Maybe they’ll stop the double digit rate hikes or even drop rates. Maybe commissions will start to go back (doubt it!) to where they were! I can dream can’t I?
Double digit rate increases, commission reductions… it is clear that Travelers is out to compete with their own. It is interesting that the large increases and reductions are being pinned on poor weather results and mono-line homeowner accounts; yet their largest agent in the country writes nothing but monoline homes; GEICO!.
As Geico loads up the books with poor risks; and good agents move their books of business to carriers that are paying decent commissions; adverse risk will kick in. Should be interesting to see how Travelers is looking in another year or two!
What is funny is that rates now are still not as high as they were 5-10 years ago.
I think people forget just how long rates have been declining. I think everyone in our industry is to blame for that.
The huge spike in CAT claims hasn’t helped either (2011 was crazy!).
Travelers is definitely not the only carrier getting double digit rate hikes (well in most regions). They were just the first to realize what needed to be done.
Your are right on – rates are still below what they were on commercial lines 5 years ago. Working on the carrier side, 80% of the agents add no value in the process (including on commercial lines business) – 20% do add value and they find a way to prosper when companies lower commissions (this is no different than any other industry).
Maybe now they can stop cutting commissions to their agents
Good luck!!!!!!!!!!!!! Once taken back, never to be seen again!!
Maybe agents will do more to actually earn their commissions.
Maybe they’ll stop the double digit rate hikes or even drop rates. Maybe commissions will start to go back (doubt it!) to where they were! I can dream can’t I?
Double digit rate increases, commission reductions… it is clear that Travelers is out to compete with their own. It is interesting that the large increases and reductions are being pinned on poor weather results and mono-line homeowner accounts; yet their largest agent in the country writes nothing but monoline homes; GEICO!.
As Geico loads up the books with poor risks; and good agents move their books of business to carriers that are paying decent commissions; adverse risk will kick in. Should be interesting to see how Travelers is looking in another year or two!
What is funny is that rates now are still not as high as they were 5-10 years ago.
I think people forget just how long rates have been declining. I think everyone in our industry is to blame for that.
The huge spike in CAT claims hasn’t helped either (2011 was crazy!).
Travelers is definitely not the only carrier getting double digit rate hikes (well in most regions). They were just the first to realize what needed to be done.
Just another note: more rate = more commission!
Your are right on – rates are still below what they were on commercial lines 5 years ago. Working on the carrier side, 80% of the agents add no value in the process (including on commercial lines business) – 20% do add value and they find a way to prosper when companies lower commissions (this is no different than any other industry).
You really need to appoint better agents.
Travelers you need to go buy somebody!