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December 1999 |
Integon has the HOTS, and is proud of it. That's what David Meier, Integon's territorial sales manager reported. Integon's rates are hot and they're proud of their new commission schedule of 15/12 percent new and renewal, up from 12/10. Michael Scott, Integon's senior product manager also reported in to HOTS, pointing out this increase represents a 20+ percent commission increase on some of the tiers. These new rates apply to all five tiers of the GMAC/Integon Preferred Company (Integon GMAC on QuickQuote).
MetLife Auto has also reported in on the commission issue. Leigh Whiddon reports MetGen Plus pays 15/15 while MetGen pays 12/12. Both programs offer a contingency.
Here's the score card thus far:
| Who's Hot? HOT HOT HOT! | 15%+ |
| SIU - Underwriters Guarantee | 17%-23% |
| Eagle Insurance (FC-Multi Car) | 20% |
| Eagle Insurance (Full Coverage) | 18% |
| Urban Insurance (PIP/PD Only) | 17.5% |
| CRE | 17% |
| Southern Group (with SG financing) | 16% |
|
Bristol West |
15/15 |
| Integon | 15/15 |
| MetGen Plus | 15/15 |
| Vision Insurance Group | 15/15 |
| Seminole Casualty | 15/15 |
| Commercial Casualty | 15% |
| Atlantic Indemnity | 15% |
| AIB - Union American | 15% |
| Illinois National (With BI) | 15/12 |
| NSL - Hudson | 15/12.5 |
| Peachtree | 15% |
| Windsor | 15/12 |
| Superior Classic | 15% |
| Urban Insurance | 15% |
| US Security (With BI) | 15% |
| Victoria | 15/12 |
| Home & Auto | 15% |
| Not So Hot | 11% to 14.5% |
| Galway | 13% |
| American Surety | 12.5% |
| US Security (wo/BI) | 12.5% |
| MetGen | 12/12 |
| American Ambassador | 12% |
| NIA (Go America) | 12% |
| Illinois National (without BI) | 11% |
| New Hampshire | 11% |
| Ice Cold | Less the 11% |
| Deerbrook | 10% |
| US Security (W/UM) | 10% |
| Windsor (Zero Ded PIP) | 10% |
| Windsor (No BI) (PIP/PD Only) | |
| Urban Insurance (0 Ded PIP on PIP/PD Only) | 5% |
| Progressive | ??? |
Hey companies! If you are proud of your commissions, let us hear from you. Fax 904-771-6402.
SA Web site is up and running
Have you checked out the new SA Web site? It's not hard to
remember the address ... specialtyagents.com.
Our old friend, Ron Manera, with NCS and ASCC has a new Web hosting company at litespeed.net. He is developing and hosting the site for SA.
A website usually cost $1350 and up. For SA members, it's just $350. At that price, you can't afford to build it yourself.
It's another good reason to join SA.
On the SA site you'll find a discussion group in which all agents
can take part. We'll discuss such things as Progressive, credit scoring,
commissions, or whatever you like. Check it out.
There are also links to the Unite pages on the hillpublishing.com Web site. Read headlines from the next issue, the latest HOTS column and the President's Corner.
To avoid a potential flap over the multiple-tier programs (reduced premium and reduced commission), Glen Godwin at Infinity announced that they were pulling the low-dough deal from the market.
The Florida DOI is currently investigating some multi-tier filings and the Progressive program is under scrutiny in New York.
Credit Scoring
We would like to blame American Surety's new credit
scoring procedures on a "standard company mentality,"
but even a State Farm agent doesn't have to put up with so much minutiae.
Their memo reads, in part, "Once you have determined that AS&C is your company of choice for a particular risk...." As we view it, unless the comparative raters can give accurate quotes, an agent can't afford the ill will that a credit turndown, or premium rate ups generate for the agent.
The reports we are hearing indicate agents are turning to companies who do not credit score to streamline the sales process and not incur additional labor expense... for the company's benefit.
AS&C cites these benefits for the agent: improved retention, lower operational cost, increased value for your book of business, improved CSR productivity, increased revenue, and rate stability.
In reality, aren't these all benefits for the company?
An agent isn't going to send the customer away if he doesn't qualify for the AS&C program.
Some clients require less service that others, and some have greater persistency. Our objective is to write everyone, regardless of the pedigree. Credit scoring companies mean higher operational costs, reduced CSR productivity and decreased revenue because of the lower commissions being paid by these companies.
May we suggest a solution.
For an agent to sell a lower premium product and upload and allow account
sweeps and credit score, here's what we recommend.
Low-dough rates... 16 percent, with upload and account sweeps... 17 percent, with credit scoring... 18 percent.
AS&C is not the lone ranger in the credit scoring controversy, just the latest.
Join a discussion group at specialtyagents.com and let's hear your opinion.