RickyG
Expert
- 63
Got this email today. HOAIC (Homeowners of America Insurance Company) a monoline home carrier unleashed this beauty today. I am not sure I have ever seen a company offering 0% compensation for new business at any time.
"RICHARD,
The homeowners insurance industry continues to face numerous challenges that are only accelerating in severity. Carriers’ costs have continued to escalate in the first nine months of this year due to increased storm activity, inflation, continued supply chain challenges, and reinsurance pricing. These results are simply not sustainable. Given these challenges, Homeowners of America (HOA) must take proactive measures to adjust various aspects of our business and implement changes to achieve a more favorable combined ratio and ensure we are a stable and healthy carrier into the future for both our policyholders and agency partners.
Effective October 1, 2023, we will be changing our commission percentages for new and renewal business. For all geographies other than Georgia and South Carolina, commissions will be decreasing by approximately 6% for new and renewal business in each commission tier. Georgia commission will be 0% for new and renewal business. South Carolina commission changes are being reviewed by the SC Department of Insurance with an anticipated effective date of December 1, 2023.
In summary:
In addition to this email, you will receive a certified letter regarding this change within the next few weeks that will include your updated Commission Schedule. There will be no need for your agency to take any action...."
"RICHARD,
The homeowners insurance industry continues to face numerous challenges that are only accelerating in severity. Carriers’ costs have continued to escalate in the first nine months of this year due to increased storm activity, inflation, continued supply chain challenges, and reinsurance pricing. These results are simply not sustainable. Given these challenges, Homeowners of America (HOA) must take proactive measures to adjust various aspects of our business and implement changes to achieve a more favorable combined ratio and ensure we are a stable and healthy carrier into the future for both our policyholders and agency partners.
Effective October 1, 2023, we will be changing our commission percentages for new and renewal business. For all geographies other than Georgia and South Carolina, commissions will be decreasing by approximately 6% for new and renewal business in each commission tier. Georgia commission will be 0% for new and renewal business. South Carolina commission changes are being reviewed by the SC Department of Insurance with an anticipated effective date of December 1, 2023.
In summary:
- Georgia - 0% commission for New & Renewal business
- South Carolina - planned reduction to 6.4% for New & Renewal business on or before December 1, 2023 (pending SC DOI approval)
- All Other States and Geographies - Reduction of 6% for New & Renewal business in each Commission Tier
In addition to this email, you will receive a certified letter regarding this change within the next few weeks that will include your updated Commission Schedule. There will be no need for your agency to take any action...."
