Not \”producing\” enough (read: Life production) new business because the renewals are falling off faster than Billy be Jingle. Besides, the cost to maintain these agencies is becoming a factor as well. Farmers used to be a big company in California but not anymore.
well once again farmers does its best to blame the agents. First agents DONT make those decisions on premium. The company does, next and most important is agents merely provide the outcome during the quoting process. Farmers, there is a special place in hell for you. And as a former agent I couldnt run from you fast enough.
For a moment, forget about credit and its alleged correlation to losses. In all of these posts, no one has touched upon strictly credit versus premium. Take a look at why credit scoring really makes sense. Generally speaking, those individuals with poor credit scores have a more difficult time paying their bills (exceptions exist of course). Insurance companies, like every other industry, loses millions of dollars to bad debt every year. Insurers are not basing credit scores off of risk of loss, but risk of not receiving premium payment. There is not an industry in our country that is not looking for ways to minimize the leak known as bad debt.
I don\’t think they lose too much to bad debt. The policy gets cancelled when the money runs out. On occasion, there is earned premium, but unless there was a loss between the time the policy renewed and subsequently cancelled (assuming those dates are not the same) then the insurer is not out any actual costs.
Look the problem with insurance is greed and arrogance. Historically insurer\’s have been pooling risks, and pay claims based on that history. Question, how do you use a flawed credit reporting system, and tell consumers that we are doing it to lower premiums. Bologna, it is a cleaner pool for the ability to pay, but the policyholder is not going to benfit, only the company. Where is the obligation as legislated in California to equally take on all comers. Please just rate the risk, not the person, and in the long run the all consumers will benefit.
Einstein – you ain\’t. You say, \”Please just rate the risk, not the person…\” Do you really think that the person is not the most significant factor when it comes to the risk? When it comes to auto insurance, the person IS the big risk! Anything that helps more clearly define how large (or small) a risk that individual is sets a more precise distribution of the premium throughout the insured base. California\’s proposition did nothing but heap more of the premium on the folks who are not having as many losses and benefit those who have greater losses.
This is something the newer Farmers agents learned from the MBA\’s in Los Angeles. They want to be just like State Farm agents and sell the entire account. It isn\’t illegal of them to demand all of your business, it\’s just not good business sense, because Farmers is so uncompetitive in all their lines, you may have the house and cars today, but not tomorrow. Farmers is a bad company and most of the public understands that. I know, we sold Farmers for many years before it tanked in 2003. I pity those fools who are starting out and Farmers is the only round in their chamber. They\’re just hungry, that\’s all. Really hungry.
I had a Farmers agent do a comparison on my home, auto policy recently. The rate he gave was including a life insurance policy which gave me a discount on all the policies. I stayed with my current commpany because he told me that in order for me to get a policy with Farmers he had to write the home, auto and a life policy. I didn\’t think that was legal, is I decided to stay with State Farm although the premium was higher. Why are insurance companies using this snake oil salesmen way of selling there goods. This was a newer agent.
You should check with an older agent. He or she would be more than happy to write the auto and home, you just won\’t the discount for having a life policy.
I have been a satisified customer for all my insurance needs from Farmers for over 50 years. I just recently noticed the changes in the company & increase in its rates. I checked several other companies for quotes on my auto\’s insurance. Wow, I am paying double of what I can get for SAME Coverage with 2 other major companies. I ask Farmers to adjust their rates, no deal, increase my deductable if you want to cut your cost they said.WOW.
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Not \”producing\” enough (read: Life production) new business because the renewals are falling off faster than Billy be Jingle. Besides, the cost to maintain these agencies is becoming a factor as well. Farmers used to be a big company in California but not anymore.
well once again farmers does its best to blame the agents. First agents DONT make those decisions on premium. The company does, next and most important is agents merely provide the outcome during the quoting process. Farmers, there is a special place in hell for you. And as a former agent I couldnt run from you fast enough.
For a moment, forget about credit and its alleged correlation to losses. In all of these posts, no one has touched upon strictly credit versus premium. Take a look at why credit scoring really makes sense. Generally speaking, those individuals with poor credit scores have a more difficult time paying their bills (exceptions exist of course). Insurance companies, like every other industry, loses millions of dollars to bad debt every year. Insurers are not basing credit scores off of risk of loss, but risk of not receiving premium payment. There is not an industry in our country that is not looking for ways to minimize the leak known as bad debt.
I don\’t think they lose too much to bad debt. The policy gets cancelled when the money runs out. On occasion, there is earned premium, but unless there was a loss between the time the policy renewed and subsequently cancelled (assuming those dates are not the same) then the insurer is not out any actual costs.
Look the problem with insurance is greed and arrogance. Historically insurer\’s have been pooling risks, and pay claims based on that history. Question, how do you use a flawed credit reporting system, and tell consumers that we are doing it to lower premiums. Bologna, it is a cleaner pool for the ability to pay, but the policyholder is not going to benfit, only the company. Where is the obligation as legislated in California to equally take on all comers. Please just rate the risk, not the person, and in the long run the all consumers will benefit.
Einstein – you ain\’t. You say, \”Please just rate the risk, not the person…\” Do you really think that the person is not the most significant factor when it comes to the risk? When it comes to auto insurance, the person IS the big risk! Anything that helps more clearly define how large (or small) a risk that individual is sets a more precise distribution of the premium throughout the insured base. California\’s proposition did nothing but heap more of the premium on the folks who are not having as many losses and benefit those who have greater losses.
This is something the newer Farmers agents learned from the MBA\’s in Los Angeles. They want to be just like State Farm agents and sell the entire account. It isn\’t illegal of them to demand all of your business, it\’s just not good business sense, because Farmers is so uncompetitive in all their lines, you may have the house and cars today, but not tomorrow. Farmers is a bad company and most of the public understands that. I know, we sold Farmers for many years before it tanked in 2003. I pity those fools who are starting out and Farmers is the only round in their chamber. They\’re just hungry, that\’s all. Really hungry.
I had a Farmers agent do a comparison on my home, auto policy recently. The rate he gave was including a life insurance policy which gave me a discount on all the policies. I stayed with my current commpany because he told me that in order for me to get a policy with Farmers he had to write the home, auto and a life policy. I didn\’t think that was legal, is I decided to stay with State Farm although the premium was higher. Why are insurance companies using this snake oil salesmen way of selling there goods. This was a newer agent.
You should check with an older agent. He or she would be more than happy to write the auto and home, you just won\’t the discount for having a life policy.
I have been a satisified customer for all my insurance needs from Farmers for over 50 years. I just recently noticed the changes in the company & increase in its rates. I checked several other companies for quotes on my auto\’s insurance. Wow, I am paying double of what I can get for SAME Coverage with 2 other major companies. I ask Farmers to adjust their rates, no deal, increase my deductable if you want to cut your cost they said.WOW.