Greedy, greedy, greedy. Profits are up, CAT losses are down, and a 7% increase is not enough for them! I hope they lose all their good accounts to other markets that are not taking rate hikes as high. What’s wrong with 3-4% a year?
We have been disgusted with Travelers rate taking for the past 3 years. They were among the first to start it and expected other markets to fall into line with them. When that didn’t happen, they started losing accounts right and left. Their rep now says that they are “positioning themselves” for growth in 2013 which is a code word for them expecting the market to catch up to their rates. They may be right, but it is not helpful right now as their volume has gone down 25% with our agency. The small business unit is equally uncompetitive with their hikes. The only thing we can write with Travelers now is their specialty markets in Oil & Gas and Financial Services.
Went through this with Big Blue several years back. When Regional Managers told their sales force that “each line would stand on its own and produce a 12% return”…..I thought to myself, “12%? Even Jesus only wants 10%”.
Good Hands – it sounds like you need to stay in bed with mutuals. Stock companies must attract investors, and they are held to more prudent underwriting and reporting standards and guidelines. To attract investment, you require a return on that investment. And 10% doesn’t cut it. Some companies target 18% or 20% to attract investment, and in turn, make further acquisitions.
Our agency has some old program business that ticks all of the boxes for the perfect risk that is consistently getting 20%+ rate increases at renewal with no explanations. When you challenge your underwriter, you are told that “the model prices it, we have no control”. Doesn’t give me any incentive to want to write any new business with support like that!
Thank goodness they have figured out that they can not keep buying bad business. They have been writing the bottom quality contractor accounts for the last 5 years. Stock company’s are always tidal in nature. In and Out. Glad to see this one finally go out!
Greedy, greedy, greedy. Profits are up, CAT losses are down, and a 7% increase is not enough for them! I hope they lose all their good accounts to other markets that are not taking rate hikes as high. What’s wrong with 3-4% a year?
We have been disgusted with Travelers rate taking for the past 3 years. They were among the first to start it and expected other markets to fall into line with them. When that didn’t happen, they started losing accounts right and left. Their rep now says that they are “positioning themselves” for growth in 2013 which is a code word for them expecting the market to catch up to their rates. They may be right, but it is not helpful right now as their volume has gone down 25% with our agency. The small business unit is equally uncompetitive with their hikes. The only thing we can write with Travelers now is their specialty markets in Oil & Gas and Financial Services.
What else did you expect from Fishman?????
Went through this with Big Blue several years back. When Regional Managers told their sales force that “each line would stand on its own and produce a 12% return”…..I thought to myself, “12%? Even Jesus only wants 10%”.
Good Hands – it sounds like you need to stay in bed with mutuals. Stock companies must attract investors, and they are held to more prudent underwriting and reporting standards and guidelines. To attract investment, you require a return on that investment. And 10% doesn’t cut it. Some companies target 18% or 20% to attract investment, and in turn, make further acquisitions.
Greed is right: I Have YET to see a RATE DECREASE IN New Jersey!
Our agency has some old program business that ticks all of the boxes for the perfect risk that is consistently getting 20%+ rate increases at renewal with no explanations. When you challenge your underwriter, you are told that “the model prices it, we have no control”. Doesn’t give me any incentive to want to write any new business with support like that!
Do any agents read this stuff? Seriously? Gee, I don’t know, Traveler’s is increasing their rates. They must be for sale.
Thank goodness they have figured out that they can not keep buying bad business. They have been writing the bottom quality contractor accounts for the last 5 years. Stock company’s are always tidal in nature. In and Out. Glad to see this one finally go out!