at an unacceptable cost to the agents and most importantly to the customer.
Time to go truly IA. You can have my policies if there are any left.
I for one think this may prove to have some validity. Cake’s just barely in the oven, let’s wait and give it a chance. My major concern is they appear to be going to let AIG remain in the book to ‘service’ the claims. With that bunch of crooks at AIG, I would have escorted them to the door under guard. I suppose Mr Woodstra has complete faith that they won’t raid 21’s books to refer to their remaining personal lines as leads?
Carolyn – you are absolutely right. This is not the division of AIG that was in trouble.
Well if all of you who are so “sure” that Farmers is going to get rid of all of their agents and do all their business online and direct – then hurry (!) and go independent so that the ones who are willing to stick it out can have your business!
Texican-I am glad that you cleared this up-Farmers is in business to keep you happy. Jeez what a whiner.
Farmers is growing and making money so what is your beef? Its easy to sell with the lowest prices on the street, but then carriers who do that usually end up broke. Be glad you are representing a financaly healthy company that can afford to pay for a Hurricane Ike and not do the el foldo-or was that not in your neck of the woods there Texican.
Sell what you have to sell or go down the street-I am happy to be working for a company that is profitable, making money, can pay big claims-and oh by the way, have enough $$$$ to make a major aquisition.
I would also say that whether or not Farmers goes diect will have no bearing on your success. If you demonstrate value other than to point out a cheaper price then you’ll do pretty well. If you can’t do that, then you’ll surely struggle.
Here is the common sense of this, many agents will leave and go IA (that’s already happening)but now instead of paying 50% to service these clients FIG will offer them direct at 40% less. Why on earth would they not convert something they own, this will make it harder to rewrite for the old agent. The agents hanging around will now get the homes at 50% and will service the autos for 0%. gooooooooooooooood luck……..
To Carolyn, It’s refreshing to read someone who knows the difference between AIG financial and its’ insurance co 21st Century. Totally separate entities. Don’t you just love the way the media lumps them together?
From what I understand, 21stC will keep its’ auto biz and the FIE agents (only, not the IAs) will get to cross sell.
I read somewhere that AIG bought 21st Century back in 2007. Didn’t Mercury Ins own them before? I sort of remember that in CA. I could be mistaken.
this acquisition is simply a way for the Farmers Insuance Group to position themselves to be able to shift thier business model from agency driven to direct writers if they choose. Once complete, it will be as simple as adding another tab on the 21st century webpage for homeowners, life and small business products. And in the process, squeeze out all of the agency force that remains.
Years ago “they” said 1-800 & the internet would put us agents out of business. It hasn’t happened & it won’t happen. Consumers either already know or find out the hard way, that insurance is a strange product & without a professionals help the consumer ends up with lots of problems. As long as you’re providing value to your customers you will stay in business.
Not Worried – you got that right. I have had many clients come back after doing the “online” gig and say they will never NOT have an agent again. People are finding out that premium is not the bottomline all the time.
I attended a FIG meeting yesterday. A VP from home office and the north Texas Regional Manager gave premininarly facts. They acknowledged that internet shopping is simply a reality and we are fortunate to be able to acquire an established carrier rather than developing one. However, they said the retention rate for internet sold insurance policies is low compared to agent sold policies. FIG will allow agents to cross sell 21st Cent customers for other lines. They will then become our customers and we’ll receive a service commission. If we rewrite them to a FIG auto policy we receive 50% of normal commissions.
During the Q&A session I told the FIG representatives that I expect to receive full commissions if I rewrite a 21st Cen policy to FIG if I can show that I was simply recovering a former customer and that I still have other FIG policies with them. They said I was not the only agent to comment about this and that particulars will be worked out later. This should not be a problem in that my staff will be reinstating their old policies – not starting new ones.
This acquistion has months of red tape to go through.
Kent,
I love the way Farmers agents often gloss over so many things. Not sure if that was your intention, or not. So, I’m not trying to pick on you in particular.
For Farmers Insurance to tell their agents, who they continually claim utmost commitment towards, that if they manage to show these 21st Century clients that there is actual value to having a Farmers policy (which comes with a Farmers agents as a bonus, remember), that would be an outstanding accomplishment that should be noticed and rewarded …even if your pricing was somewhat close. In actuality, the price difference in most areas of the country will be tremendous, thus making that theoretical accomplishment even more remarkable and worthy of reward from your company.
You should get another plaque …really.
Instead, Farmers wants to penalize you for raiding THEIR business. They don’t care about YOU in the slightest. They would rather penalize you for showing that value and building the Farmers brand.
Why?
Yes, I know they just plopped down a BILLION+ dollars. But, they spend a lot on advertising too. The additional business from cross sales and retention increases should make up for any lost commissions they might show on the books. And, let’s face it, Farmers isn’t going to open up the spreadsheets with a list of all the 21st clients so their agents can raid at will. So, these (rare) instances are going to be clients that are probably shopping (again), and have a strong likelihood of leaving anyway.
Of course there are the few dozen customers that the average agent might have lost from his Farmers agency that went to 21st, as you point out. But, look at FGI’s response. Hmmm …they acted like they hadn’t thought of that one until OTHERS had brought it up too (uh …yeah right, since this was just announced less than 48 hours prior to your meeting – so, I don’t think that meeting was the 3rd or 4th one of the day …do I really need to point that out. That’s a pre-planned talking point in case I do).
So, they will work on the particulars, they say. Let me look into my crystal ball …oh, I see them saying that the instances should be very rare and it’s too complicated to program their computers differently. Besides that, if you continue to press the issue, they will tell you to just be happy that you have been given a second chance to re-earn that business and …think of the cross sale opportunities you now have.
Forget that you probably tried to cross sell before they left you the first time, and when they saw the price Farmers wanted for that other policy, that’s probably what caused them to check your auto rates and go to 21st in the first place. Another vicious circle brought to you by the management company.
Bottom line – you just need to go along, to get along, and be a team playa!
Ha.
The story never changes, does it.
The things you have to ignore (or be truly oblivious) in order to be a happy Farmers agent are countless. This is just pure hilarity.
The bottom line whether you want to admit it or not, the sole purpose of the FIG managment company is to pay Zurich their +18%. Fig’s answer get it from you the agent. The math is quite simple, the average houshold pay about $3,000 for home. auto and umbrella, if you cross sell to get the umbrella and home you will get paid $100 (10% of $1,000). The agents need to refuse to cross sell, it will put you out of business.
If you are sticking around waiting for policies from those agents who left the GodFarmer, all you will get is the home, and umbrella @50%. They are going to offer the lower 21st Century auto policy to compete with the agent who left. One more thing ask DM what is an “exclusive” agent you are merely captive.
Thanks Sales! Have worked for FNWL for 20+ years. We have a lot of hard working, knowledgeable people who put the agent first. I don’t know if you sell life, but we’re here for you!
Well, looks like we have two groups represented here, the Gung Ho and the Naysayers.
Get a GRip, the company will hold out the carrots for the Gung Ho agents to grab and grab they will to offset years of policy losses.
The carrots will rot in the bin with the numerous future field bulletins that will change the announced to the obvious. The agents will lose in the long run as we have since the inception of state offices.
Any FIG agent in business more than 6 hours knows no risk goes uninspected. So, order your large office banners now and beat the rush.
21st CENTURY – OFFICIAL INSPECTION STATION
You will get 2% to inspect the intenet bound coverage and .5% renewals, if it stays on the books. Why do you think they have just finished 2 large construction of buildings in Olathe Kans and just announced an $84 million expansion in Caldonia, MI, home of Foremost? Do you think this is based on millions of PIF lost over the last decade?
Open your eyes, they are going direct internet sales in a big way and remaining employee agents will be inspecting the risk for the price of cafe dumpster food. Enjoy, Gung Hoers and sign that new employment contract, then, buy go that new home and lease two of top of the line Lexus’ based on your strength of belief.
The rest of us will bail you out, later as we bailed out Farmers earlier to IA status and now make real money in a real independent atmosphere. Half eaten, fly-infested steak coverd with coffee grounds, anyone?
It did not take long for it to happen. As an agent, I commented on the fact that this aquisition was great for FIG, and garbage for the agency force.
I actually got a call from one of those 21st Century, (oops, I mean a Farmers family member now), who went online to get a quote for his homeowners insurance.
He could only go so far online till the prompt said to call a local agent…me!
I said at the outset of this fiasco that this whole “opportunity” thing that Mother Farmers tried to push on the agents, was a farce because their rates on homeowners are sooo out of the box. IF an agent gets a call, chances are very good that we will not be able to sell the policy.
Guess what? I hate when I am right. We were only 2 1/2 times higher than what he currently had, with LESS coverage.
Keep drinking the Kool-aid all you gung hoers! P.S. I placed him with another carrier. Did his home AND re-wrote the 21st Century policy as well.