California Agents - What are you doing in this crisis environment?

[Rochambeau]

All CA agents know what I'm talking about. Political hacks run the DOI and have been refusing to grant rate increases because election. Carriers are losing money and tightening up the ship. Refusing payment plans, removing themselves from comparative raters, refusing binding for all but the prettiest risks, etc..

What are y'all doing? We're getting pretty slick and how we handle these payment plan issues but their blocking of policies for as long as 2 weeks is making us lose one sale after another after another.

Appreciate any input.

 

[Markthebroker]

I have taken up smoking, as well as drinking in the morning. I have also started beating my children.

In all seriousness, I have an established book and great relationships with my clients. I explain what is going on, and I find the best alternatives when they get non renewed. I would call the whole situation extremely bothersome, but that's about it. It's taking more of my time and irritating me, but not much beyond that. The premiums are going up pretty fast which is keeping up with inflation, which is nice. FYI, I am commercial p&c, no personal insurance, life or health.

 

[marindependent]

There is no doubt about it the California Insurance Market market is in line for a serious reckoning. The only thing that makes me smile is that the Commercial Agents now seem to be getting hit with it as well.

Certainly the DOI is playing a role in this, but the wildfire and tort situation is pretty crazy right now.

My guess is that the NonAdmitted market and Insurers of last result will play an outsized role, From a personal lines perspective - the only thing that I cannot understand is how SF keeps writing homeowners policies in places no admitted carrier will.

Best of Luck to you

 

[Life Hawk]

Not a P&C guy, but do any of you see players pulling out of the California market because of all the hoopla?

 

[marindependent]

It depends on what you mean by "players" but I see players dropping out in various forms left and right.

 

[Rochambeau]

Well, I'm mostly personal lines and the Insurance Commish hasn't granted a rate increase in 2.5 years except for one that he just approved right before the election for Allstate. Most of the carriers have pulled back, insisting on full pay or 2-pay and blocking binding for all business except the best of the best. We've lost quite a few pieces of business because they don't want to wait around 2 weeks for the carrier to approve them.

 

[marindependent]

don't want to wait around 2 weeks for the carrier to approve them.

Yes - but where....will they go?

 

[Rochambeau]

Yes - but where....will they go?

Not with me is my point. LOL

But seriously folks... Never thought I'd look at a 98% retention rate and be bitter about it.

 

[Al3x Lee]

Just got this today

 

[Rochambeau]

Yeah, I am hearing that personal auto companies have seen a few more rate filings approved and I hear from my major carrier that they are getting questions from the DOI regarding their filing so at least they are getting their filings worked on finally.

I guess Harvey Rosenfeld's corrupt Consumer Watchdog organization got really pissed when they got shut out of GEICO's rate hearings. Not sure what to read into that row between CW and Lara but it is funny.