i’ve talked to one body shop owner and two 21st century agents, and the verdict is farmers made a bad investment.Fig has agents and clients that needed a rate reduction not a company bragging about how big they are.
I can already see the writing on the wall. The computer has been programmed so that you have to call Service Point to process the simplest transactions. And, almost nothing can be done if it’s past three days. Farmers buying 21st Century is the test to see if agents are even needed.
MI, I agree with you about the Foremost site. Again, you have to call them to process the simplest transactions. Don’t get me started about the Bristol West site. Horrible.
farmers is coming for you state farm. You are next on the list. I hope all you agents who have been getting fat all these years are ready for some drastic changes
SWFL, I think your off base on this one. Farmers is looking for multiple distribution channels and they have it with this purchase. Captives (for how long who knows), Bristol West, Aig (Direct and Independants)and Foremost Distinct Choice (For independants) The price for 21st Century supposedly started at 5 Billion and they got it for 1.9.
I think you’re wrong. 21st Century is a direct writer and has a good web-based system. Personal auto is purchased more and more often on line every day. Farmers’ foresight is that in 10-15 years, they would otherwise be out of the personal auto business.
Don’t dance on State Farms grave just yet. I have the above mentioned companies and I’m not exactly setting sales records with their overpriced products. Foremost agent web site is somthing out of the 80’s.
Farmers has been running of their preferred auto business for the past 2 years through continued rate increases. You FIG agent be sure to include your customer email addresses on the dashboard, so they can compile a marking list for 21st Century. I’m glad that I’m an old agent about ready to retire, otherwise I would go independent.
You hit the nail on the head, we are losing PIF faster that we can write new, we are grosly uncompetitive, and have a new auto platform that is so easy to use that it could be online!!!!!!!!!
no kidding… what do those dm’s do except brag about how much they make and kiss *** to the state exec. they know vip is a joke but stil push it… no backbone i say.
They paid too much and 21st Century will prove to be unprofitable. Farmers will learn that it is not the agents commissions causing a strain on profits, but administrative cost (i.e. employee posistions, marketing campaigns that don’t prove profitable) and unfair competition in the P & C market. They will have to model Progressive and allow the consumer to choose from having an agent or not.
I think they were simply trying to help AIG, or they were duped by them. I’m not sure which.
When consumers are purchasing on line auto they aren’t choosing to not have an agent (who is simply a knowledgable Personal Relations Rep. or CSR)they are simply shoping rate and convenience of doing the application process at home (they don’t want to get dressed). The consumer still expects and prefers to have that person to talk to and they still prefer to have someone local, so that they know they can see face to face, talk to the same person, know them personally (someone in the community)a store to go to or drive by. Even if they never do, they just want the peace of mind that they are close by and convenient if they have a problem. Someone to hold accountable. Not someone 1000 miles or more away. What if they get mad? WHO IS MORE LIKELY TO RESPOND? THE local AGENT OR THE COMPUTER OR CSR IN TEN BUCK TWO?
IT IS NOT THE DISTRICT MANAGERS THAT WILL GO. They WILL BE COME AGENCY MANAGERS, most of them are better salesmen then the agents. It will be the Division Managers, a hand full of marketing posistions that prove to be unprofitable (VIP SPECIALIST).
There are a lot more snakes on this plane than any of us can see before it will be too late. Farmers Group already released all of their “proprietary” client info to Century 21 and they are marketing against farmers agents with inside info for 2 months now. How will that affect the contract value for those farmers agents still left? Take your CV now and run, this planes gonna crash with the help of Hopkins/woodstra/et al.
I’M NOT SURE FARMERS COULD AFFORD A MASS CV PAYOUT… WOULDN’T THAT REQUIRE THEM TO “EASE” INTO A CONVERSION THUS NOT SPOOK SO MANY AGENTS? THE NEW CONTRACTS FOR AGENTS ARE MORE DESIGNED TO MAKE THEM EMPLOYEES. IT SEEMS MORE LIKELY THEY STILL WANT AN AGENCY FORCE AND THE HIGHER PREMIUMS AGENTS CAN USUALLY GET. ANYONE THINK THAT’S TRUE?
Again Farmers is going to find out that people over all prefer a local office that just so happens to be the responsibility of the agent to finance. Either they will invest in paying all the expense to open local offices in every town and higher licensed employees or they might find it cheaper to pay the commissions and let the agents finance it. Not to mention the agents pay for nearly all of the local advertising and community involvement.
Now how are they going to do this for less then what the already pay their agents?
What should happen is that Farmers will get more efficient and will be required to lower the number of internal administrative posistions. I believe that Farmers has created too many posistions that don’t amount to anything more then just a stepping stone for folks, while they are working on an MBA or not much of anything that really has any effect on productivity or profitability. They could save millions of dollars on paper waste alone.
What will happen in the insurance industry, as far as regulation goes, is that a company will have to be more efficient, very large ($2 billion and greater), with stable or better financial forecast, with Fed supervision on investment practices using insurance premiums. In other words, the insurance companies won’t have free reign in what they choose to invest in and with what. The feds will set the investment model. NO MORE MA & PA MUTUAL COMPANIES. NO MORE NON-ADMITTED CARRIERS.
BOTTOM LINE. Farmers could get rid of all of their agents but they would still be unprofitable for the simple fact that this ain’t the problem.
I only take exception with one comment you made. Most district managers ARE NOT better sales people than the agents. Most are no recruiting managers and have never sold a policy in their life.
This just means the same ole same ole. Brokers sell the lowest rate and will place business with 21st century if it is cheaper. Nothing has changed. Except that the independents can now cross sell discounts if they have the home through the FACT program.
The insurance industry is headed for some big changes and I am thinking that Brokers will have to make a choice in becoming captive with one company for each line they offer.
The number of insurance companies are going to have to reduce significantly and rates will become more controlled and equal in cost. The captive agent will not be driven by sales but by service to the clients. Companies will either pay commissions or find it less expensive to invest in office space, staffed with licensed representatives/agents.
CRAZY? It’s going to happen.
Farmers doesn’t dislike all of their agents. And they don’t do too much about the ones they don’t like.
The Farmers of old was more of a real family,fun to represent and we made decent money helping families and business owners protect their assets. Now Zurich has turned a once tiffany American company into a future “headset” insurance company! I am glad I have transitioned my agency to Finacial Services, as most insurance will be bought online in the next few years. It is sad. The State Office and DM’s will be next to go as they are a huge liablity to Zurich’s pockets. When we sell other compaines Long Term Care, we do not need a State Office or Local DM, we just talk directly to the Home Office underwriter *(not a phone tree that gives you a different answer every time you call). At one time, Farmers was a great company to be an agent with, but now, they treat you like an employee instead of a business partner. The rates in our market are so high, the phone never rings, and when we get a referral, we can’t close it as the rates are so bloody high! Sad indeed. **(and don’t even get me started on Commercial rates and computer program!)
I WORKED FOR RADIO SHACK FOR SEVERAL YEARS BEFORE COMING TO FARMERS. WHAT THAT COMPANY DID TO IT’S EMPLOYEES MAKES FARMERS SEEM LIKE CHILDS PLAY.
IT’S JUST THE WAY IT IS GUYS AND GALS. COMPANY’S SAY THE RIGHT THINGS THEN DO EXACTLY WHAT THEY WANT WHILE LYING THE WHOLE TIME. UPPER MANAGEMENT IS SIMPLY A MOUTH PIECE. NO SOUR GRAPES JUST FACT.
TAKE WHAT YOU CAN FROM A COMPANY… WHEN YOU CAN’T STAND IT ANY LONGER, MOVE ON. NOT MANY OF US WILL “RETIRE” FROM FARMERS OR ANY OTHER COMPANY FOR REAL. WE’LL ALL END UP JUMPING SHIP OR CASHING IN AT SOME POINT… NO GOLD WATCH.
I’LL SAY IT AGAIN RADIO SHACK MADE ABSOLUTE SLAVES OUT OF ITS PEOPLE THEN FIRED THEM TO AVOID PAYING PRODUCTION BONUSES OR TENURE PAY. I BELIEVE IT’S SAFE TO SAY ALL THE “MAYBERRY” OR “HAPPY DAYS” ARE LONG LONG GONE.. IF IT EVER REALLY WAS.
WE’RE NUMBERS BOYS AND GIRLS. NOTHING PERSONAL. NO LOVE.
It’s the industry that’s changing. Don’t you see? There are too many agents and too many insurance companies.
The Cat events were the catylist for the undfolding events that have occured and what will occur.
By the way, getting insurance on line isn’t as quik and easy as one would think (telephone is quicker). And with the economy so bad, more and more people will be giving up their internet.
The insurance industry will collapse if our Fed. Gov’t doesn’t expand the FEMA FLOOD to include, huricane, earthquake, Volcanic eruption and War.
Our gov’t could mandate that every homeowner purchase this coverage for $20 per month to covere each home up to $250,000. Let insurance companies sell excess coverage if they want. Take these risk from the insurers (who don’t want to sell it any way)and the cost of insurance for the HO 3 should drop by atleast 50%. Not only if people start paying now there would be enough money in the fund to meet expectations of the fund in less than 1 year.
It is Farmers that changed due to Zurich! According to the Insurance Journal, Zurich/Farmers Management Service’s fees and other related revenues were up 6 percent to $2.3 Billion. This means Zurich is getting $7,123,287.67 per day from the Exchange! Farmers is nothing but an American cash cow for Zurich. Mutual compnaies and Stock compaies do not have the same massive expenses Farmers has as an Insurance Reciprocal.
They’re coming for you State Farm!
i’ve talked to one body shop owner and two 21st century agents, and the verdict is farmers made a bad investment.Fig has agents and clients that needed a rate reduction not a company bragging about how big they are.
I can already see the writing on the wall. The computer has been programmed so that you have to call Service Point to process the simplest transactions. And, almost nothing can be done if it’s past three days. Farmers buying 21st Century is the test to see if agents are even needed.
MI, I agree with you about the Foremost site. Again, you have to call them to process the simplest transactions. Don’t get me started about the Bristol West site. Horrible.
dont you mean lookout farmers captive agents. it’s time for you to go.
farmers is coming for you state farm. You are next on the list. I hope all you agents who have been getting fat all these years are ready for some drastic changes
I don’t think 21st Century is really that big of a prize for Farmers. Farmer’s has wasted their money.
SWFL, I think your off base on this one. Farmers is looking for multiple distribution channels and they have it with this purchase. Captives (for how long who knows), Bristol West, Aig (Direct and Independants)and Foremost Distinct Choice (For independants) The price for 21st Century supposedly started at 5 Billion and they got it for 1.9.
I think you’re wrong. 21st Century is a direct writer and has a good web-based system. Personal auto is purchased more and more often on line every day. Farmers’ foresight is that in 10-15 years, they would otherwise be out of the personal auto business.
Don’t dance on State Farms grave just yet. I have the above mentioned companies and I’m not exactly setting sales records with their overpriced products. Foremost agent web site is somthing out of the 80’s.
Farmers has been running of their preferred auto business for the past 2 years through continued rate increases. You FIG agent be sure to include your customer email addresses on the dashboard, so they can compile a marking list for 21st Century. I’m glad that I’m an old agent about ready to retire, otherwise I would go independent.
You hit the nail on the head, we are losing PIF faster that we can write new, we are grosly uncompetitive, and have a new auto platform that is so easy to use that it could be online!!!!!!!!!
The District Manager concept was great in 1926, not so great now. Tick…tick…tick
We can only hope.
no kidding… what do those dm’s do except brag about how much they make and kiss *** to the state exec. they know vip is a joke but stil push it… no backbone i say.
They paid too much and 21st Century will prove to be unprofitable. Farmers will learn that it is not the agents commissions causing a strain on profits, but administrative cost (i.e. employee posistions, marketing campaigns that don’t prove profitable) and unfair competition in the P & C market. They will have to model Progressive and allow the consumer to choose from having an agent or not.
I think they were simply trying to help AIG, or they were duped by them. I’m not sure which.
When consumers are purchasing on line auto they aren’t choosing to not have an agent (who is simply a knowledgable Personal Relations Rep. or CSR)they are simply shoping rate and convenience of doing the application process at home (they don’t want to get dressed). The consumer still expects and prefers to have that person to talk to and they still prefer to have someone local, so that they know they can see face to face, talk to the same person, know them personally (someone in the community)a store to go to or drive by. Even if they never do, they just want the peace of mind that they are close by and convenient if they have a problem. Someone to hold accountable. Not someone 1000 miles or more away. What if they get mad? WHO IS MORE LIKELY TO RESPOND? THE local AGENT OR THE COMPUTER OR CSR IN TEN BUCK TWO?
IT IS NOT THE DISTRICT MANAGERS THAT WILL GO. They WILL BE COME AGENCY MANAGERS, most of them are better salesmen then the agents. It will be the Division Managers, a hand full of marketing posistions that prove to be unprofitable (VIP SPECIALIST).
There are a lot more snakes on this plane than any of us can see before it will be too late. Farmers Group already released all of their “proprietary” client info to Century 21 and they are marketing against farmers agents with inside info for 2 months now. How will that affect the contract value for those farmers agents still left? Take your CV now and run, this planes gonna crash with the help of Hopkins/woodstra/et al.
I’M NOT SURE FARMERS COULD AFFORD A MASS CV PAYOUT… WOULDN’T THAT REQUIRE THEM TO “EASE” INTO A CONVERSION THUS NOT SPOOK SO MANY AGENTS? THE NEW CONTRACTS FOR AGENTS ARE MORE DESIGNED TO MAKE THEM EMPLOYEES. IT SEEMS MORE LIKELY THEY STILL WANT AN AGENCY FORCE AND THE HIGHER PREMIUMS AGENTS CAN USUALLY GET. ANYONE THINK THAT’S TRUE?
Again Farmers is going to find out that people over all prefer a local office that just so happens to be the responsibility of the agent to finance. Either they will invest in paying all the expense to open local offices in every town and higher licensed employees or they might find it cheaper to pay the commissions and let the agents finance it. Not to mention the agents pay for nearly all of the local advertising and community involvement.
Now how are they going to do this for less then what the already pay their agents?
What should happen is that Farmers will get more efficient and will be required to lower the number of internal administrative posistions. I believe that Farmers has created too many posistions that don’t amount to anything more then just a stepping stone for folks, while they are working on an MBA or not much of anything that really has any effect on productivity or profitability. They could save millions of dollars on paper waste alone.
What will happen in the insurance industry, as far as regulation goes, is that a company will have to be more efficient, very large ($2 billion and greater), with stable or better financial forecast, with Fed supervision on investment practices using insurance premiums. In other words, the insurance companies won’t have free reign in what they choose to invest in and with what. The feds will set the investment model. NO MORE MA & PA MUTUAL COMPANIES. NO MORE NON-ADMITTED CARRIERS.
BOTTOM LINE. Farmers could get rid of all of their agents but they would still be unprofitable for the simple fact that this ain’t the problem.
Farmers just dont like their agents. Farmers is appointing hundreds of 21st century. go to 21stagent.com and and get an appointment today.
Sheltowee — perhaps you mean Timbuktu…?
Glad you noticed.
Sheltowee,
I only take exception with one comment you made. Most district managers ARE NOT better sales people than the agents. Most are no recruiting managers and have never sold a policy in their life.
Sorry Sheltowee, I meant to say “no more than recruiting mansgers”
This just means the same ole same ole. Brokers sell the lowest rate and will place business with 21st century if it is cheaper. Nothing has changed. Except that the independents can now cross sell discounts if they have the home through the FACT program.
The insurance industry is headed for some big changes and I am thinking that Brokers will have to make a choice in becoming captive with one company for each line they offer.
The number of insurance companies are going to have to reduce significantly and rates will become more controlled and equal in cost. The captive agent will not be driven by sales but by service to the clients. Companies will either pay commissions or find it less expensive to invest in office space, staffed with licensed representatives/agents.
CRAZY? It’s going to happen.
Farmers doesn’t dislike all of their agents. And they don’t do too much about the ones they don’t like.
The Farmers of old was more of a real family,fun to represent and we made decent money helping families and business owners protect their assets. Now Zurich has turned a once tiffany American company into a future “headset” insurance company! I am glad I have transitioned my agency to Finacial Services, as most insurance will be bought online in the next few years. It is sad. The State Office and DM’s will be next to go as they are a huge liablity to Zurich’s pockets. When we sell other compaines Long Term Care, we do not need a State Office or Local DM, we just talk directly to the Home Office underwriter *(not a phone tree that gives you a different answer every time you call). At one time, Farmers was a great company to be an agent with, but now, they treat you like an employee instead of a business partner. The rates in our market are so high, the phone never rings, and when we get a referral, we can’t close it as the rates are so bloody high! Sad indeed. **(and don’t even get me started on Commercial rates and computer program!)
I WORKED FOR RADIO SHACK FOR SEVERAL YEARS BEFORE COMING TO FARMERS. WHAT THAT COMPANY DID TO IT’S EMPLOYEES MAKES FARMERS SEEM LIKE CHILDS PLAY.
IT’S JUST THE WAY IT IS GUYS AND GALS. COMPANY’S SAY THE RIGHT THINGS THEN DO EXACTLY WHAT THEY WANT WHILE LYING THE WHOLE TIME. UPPER MANAGEMENT IS SIMPLY A MOUTH PIECE. NO SOUR GRAPES JUST FACT.
TAKE WHAT YOU CAN FROM A COMPANY… WHEN YOU CAN’T STAND IT ANY LONGER, MOVE ON. NOT MANY OF US WILL “RETIRE” FROM FARMERS OR ANY OTHER COMPANY FOR REAL. WE’LL ALL END UP JUMPING SHIP OR CASHING IN AT SOME POINT… NO GOLD WATCH.
I’LL SAY IT AGAIN RADIO SHACK MADE ABSOLUTE SLAVES OUT OF ITS PEOPLE THEN FIRED THEM TO AVOID PAYING PRODUCTION BONUSES OR TENURE PAY. I BELIEVE IT’S SAFE TO SAY ALL THE “MAYBERRY” OR “HAPPY DAYS” ARE LONG LONG GONE.. IF IT EVER REALLY WAS.
WE’RE NUMBERS BOYS AND GIRLS. NOTHING PERSONAL. NO LOVE.
We may be just numbers now, but there was a time when Farmers was a great company to represent!
It’s the industry that’s changing. Don’t you see? There are too many agents and too many insurance companies.
The Cat events were the catylist for the undfolding events that have occured and what will occur.
By the way, getting insurance on line isn’t as quik and easy as one would think (telephone is quicker). And with the economy so bad, more and more people will be giving up their internet.
The insurance industry will collapse if our Fed. Gov’t doesn’t expand the FEMA FLOOD to include, huricane, earthquake, Volcanic eruption and War.
Our gov’t could mandate that every homeowner purchase this coverage for $20 per month to covere each home up to $250,000. Let insurance companies sell excess coverage if they want. Take these risk from the insurers (who don’t want to sell it any way)and the cost of insurance for the HO 3 should drop by atleast 50%. Not only if people start paying now there would be enough money in the fund to meet expectations of the fund in less than 1 year.
It is Farmers that changed due to Zurich! According to the Insurance Journal, Zurich/Farmers Management Service’s fees and other related revenues were up 6 percent to $2.3 Billion. This means Zurich is getting $7,123,287.67 per day from the Exchange! Farmers is nothing but an American cash cow for Zurich. Mutual compnaies and Stock compaies do not have the same massive expenses Farmers has as an Insurance Reciprocal.