Boo for Paula Reynolds! Non-insurance execs rarely work out and that will be the case here. With Mike & Mike gone – the genius is gone too. No offense to Paula but have not heard anything good yet. Competitors will pick SAFECO\’s bones and take the good people. So sad for the wonderful people of SAFECO.
With these changes, Paula just loaded a gun and put it to her head. Its only time now. LaRocco had it right, evolution, not revolution,
she won\’t last more than two years. The employees of Safeco must be wondering after the last five years when its going to finally stabilize.
The street is calling it right with the reaction to the stock price.
Isn\’t she from a public utility company running an insurance company..low cost provider w/ new services etc..how many times have we heard that from carriers.
for a once strong company. Cannot survive the loss of McGavick & LaRocca. Charismatic leadership is gone. We have seen this low cost go direct model before implemented by non insurance professionals. You can come in from another industry and lead a company but keep your insurance leadership expertise that has ties to your field operations and agents. Time will tell. Good luck to Safeco. We can\’t afford to have you go down but the field staff have their resumes all over the street.
The first paragraph suggests that SAFECO will be a low-cost provider with distinctive products and services. Good luck – where will the revenue come from to support those distinctive products and services if at the same time SAFECO is driving to lower costs. The only way to be \”low cost\” in a commodity market such as personal lines is: (1) highly automated, (2) plain vanilla products, and (3) low wage employees.
The industry has been trying to build a better mousetrap for the past 25 years (at least) and so far nobody has been enough of a genius to figure it out.
public utility companies for years have been trying to operate cheaply, making their \’stockholders\’ happy. thats why the interal systems of today are deteriorating, and the utility systems are quickly become overloaded and undependable. same logic in practice here too. too bad, safeco was once a great insurance company, its becoming a low cost market for auto, nothing more….
Glad I am not an adjuster at Safeco. A new VP of Claims and Services who \”will be responsible for transforming the experience\” of agents and insureds? What happpened to handling claims efficiently? Background in finance and business process improvement but no claims experience? Bet you will see lots of new expensive systems to \”improve\” claims but will there be anyone who can tell which offices are doing a good job and which just look good? It never hurts to have done it right (and wrong sometimes) yourself.
Safeco (and American States prior to the acquisition) has been our lead market for decades, and they began \”Hartfordizing\” us about six years ago. Most of their underwriting and management talent has left or is leaving, and they\’ve done it to themselves. They see no value in agents any longer; it\’s a race to the bottom premium number ala GEICO, Progressive, et al. What a terrible shame. A brilliant small business underwriter decapitated.
When Paula was hired, I knew the clock was ticking. No clue as to the underlyng business model, just someone that can clean up a balance sheet in preparation for a sale or merger. The only question now will be whether they are sold before they can dismantle it from the inside.
Who will it be: Travelers, AIG, Zurich or Berkshire Hathaway/White Mountains? My money is on White Mountains. They already bought Safeco Life; now for the rest of the account.
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Boo for Paula Reynolds! Non-insurance execs rarely work out and that will be the case here. With Mike & Mike gone – the genius is gone too. No offense to Paula but have not heard anything good yet. Competitors will pick SAFECO\’s bones and take the good people. So sad for the wonderful people of SAFECO.
With these changes, Paula just loaded a gun and put it to her head. Its only time now. LaRocco had it right, evolution, not revolution,
she won\’t last more than two years. The employees of Safeco must be wondering after the last five years when its going to finally stabilize.
The street is calling it right with the reaction to the stock price.
Isn\’t she from a public utility company running an insurance company..low cost provider w/ new services etc..how many times have we heard that from carriers.
for a once strong company. Cannot survive the loss of McGavick & LaRocca. Charismatic leadership is gone. We have seen this low cost go direct model before implemented by non insurance professionals. You can come in from another industry and lead a company but keep your insurance leadership expertise that has ties to your field operations and agents. Time will tell. Good luck to Safeco. We can\’t afford to have you go down but the field staff have their resumes all over the street.
The first paragraph suggests that SAFECO will be a low-cost provider with distinctive products and services. Good luck – where will the revenue come from to support those distinctive products and services if at the same time SAFECO is driving to lower costs. The only way to be \”low cost\” in a commodity market such as personal lines is: (1) highly automated, (2) plain vanilla products, and (3) low wage employees.
The industry has been trying to build a better mousetrap for the past 25 years (at least) and so far nobody has been enough of a genius to figure it out.
There is a tombstone with SAFECO\’s name on it – right next to Kemper\’s.
public utility companies for years have been trying to operate cheaply, making their \’stockholders\’ happy. thats why the interal systems of today are deteriorating, and the utility systems are quickly become overloaded and undependable. same logic in practice here too. too bad, safeco was once a great insurance company, its becoming a low cost market for auto, nothing more….
Glad I am not an adjuster at Safeco. A new VP of Claims and Services who \”will be responsible for transforming the experience\” of agents and insureds? What happpened to handling claims efficiently? Background in finance and business process improvement but no claims experience? Bet you will see lots of new expensive systems to \”improve\” claims but will there be anyone who can tell which offices are doing a good job and which just look good? It never hurts to have done it right (and wrong sometimes) yourself.
Safeco (and American States prior to the acquisition) has been our lead market for decades, and they began \”Hartfordizing\” us about six years ago. Most of their underwriting and management talent has left or is leaving, and they\’ve done it to themselves. They see no value in agents any longer; it\’s a race to the bottom premium number ala GEICO, Progressive, et al. What a terrible shame. A brilliant small business underwriter decapitated.
When Paula was hired, I knew the clock was ticking. No clue as to the underlyng business model, just someone that can clean up a balance sheet in preparation for a sale or merger. The only question now will be whether they are sold before they can dismantle it from the inside.
Who will it be: Travelers, AIG, Zurich or Berkshire Hathaway/White Mountains? My money is on White Mountains. They already bought Safeco Life; now for the rest of the account.