How is Farmers Insurance surviving?

[adjusterjack]

I'm just thinking there has got to be something I'm missing.

There is.

Did any of those agents reveal that they are paid a base salary of $40,000 to $60,000 plus commissions and other benefits. Ask them. That's why they stick with Farmers. They would have to start from scratch somewhere else for a lot less money. Hence the term "captive agent."

And while Farmers, like many other companies, have suffered underwriting losses, Farmers, like many other companies, is worth billions of dollars and can afford to weather the storm until things turn around.

Farmers makes its annual reports available to the public in case you are interested.

Financial Reports - Farmers Insurance Investor Relations

 

[RookieMistakes]

Hi! I work for Farmers Insurance with an agency. I am an insurance producer. I have been working in insurance for over a year. I am an insurance producer. Recently there have been a lot of changes in our company & I have made a huge mistake. So prior to these changes, I could close a home policy & offer replacement cost sometimes I would ask about the year of the roof sometimes not. I was still able to issue a replacement cost home insurance. But, in October of 2022, they rolled out with a new flex program. This program no longer offered Replacement cost, apparently it's to roofs older than 9 years. Well at the beginning the error message I would get was "not available per zip." So I would always quote replacement cost but it would say not available. Okay, so I sold ACV to many people!! I would sometimes update the roof sometimes not, because it was just not a routine I had. Since before I didn't ask, but was still able to sel RCV. Whatever, now with the recent storms we have been having customers have been complaining & my agent had 3 E&Os now!! Because the roof year wasn't updated nor was the ACV explained. So they are reforming my policies, adding RCV for roofs or adding endorsements that were never talked about before. I am in huge trouble it's embarrassing. Now, we are going back to all of our policies recently sold & trying to update the roof, but I just feel so ugly so embarrassed. I am looking for another job just because I feel like I have failed everyone.

 

[marindependent]

agents reveal that they are paid a base salary of $40,000 to $60,000 plus commissions

?

Are Farmers Agent Owners paid that? Or are you referring to some producers for agencies getting paid that?

 

[Allen Trent]

?

Are Farmers Agent Owners paid that? Or are you referring to some producers for agencies getting paid that?

I think he is remembering back to years gone by when there were some captives that got a "salary", but I am not aware of any in the last 20+ years getting an annual salary as most are 1099 contractors, not W2 employees. Most get accelerated commission rates to launch in initial 3-5 years, maybe even an office allowance or a startup income for 6-12 months or maybe a draw. I am not aware of any having gotten a salary for many, many years

 

[marindependent]

I am not aware of any in the last 20+ years getting an annual salary as most are 1099 contractors, not W2 employees. Most get accelerated commission rates to launch, maybe even an office allowance or a startup income for 6-12 months or maybe a draw. I am not aware of any having gotten a salary for many, many years

Yes that is how I know it to be - [in the begining] they get an "accelerated commission" which is due back - if and when they leave or fail to meet other contractual obligations.

But- the system could have changed.

 

[tikibarrister]

Did any of those agents reveal that they are paid a base salary of $40,000 to $60,000 plus commissions and other benefits. Ask them. That's why they stick with Farmers.

Was curious and searched on the Farmer's web site for jobs.

$350K a year salary? Sounds legit...

 

[Markthebroker]

Was curious and searched on the Farmer's web site for jobs.

$350K a year salary? Sounds legit...


View attachment 9795

$350k. You'll be making more doing outside sales for Farmers than a doctor. Right. Lolz.

I have found Farmers to be the most unethical of all my competitors by far, but that may just be because I "compete" with them more than any one entity, and their agents rarely know what they are doing when it comes to commercial policies, and they have to play shenanigans to get the premiums anywhere near remotely reasonable.

 

[Al3x Lee]

their agents rarely know what they are doing when it comes to commercial policies, and they have to play shenanigans to get the premiums anywhere near remotely reasonable.

So true.. it's like they stay blissfully ignorant on purpose and only try to win on price.

 

[Agent 0]

So true.. it's like they stay blissfully ignorant on purpose and only try to win on price.

Yes and Farmers agents constantly get the opportunity to win on price

What have you guys seen Farmers agents do?

We just had another Farmers agent go and steal a course of construction policy from us when we already have the autos and were taking the time to write it properly. She just wrote it cheap as possible with 0 understanding of proper coverage/ underwriting and completely butchered the coverage amount, cost of materials, length of construction.