Farmers Agents and Former Farmers Agents: Please Advise

[Rob Lion]

This bodes well for the indies. When I was writing up my biz plan for State Farm, I was surprised that most of the market in my state was NOT with the big names. Per the above- that can happen at State Farm too. Apparently they will have their regional sales lead breathing down your neck and you'll be chasing goal posts that move and often not even published...and forced to sell lines which aren't competitive. I cringed this past weekend hearing my niece sold another family member Life through them... she's just a new agent and is completely unaware of how uncompetitive their Life products are.

Imagine selling all your neighbors,friends, & family all to be let go after 90 days and having to rewrite them with indy companies after words. Quick way to lose all your close ones haha.

 

[andy_M]

Imagine selling all your neighbors,friends, & family all to be let go after 90 days and having to rewrite them with indy companies after words. Quick way to lose all your close ones haha.

Does Farmers have a non-compete? State Farm's was for a year. BAD DEAL while you are out for that commercial lease, furniture and a room full of employees.

 

[Rob Lion]

Does Farmers have a non-compete? State Farm's was for a year. BAD DEAL while you are out for that commercial lease, furniture and a room full of employees.

I didn't even know what a do not compete was back then, bankers life had one i still rewrote my managers clients tho.

 

[BADTROUT]

Does Farmers have a non-compete? State Farm's was for a year. BAD DEAL while you are out for that commercial lease, furniture and a room full of employees.

My understanding is their non-solicit is for one year after they leave. The agencies we have converted ALL have stated that.

 

[Markthebroker]

It makes me sad to say I constantly see bad things from Farmers. Both agents and corporate. They have some nifty commercials, and are competitive on HOA's and have started offering guaranteed replacement coverage which is great. But that's it.

For 8 years watching them write crap policies, employ shady tactics, charge high rates, screw their agents and deny claims, I'd stay away.

There's a reason those offices are so cheap.

 

[Prior FIG agent]

I was a Farmers agent for over 30 years and had a large book of business which peaked at over 6,000 policies. Farmers inability to select a good risk caused large rate increases on good clients who then left. We used credit scoring as the major factor in rates. I had someone with 4 negligent accidents who was paying less than a lady who had not had a claim in 22 years because hhis credit was perfect and hers was bad. This kind of thing was common. When they cut our home commissions by 28% and car by 10%, and started charging for computer sites, signs, not allowing us to have more than one agent in an office, etc, it was time to go. I sold my agency and have never regretted it. My guess is that there will be no more district managers in the next 3 or 4 years, and there will be a tiny number of agents. I have to believe that number is shrinking. You may think all this is subjective vitriol written by an angry ex agent, but it is not. The objective number can be found on the web. Our market share has dropped every year since about 2000 and has gone from apprx 12% to 3.01% now. This is a loss of about 75% of market share. Of course, premiums are increasing but they are now the 10th largest company in the US, and they used to be tied with Allstate for 2nd. I would not be an agent for them now, go independent.