No wonder the Good Hands people are non renewing all over including 10,000 in South Carolina alone. They are also adjusting roof claims on ACV all the way. I am sure that will test their claims satisfaction guarantee.
I am an independent agent getting a direct stream of referrals from the Allstate agent down the block, good for us. But the insureds are suffering sticker shock when they enter the non-standard markets on the heels of multiple claims and a non-renewal.
But as we look at these accounts, premiums were too low and all of them had low deductibles. I have the same exposure at my house I am paying a higher premium, carrying higher deductibles and paying smaller claims myself. As an industry we are failing to teach people how to manage their insurance and to understand claims catch up with you. Regarding ACV on roofs, I paid for my last roof myself. It was getting old, no hail storm, just age. That is the down side of owning a home, when things wear out you have to be prepared to replace them. (Had to skip the nice vacation that year!) If you have insurance reimburse any part, you are lucky!
Many of the Independent Agency carriers are in the mode of cleaning up their book of policies that have been in force for years. We try to modernize coverage and encourage higher deductibles and bundle coverage for savings. Some of these customers are almost brain dead and it is hard to explain to them the world has changed and companies don’t want to write $500 deductibles anymore. Our carriers are not taking the drastic actions of Allstate. No wonder many of their agents are trying to hook on with other carriers and they formed a guild/union to deal with management over commission cuts among other things.
It will only get better if the political situation in this country improves. Right now, we have a very unfriendly government which is doing things to impede, regulate and control every aspect of our lives. Companies are constantly evaluating and are not making hires of new employees and basically are in a re-underwiting phase of their existing book to try to trim their exposure to loss. I don’t like it, but I have to live with it and do the best I can to serve my customers.
The article actually says CAT losses are lower in 2012 than in 2011. That’s GOOD news. I agree with WYAgent. Allstate did’t price or underwrite correctly and ended up with a losing book. They now have to correct their mistake. It has nothing to do with the government.
Googlegal, If you think companies are not watching the political landscape closely before making decisions on their business, you are living in a dream world. I have talked to several high level executives and they all agree that actions taken by the Federal Government will impact their business and they are not sure what else will come down the pike on regulations that may impede their business. If there is a friendlier business environment after November, I think we will see many of them with a more positive attitude toward growth. Right now, many are pulling in their horns like other businesses and waiting to see what happens.
On 5/2/2012, ALL reported 1 quarter 2012 earnings of $1.42 per share. This result beat the $1.12 consensus of the 25 analysts covering the company and beat last year’s 1 quarter results by 52.69%.
The next earnings announcement is expected on 07/30/2012.
If you believe Allstate lost $820 million I have a used car and some swamp land in Florida you should look at !!!
Companies tend to over reserve claims and that has been going on for many years. It is particularly apparent with our year end statements that show that our loss ratio was just a bit too high to qualify for contingency. We look at the claims and notice the reserved amount is far too high for what happened. In one case, there was a claim that was reserved for $100,000 and the company was supposed to subrogate to get their money back since it was the other parties fault and they didn’t do it and it was charged against our experience. I had a pretty good joust with management over that, but it wasn’t changed. We place very little new business with that company now.
No wonder the Good Hands people are non renewing all over including 10,000 in South Carolina alone. They are also adjusting roof claims on ACV all the way. I am sure that will test their claims satisfaction guarantee.
I am an independent agent getting a direct stream of referrals from the Allstate agent down the block, good for us. But the insureds are suffering sticker shock when they enter the non-standard markets on the heels of multiple claims and a non-renewal.
But as we look at these accounts, premiums were too low and all of them had low deductibles. I have the same exposure at my house I am paying a higher premium, carrying higher deductibles and paying smaller claims myself. As an industry we are failing to teach people how to manage their insurance and to understand claims catch up with you. Regarding ACV on roofs, I paid for my last roof myself. It was getting old, no hail storm, just age. That is the down side of owning a home, when things wear out you have to be prepared to replace them. (Had to skip the nice vacation that year!) If you have insurance reimburse any part, you are lucky!
Many of the Independent Agency carriers are in the mode of cleaning up their book of policies that have been in force for years. We try to modernize coverage and encourage higher deductibles and bundle coverage for savings. Some of these customers are almost brain dead and it is hard to explain to them the world has changed and companies don’t want to write $500 deductibles anymore. Our carriers are not taking the drastic actions of Allstate. No wonder many of their agents are trying to hook on with other carriers and they formed a guild/union to deal with management over commission cuts among other things.
WYagent I wish you would cry this from the pulpit! You are spot on.
This will only continue, it has been a ruff couple of years in the industry. If we wait out the storm it will get better.
It will only get better if the political situation in this country improves. Right now, we have a very unfriendly government which is doing things to impede, regulate and control every aspect of our lives. Companies are constantly evaluating and are not making hires of new employees and basically are in a re-underwiting phase of their existing book to try to trim their exposure to loss. I don’t like it, but I have to live with it and do the best I can to serve my customers.
The article actually says CAT losses are lower in 2012 than in 2011. That’s GOOD news. I agree with WYAgent. Allstate did’t price or underwrite correctly and ended up with a losing book. They now have to correct their mistake. It has nothing to do with the government.
Googlegal, If you think companies are not watching the political landscape closely before making decisions on their business, you are living in a dream world. I have talked to several high level executives and they all agree that actions taken by the Federal Government will impact their business and they are not sure what else will come down the pike on regulations that may impede their business. If there is a friendlier business environment after November, I think we will see many of them with a more positive attitude toward growth. Right now, many are pulling in their horns like other businesses and waiting to see what happens.
On 5/2/2012, ALL reported 1 quarter 2012 earnings of $1.42 per share. This result beat the $1.12 consensus of the 25 analysts covering the company and beat last year’s 1 quarter results by 52.69%.
The next earnings announcement is expected on 07/30/2012.
If you believe Allstate lost $820 million I have a used car and some swamp land in Florida you should look at !!!
Companies tend to over reserve claims and that has been going on for many years. It is particularly apparent with our year end statements that show that our loss ratio was just a bit too high to qualify for contingency. We look at the claims and notice the reserved amount is far too high for what happened. In one case, there was a claim that was reserved for $100,000 and the company was supposed to subrogate to get their money back since it was the other parties fault and they didn’t do it and it was charged against our experience. I had a pretty good joust with management over that, but it wasn’t changed. We place very little new business with that company now.