Employers Direct Sheds Direct Calif. Workers’ Comp; Will Return with Brokers

August 26, 2009

  • August 26, 2009 at 3:32 am
    George says:
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    First, the company comes into the CA market the cheapest and most aggressive, touting the fact they have no legacy claims and they don’t have the huge expense of independent agents. They show too-good-to-be-true results until just after they are purchased by Allegheny. They post ugly, ugly losses, including increases from previous years. They blame the competitors for being too cheap and the California trends for all their problems and pull out, saying ” I don’t want to play anymore.” Now, just a few months later, they are jumping in with both feet, hoping to get a lot of premium by converting to an agency company.
    Hmm. Fremont was an In-Out company, but not that bad.

  • August 26, 2009 at 3:42 am
    mm says:
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    I bet the issue is/was volumne. Since a majority of the WC marketplace is controlled by agents, they finally realized that in order to be profitable (or close to it) they needed us agents!

  • August 27, 2009 at 7:13 am
    White Fang says:
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    How dispicable can you get,now we are going to place the accounts that Jim Little didn’t suck out of the agency system
    who would be such a fool.
    I say let them eat cake

  • August 27, 2009 at 8:14 am
    J says:
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    By George you’re right! Jim Little has left the brokers who trusted him & his companies holding the bag in the past, I don’t know any brokers who would make that mistake again. He makes an announcement about his leaving the State, bashing the California market in the process and claiming his victim-status, and a month later he has Mark Webb trying to pave the way back into the market. Mr. Webb, you’re better than that… why don’t you take your good name to a more reputable company?

  • August 27, 2009 at 8:37 am
    Bob says:
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    George, I am with you. Did any other company out there bash independent agents and brokers more than ED? According to them, weren’t we the sole reason why they could offer prices that were 40% or more below the rest of the market? Little is right back to his old tricks. Wouldn’t it be great to send him a resounding “No Thanks” message? Unfortunately, they’ll continue undercutting the market until they are belly up and if you aren’t bringing your client their low price, you risk losing your account to the next agent who does.

  • August 27, 2009 at 6:26 am
    Tom says:
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    If they couldn’t make money with a 33% rate increase and without paying commission, how can they make a profit by paying commissions and fees???

  • August 28, 2009 at 12:02 pm
    Insurance Guy says:
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    From another perspective, a company needs a great claims operation to make money in WC. You have to ask yourself, do they have that type of operation? If not, you should look elsewhere.



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