I guess the theory is to write fewer accounts at a higher premium of those who are willing to pay it. My Travelers book has gone down 25% in the past two years. We have to move them or lose them. My Producers Statement has all parenthesis around every category. They also expect to pay little, if any bonuses since PIF counts are declining and it will be far easier to have a poor Loss Ratio on losses so we, as Travelers Agents are screwed both ways.
I have a question. Are the premiums going UP across the board with Travelers Insurance? Because, I have car insurance with them only. But, i was told they do homeowners, Inland Marine, Commercial, Workers-Comp, Condo, Co-Op, Renters, Motorcycle….etc. I only ask this because i use to have STATEFARM and there rates went through the roof back in 2009. So, i was forced to drop them like a hot potatoe!
Tweety, Premiums are up across the board. We have tried to bundle coverage as much as possible, but the Auto rates are not competitive. If you have an Auto policy with them and you are happy with the premiums, it is probably because you are clean and have a high credit score and live in the right zip code. There aren’t that many perfect customers out there that fits all the criteria for the best rates. We have tried valiantly to let their management know they aren’t competitive in our market, but it falls on deaf ears. They are going to do what they are going to do and we will do what we have to do to protect our business.
I a perfect world with identical policy forms and interpretation of them the loss costs should be equal. Investment returns should be close. Overall overhead should be similar. So must we assume when a rate is given it is to run off or attract business. It could never be we underestimated the market”. Fire the company that can’t be consistent in establishing markets and rates. Commit to the remaining companies, selling your product based on a new term called value and you should become closer to your customers and avoid moving a lot of business.
Buemax, I am all for selling value and for the most part our customers look to us for coverage and service, but in today’s economy, we just can’t get away with $500-1,000 increases in premiums on Personal Lines accounts. The Insurance business is very cyclical and companies change their strategy all the time. They get aggressive and then they back off. We like stability in underwriting without all the big swings, but this market is anything but stable and Travelers leads the pack with taking rate.
For a long time we tried to stop the erosion to our Travelers book in vain. The rate swings prevent you from selling value. They are a great company from coverage/claims service point of view but the consumer says for 1k more premium, I’ll take my chances elsewhere.
Marketing reps just do triage: make sure you rate correctly, verify the account discounts, go EFT, pay in full, etc to save a few hundred dollars when the customer feels hammered.
When I made the jump from captive world, Travelers book got off to a fast start. With a 9.5% unemployment rate in IL and main st in my town getting emptied out – three more mom & pops this month gone, one of then leaving behind a large empty building in the heart of town, well, I guess they can have my contract back. Greedy SOBS. Turning large profits and still sticking it to whome ever is left behind. Sounds just like the captive company I left.
This profit certainly isn’t from my BOB because I have been moving Travelers biz to other carriers as quickly as I can since they cut my commissions!
I guess the theory is to write fewer accounts at a higher premium of those who are willing to pay it. My Travelers book has gone down 25% in the past two years. We have to move them or lose them. My Producers Statement has all parenthesis around every category. They also expect to pay little, if any bonuses since PIF counts are declining and it will be far easier to have a poor Loss Ratio on losses so we, as Travelers Agents are screwed both ways.
I have a question. Are the premiums going UP across the board with Travelers Insurance? Because, I have car insurance with them only. But, i was told they do homeowners, Inland Marine, Commercial, Workers-Comp, Condo, Co-Op, Renters, Motorcycle….etc. I only ask this because i use to have STATEFARM and there rates went through the roof back in 2009. So, i was forced to drop them like a hot potatoe!
Tweety, Premiums are up across the board. We have tried to bundle coverage as much as possible, but the Auto rates are not competitive. If you have an Auto policy with them and you are happy with the premiums, it is probably because you are clean and have a high credit score and live in the right zip code. There aren’t that many perfect customers out there that fits all the criteria for the best rates. We have tried valiantly to let their management know they aren’t competitive in our market, but it falls on deaf ears. They are going to do what they are going to do and we will do what we have to do to protect our business.
The 1 “dislike” to this post must be from a Travelers employee – obviously.
Probably Travelers management rather than an employee.
I a perfect world with identical policy forms and interpretation of them the loss costs should be equal. Investment returns should be close. Overall overhead should be similar. So must we assume when a rate is given it is to run off or attract business. It could never be we underestimated the market”. Fire the company that can’t be consistent in establishing markets and rates. Commit to the remaining companies, selling your product based on a new term called value and you should become closer to your customers and avoid moving a lot of business.
Buemax, I am all for selling value and for the most part our customers look to us for coverage and service, but in today’s economy, we just can’t get away with $500-1,000 increases in premiums on Personal Lines accounts. The Insurance business is very cyclical and companies change their strategy all the time. They get aggressive and then they back off. We like stability in underwriting without all the big swings, but this market is anything but stable and Travelers leads the pack with taking rate.
For a long time we tried to stop the erosion to our Travelers book in vain. The rate swings prevent you from selling value. They are a great company from coverage/claims service point of view but the consumer says for 1k more premium, I’ll take my chances elsewhere.
Marketing reps just do triage: make sure you rate correctly, verify the account discounts, go EFT, pay in full, etc to save a few hundred dollars when the customer feels hammered.
When I made the jump from captive world, Travelers book got off to a fast start. With a 9.5% unemployment rate in IL and main st in my town getting emptied out – three more mom & pops this month gone, one of then leaving behind a large empty building in the heart of town, well, I guess they can have my contract back. Greedy SOBS. Turning large profits and still sticking it to whome ever is left behind. Sounds just like the captive company I left.
Hi Agent. How U doin? Business has popped big time up here.