This is an open letter to the management of The Travelers. The article insinuates that you do business through the Independent Agency plant, however, you have constantly used alternative methods of distribution and have recently increased rate to a point that we, the independent agents have had to resort to book transfers or constant rewrites in order to keep our clients.
Instead of purchasing your way into becoming number one, why not support your agents.
I agree Joe. Travelers was formerly our #1 carrier in the agency for several years and now they have shrunk substantially due to their new philosophy. The idea is to write fewer customers at a higher premium for those willing to stay with them. They also have a direct platform for Auto, but I doubt they write much with it considering how their rates are. On other blogs about Travelers, agents keep saying they are moving Travelers business to other carriers who seem to want to write business. I guess they think they can come out better in Canada with this acquisition.
Travelers responsibility as a public company is to it shareholders and not their agents. If they beleive their strategy will generate the highest return why would they not pursue that? Their shareholders want them to earn the highest return and this is the path that they beleive will get them closer than simply aligning with agents. Honestly, agents want loyalty from carriers but is also very limited with loyatly from agents to carriers and many agents simply sell the lowest price. Just a little balance to your statements.
Really? Is a publicly traded company’s first priority the investors or have we said this for so long we believe it? I don’t know the answer but I do know that the stockholders choose to invest, assume the risk, and can turn to another investment in a day. It doesn’t seem like that type of relationship should take priority over employees, customers, vendors, and other long term partners. I just wonder if these CEO’s and Sr. Managers who have stock options and large stock holdings have us believing that the stockholder is the priority. Quite frankly, at least for personal lines, Travelers doesn’t stand a chance if they don’t invest in IS and product design. Too many companies have a head start on them.
We understand that Travelers is a stock company. We also understand that if agents don’t place business with them, their revenue will fall dramatically. Many Travelers agents I know have been doing book transfers due to their pricing strategy. We haven’t done that yet, but we do have to move business rather than lose it and their volume with us is down 25% in the past 2 years. Maybe they can make it up with their new found Canadian income.
KK – you are obviously a company person because what you fail to understand is that there would be no Travelers without the independent agent. WE are what got them where they are and they turn around and s*it all over us. If I have the opportunity to move business from them, I will – just for the hell of it. The same for any other company that treats us in a similar fashion (AIG, Progressive, etc.)
These comments show a lack of understanding of the Canadian Market
Dominion of Canada is a large Insurer mainly personal line with some commercial all with Independent agents (or brokers in Ontario)
Travellers covers large commercial risk only no personal liens in Canada through Independent agents or brokers as well
Good info, Craig. The acquisition seems to make good business sense for the Travelers when given those facts. I still will not place any business with them, though. Not until they come crawling back on hands and knees, which they will eventually. They all do.
Apparently, all the rate increases they have given to US policyholders have paid off.
This is an open letter to the management of The Travelers. The article insinuates that you do business through the Independent Agency plant, however, you have constantly used alternative methods of distribution and have recently increased rate to a point that we, the independent agents have had to resort to book transfers or constant rewrites in order to keep our clients.
Instead of purchasing your way into becoming number one, why not support your agents.
Thanks for listening!
I agree Joe. Travelers was formerly our #1 carrier in the agency for several years and now they have shrunk substantially due to their new philosophy. The idea is to write fewer customers at a higher premium for those willing to stay with them. They also have a direct platform for Auto, but I doubt they write much with it considering how their rates are. On other blogs about Travelers, agents keep saying they are moving Travelers business to other carriers who seem to want to write business. I guess they think they can come out better in Canada with this acquisition.
Agent and Joe,
Travelers responsibility as a public company is to it shareholders and not their agents. If they beleive their strategy will generate the highest return why would they not pursue that? Their shareholders want them to earn the highest return and this is the path that they beleive will get them closer than simply aligning with agents. Honestly, agents want loyalty from carriers but is also very limited with loyatly from agents to carriers and many agents simply sell the lowest price. Just a little balance to your statements.
Really? Is a publicly traded company’s first priority the investors or have we said this for so long we believe it? I don’t know the answer but I do know that the stockholders choose to invest, assume the risk, and can turn to another investment in a day. It doesn’t seem like that type of relationship should take priority over employees, customers, vendors, and other long term partners. I just wonder if these CEO’s and Sr. Managers who have stock options and large stock holdings have us believing that the stockholder is the priority. Quite frankly, at least for personal lines, Travelers doesn’t stand a chance if they don’t invest in IS and product design. Too many companies have a head start on them.
We understand that Travelers is a stock company. We also understand that if agents don’t place business with them, their revenue will fall dramatically. Many Travelers agents I know have been doing book transfers due to their pricing strategy. We haven’t done that yet, but we do have to move business rather than lose it and their volume with us is down 25% in the past 2 years. Maybe they can make it up with their new found Canadian income.
KK – you are obviously a company person because what you fail to understand is that there would be no Travelers without the independent agent. WE are what got them where they are and they turn around and s*it all over us. If I have the opportunity to move business from them, I will – just for the hell of it. The same for any other company that treats us in a similar fashion (AIG, Progressive, etc.)
These comments show a lack of understanding of the Canadian Market
Dominion of Canada is a large Insurer mainly personal line with some commercial all with Independent agents (or brokers in Ontario)
Travellers covers large commercial risk only no personal liens in Canada through Independent agents or brokers as well
Not every market functions like the US
Good info, Craig. The acquisition seems to make good business sense for the Travelers when given those facts. I still will not place any business with them, though. Not until they come crawling back on hands and knees, which they will eventually. They all do.