Allied/Nationwide

[insurance1822]

^ Is it on your whole book or just new business moving forward? How are the reps justifying this to you?

 

[Herkster]

Whole PL book, from what we understand. And, we used to have a field sales rep until about 6 months ago, when he got replaced with an in-office one that hasn't called and talked to us....at all.

The worst part, we're AIDCO, so we are essentially "captive" on the home/auto side, in that we have to quote with them first before trying elsewhere. Good thing they are usually extremely competitive, but this still stinks.

 

[insurance1822]

What's AIDCO? You're captive to Allied? I never knew that existed? Why would you do that?

 

[Herkster]

What's AIDCO? You're captive to Allied? I never knew that existed? Why would you do that?

I have no idea what it stands for. I'm just a producer in the agency, and they were an "AIDCO" agency long before I came on board (pushing 25 years in the program). It's very profitable, the bonuses that come with it are extremely generous as long as you have great retention (way north of 90%, and I can probably count on one hand those that have left us this year for reasons other than dying) and a great loss ratio, which we have both of (except last year...damn death claim)....knock on wood.

 

[shawnmwalker]

Aidco is like their captive program- Yes.

 

[insurancemansam]

I received the letter yesterday. Cutting all renewals to 10%. Book roll starts Monday as I only had small portion of my book with them. Something seemed odd as I just contracted with them(Allied)1.5 years ago and my rep who was with them for 20 years was all the sudden gone. Scary thing is that Safeco, Travelers, Allied/Nationwide have all reduced commission in last couple years.

 

[MidcoastMaine]

It started in Feb of this year nationwide with their new policy offering "Smart Plan home/auto".

They use an "Underwriting Quality Index" and then also look at the growth of the entire agency in multiple angles like retention, cross selling, line of business production, profitability and more. Bonus makes up the lost commission but can also get 2% more.

Next year there is talk of them increasing the bonus substantially and making the bonus harder to hit for small non producing agents and filtering the money to the higher volume agents. My office is ready for that lol. My software took my producers from 75k in premium last few months to 125k in premium this month. That's home/auto premium and not commercial.

What software is that!?

 

[Beachguy]

They all see how much progressive makes. Not a bright future for personal. Smart cars , fewer claims, lower premium and commission.

Small regionals are the way to go. Band against these mammoth carriers or die.

 

[insurance1822]

How are they selling these to agencies? Just "Hey we're lowering commissions but you're going to write enough new business b/c of it to break even?"

And Todd's software is revolutionizing the insurance business. You will make 1 billion dollars w/ it & if you order in the next 5 minutes you'll get a free keychain flashlight w/ it

 

[FL P&C Broker]

if you order in the next 5 minutes you'll get a free keychain flashlight w/ it

Does it have a bottle opener attached?