I train 1000+ agents on small commercial P&C and Work. Comp. products. We write more than a Billion in volume at a 78% loss ratio. This could be a great venture for Travelers/St. Paul.
A 78% loss ratio is profitable? Do their underwriter and and producers work for peanuts? I can see 78% profitable for a direct writer, but no way for an agency based insurance company.
This is a long awaited improvement to their system. Too bad the rest of the operation isn’t more agent friendly. I’m just afraid we’ll write all this new business and then they’ll either want to non-renew it or increase the premiums by 15-20% every year. And we had very low loss ratios. This happened to us before. Growing with this carrier has been difficult.
Id say you get it, including the IBNR loads, to say 40% and you can pretty much do what you want with them. At 78% your cloients and Travelers are only exchanging money.
If they were REALLY interested in the SBM they would intoduce the “Pay As You Go” model for Workers’ Compensation. We make this product available currently to P&C agents and it outsells traditional WC 10 to 1. When you look at the “combined” commission on this product (the WC commission + the commission we pay on payroll processing) the agent can realize a 15%+ commission on the product. AND, MOST IMPORTANTLY, the product is a win-win for the agent and the insured. C’mon, aren’t you all tired of the smae old, same old industry “offerings?”?
It sounds like this new product line will be auditable if it’s based on payroll/sales. It looks like the regionals (the smart ones anyway) will be getting lots of great business soon!
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I train 1000+ agents on small commercial P&C and Work. Comp. products. We write more than a Billion in volume at a 78% loss ratio. This could be a great venture for Travelers/St. Paul.
How do you figure a 78% loss ratio is good? Do you mean combined ratio?
A 78% loss ratio is profitable? Do their underwriter and and producers work for peanuts? I can see 78% profitable for a direct writer, but no way for an agency based insurance company.
56% for direct is max you would want once you factor in expenses you push 94%
This is a long awaited improvement to their system. Too bad the rest of the operation isn’t more agent friendly. I’m just afraid we’ll write all this new business and then they’ll either want to non-renew it or increase the premiums by 15-20% every year. And we had very low loss ratios. This happened to us before. Growing with this carrier has been difficult.
My system can not open your attachments
John…what school of ins did you go to, at 78 % LR, your 1 bil is a losing book, get ready for a huge rate increase
Id say you get it, including the IBNR loads, to say 40% and you can pretty much do what you want with them. At 78% your cloients and Travelers are only exchanging money.
If they were REALLY interested in the SBM they would intoduce the “Pay As You Go” model for Workers’ Compensation. We make this product available currently to P&C agents and it outsells traditional WC 10 to 1. When you look at the “combined” commission on this product (the WC commission + the commission we pay on payroll processing) the agent can realize a 15%+ commission on the product. AND, MOST IMPORTANTLY, the product is a win-win for the agent and the insured. C’mon, aren’t you all tired of the smae old, same old industry “offerings?”?
It sounds like this new product line will be auditable if it’s based on payroll/sales. It looks like the regionals (the smart ones anyway) will be getting lots of great business soon!