Study: Insurers’ Customer Retention Critical in Hard Economic Times

April 22, 2009

  • April 25, 2009 at 12:29 pm
    clown. says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    Kuehn v State Farm: From a simple *** to an ***-clown. Team State Farm …
    … correspondence between their attorney, Earl Denham, and those representing State Farm, Lawrence Tucker … Exhibit “E,” E-mail chain between Earl Denham and Lawrence Tucker. Mr.

  • April 25, 2009 at 12:49 pm
    Bernard Rosauer says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    If all as you folks are saying is true, the co needs a culture check. Bad press is building for SF and thats the stuff that detriorates brands… evven very strong brands like SF.

  • April 26, 2009 at 12:33 pm
    but will sell renters policies says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    This is what State Farm wants to be able to cherry pick.
    Not paying for floods, fires and denying tornado coverage—BUT will sell renters policies, except in Jackson, Harrison
    and Hancock counties. Except, except, except—give us a break.

    JACKSON, Miss. (AP) – State Farm says it will resume selling
    renters insurance in parts of Mississippi away from the Gulf Coast.
    Company spokesman David Majors said that State Farm
    will still not selling new homeowners policies anywhere in the
    state, but will sell renters policies except in Jackson, Harrison
    and Hancock counties.
    Illinois-based State Farm stopped selling new homeowners and
    renters policies in February 2007, citing the avalanche of legal
    challenges that followed 2005’s Hurricane Katrina.
    Majors says some existing policyholders, mainly north of
    Interstate 10, will be allowed to reduce their hurricane deductible
    from 5 percent of their policy value to 2 percent, if the customer
    had auto insurance with State Farm as of Nov. 1, 2008, and agrees
    to pay extra……State Farm Hit With $13 Million Verdict for Denying Tornado Coverage

    An Oklahoma couple has won nearly $13 million after a jury failed to buy State Farm’s argument that high winds did not damage their tornado-wracked home

    State Farm Hit With $13 Million Verdict for Denying Tornado Coverage
    By NICK SULLIVAN, Andrews Publications Staff Writer

    An Oklahoma couple has won nearly $13 million after a jury failed to buy State Farm’s argument that high winds did not damage their tornado-wracked home
    State Farm Hit With $13 Million Verdict for Denying Tornado Coverage
    By NICK SULLIVAN, Andrews Publications Staff Writer

    An Oklahoma couple has won nearly $13 million after a jury failed to buy State Farm’s argument that high winds did not damage their tornado-wracked home

    State Farm Hit With $13 Million Verdict for Denying Tornado Coverage
    By NICK SULLIVAN, Andrews Publications Staff Writer

    An Oklahoma couple has won nearly $13 million after a jury failed to buy State Farm’s argument that high winds did not damage their tornado-wracked home

    State Farm Hit With $13 Million Verdict for Denying Tornado Coverage
    By NICK SULLIVAN, Andrews Publications Staff Writer

    An Oklahoma couple has won nearly $13 million after a jury failed to buy State Farm’s argument that high winds did not damage their tornado-wracked home

    State Farm Hit With $13 Million Verdict for Denying Tornado Coverage
    By NICK SULLIVAN, Andrews Publications Staff Writer

    An Oklahoma couple has won nearly $13 million after a jury failed to buy State Farm’s argument that high winds did not damage their tornado-wracked home

    State Farm Hit With $13 Million Verdict for Denying Tornado Coverage
    By NICK SULLIVAN, Andrews Publications Staff Writer

    An Oklahoma couple has won nearly $13 million after a jury failed to buy State Farm’s argument that high winds did not damage their tornado-wracked home

    devastating storms.

    The investigators, Haag Engineering Co. and E.A. Renfroe Co., were not parties to the case.

    Haag is one of the engineering firms State Farm has hired to assess damages from Hurricane Katrina

  • April 26, 2009 at 12:37 pm
    Verdict says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    Sometime you have to just keep repeating over and over and over again so that people will see what this company is doing!

  • April 26, 2009 at 3:12 am
    Bernard says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    Somehow this blog about retention has become a State Farm Sucks commercial. Lets take a step and look at this SF thing objectively.

    State Farm is the largest carrier in the country with, arguably, the strongest brand ever for any insurer. A company doesn’t get that way by doing things poorly to the scale that some suggest. This brings us to the really difficult task of staying #1, retaining customers and growing by positive word of mouth.

    The challenges large companies in America face are really the same as those that smaller companies face. However, those large companies, because of their size, have a much more difficult task when it comes to maintaining a culture of true customer focus. When the focus becomes even a bit fuzzy, small problems or mistakes get brushed under the carpet when they really should be revealed, investigated and learned from. Those small problems stay alive and fester – sometimes for years or even decades until they blow up. I suspect thats what happened in the case of this verdict.

    So as we see problems within our own companies and in others, we need to ask what the root cause of the problems are. Is it the mistakes made in the field? Were the mistakes REALLY mistakes or were they done out of greed or ‘the need to get ahead’? And if the latter, what can be done to bring the company back to the values that got it to be successful in the first place?

    I recently learned that the Toyota Motor Company has both a 50 and a 200 year strategic plan. Their strategy way back when was to become the largest car manufacturer in the world…and to get there by staying true to quality, customer and ensuring that the front line employees in both manufacturing and sales, had a way of communicating value vs. waste (as seen by the customer). They think about increasing value and removing waste at all levels of the organization once activity, one widget at a time. Its a great org., and one that our industry might be able to learn some things from. GM didn’t – and look where they are now.

    Bernard Rosauer
    President
    Evenbetteryet, LLC

  • April 26, 2009 at 5:30 am
    Anonymous says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    State Farm dose all it can to seal records.

  • April 26, 2009 at 5:35 am
    This brings us to the really says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    By Anita Lee
    McClatchy Newspapers
    Advertisement

    BILOXI, Miss. (MCT) — In some cases, State Farm’s top leadership prefers not to share or even keep records that offer insight into how policyholder claims are handled, according to court records.

    Chairman and CEO Edward B. Rust Jr. said in sworn testimony earlier this month that no minutes are kept of quarterly meetings held by the company’s top management, the Chairman’s Council, and that policyholders have no right to information about an investigation State Farm Insurance Cos. has ordered of its relationship with Haag Engineering Co.

    State Farm spokesman Phil Supple said the company doesn’t “intend to-;try this-;case in the media.”

    “State Farm stands by testimony given by President and Vice Chairman Vince Trosino, who said when asked about these allegations, ‘It’s not part of our system. It’s not part of our core values. It’s not what made us the most successful property and casualty insurer, life insurer, in the country.'”

    Juries in two states, Texas and Oklahoma, have found Haag provided biased reports to State Farm to minimize or deny policyholder claims. Mississippi’s attorney general currently is conducting a grand jury investigation to determine whether State Farm and other insurers denied Hurricane Katrina claims through the use of fraudulent engineering reports

  • April 26, 2009 at 5:44 am
    questions should be raised. says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    Press Release

    UNITED STATES DISTRICT COURT

    DISTRICT OF OREGON

    DEBBIE FOLTZ, Plaintiff, vs. STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY, an Illinois corporation, CALIFORNIA INSTITUTE OF MEDICAL RESEARCH AND TECHNOLOGY, INC., dba COMPREHENSIVE MEDICAL REVIEW, and RALPH HOUSEHOLDER, Defendants.

    No. CV-94-6293-HO

    AMENDED

    PROPOSED INTERVENORS’ REPLY TO PLAINTIFF FOLTZ’S AND DEFENDANT STATE FARM’S JOINT RESPONSE IN OPPOSITION TO PROPOSED INTERVENORS’ MOTION TO INTERVENE AND MOTION TO UNSEAL COURT RECORDS

    ——————————————————————————–

    State Farm’s memorandum in opposition to intevenors’ motion to intervene and motion to unseal is an astonishing document. First, State Farm does not contend or even attempt to argue that the sealing of the record in this case was legal. Instead, it attempts to justify the secrecy in this case on the sole basis it bought and paid for the secrecy. This argument is invalid under the law. Moreover, defendant attempts to further bolster this argument by pointing out that there are other cases in this Court and other courts that were similarly settled in secret and also apparently expunged from the public record. There may be other cases where similar questions should be raised.

    A. Defendant’s argument that unsealing the record would unravel the settlement in this case is without merit because the sealing provision and order are illegal and should not be enforced.

    State Farm’s

  • April 26, 2009 at 5:46 am
    bought and paid for the secrec says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    secrecy in this case on the sole basis it bought and paid for the secrecy. This argument is invalid under the law.

  • April 26, 2009 at 5:53 am
    Anonymous says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    Court should grant Intervenors’ motions and unseal all the records to show the history of STATE FARM INSURANCE…



Add a Comment

Your email address will not be published. Required fields are marked *

*