That Combined Ratio turn-around is eye-opening. Would be very impressive if they can keep the momentum for the remainder of ’22. Especially with the relatively loose roof guidelines they’re working with compared to the rest of the market here.
Not ruling that out. But if their rates stay competitive, guidelines remain relatively loose, and competitors are either going insolvent or have generally higher rates – I’d expect the lower commissions to have a more muted impact. On other hand, if enough competitors hang in there with competitive/close enough rates, expect them to become a poster child for adverse selection between lower commissions, relatively looser guidelines, & limited use of Insurance Scores.
I find it funny the CEO of UPCIC indicated they ‘renegotiated agencies’ commission rates’. I’m an agent that writes with Universal P&C. Let me tell you how they “renegotiate” commission rates.
In 2021 we received a letter from UPCIC that said your commissions are being reduced from 12% to 10%.
Then in 2022 we received a letter from UPCIC saying our commissions were being reduced from 10% to 8%.
I’ve always wondered what Universal P&C was doing right considering that they write heavily in SE FL. I think they’ve gotten away with it by writing in areas with significant hurricane exposure but no hurricane activity so they get to enjoy that juicy hurricane premium without many claims. Other than a bit from Irma and a glancing blow from Dorian, I don’t remember the last time SE FL got any real hurricane damage. Regardless, I’m happy for them and hope they can continue.
That Combined Ratio turn-around is eye-opening. Would be very impressive if they can keep the momentum for the remainder of ’22. Especially with the relatively loose roof guidelines they’re working with compared to the rest of the market here.
Expect now that they likely cut their sales force’s commissions, noone will want to sell their product.
Not ruling that out. But if their rates stay competitive, guidelines remain relatively loose, and competitors are either going insolvent or have generally higher rates – I’d expect the lower commissions to have a more muted impact. On other hand, if enough competitors hang in there with competitive/close enough rates, expect them to become a poster child for adverse selection between lower commissions, relatively looser guidelines, & limited use of Insurance Scores.
I find it funny the CEO of UPCIC indicated they ‘renegotiated agencies’ commission rates’. I’m an agent that writes with Universal P&C. Let me tell you how they “renegotiate” commission rates.
In 2021 we received a letter from UPCIC that said your commissions are being reduced from 12% to 10%.
Then in 2022 we received a letter from UPCIC saying our commissions were being reduced from 10% to 8%.
The negotiation is simple. Don’t like it? You can terminate.
I’ve always wondered what Universal P&C was doing right considering that they write heavily in SE FL. I think they’ve gotten away with it by writing in areas with significant hurricane exposure but no hurricane activity so they get to enjoy that juicy hurricane premium without many claims. Other than a bit from Irma and a glancing blow from Dorian, I don’t remember the last time SE FL got any real hurricane damage. Regardless, I’m happy for them and hope they can continue.