Insurance rates

[NY independent]

After seeing State Farm's $12 bill underwriting loss on Friday, I think your next renewal will be priced a lot higher.

 

[adjusterjack]

That'll be next June. Long way off.

 

[eeveecali]

How much do the teens have to pay for their car insurance.

Enough to buy themselves a brand new 2023 Mercedes

 

[Newby]

I just got off the phone with one of my account managers. Long story short - the renewal on a building we insure in San Francisco went from roughly $4,500 to about $17,600. We have plenty of appointments, and shopped the market aggressively.

Apparently the client just cut a check for the whole amount.

On p&C when the rates increase do you get paid based on the new rate? Or the original rate?

 

[Allen Trent]

On p&C when the rates increase do you get paid based on the new rate? Or the original rate?

Unless a carrier has implemented a recent comp change impacting all premium the agent always gets paid a commission rate on the full premium of the policy. Renewal commissions lower than new commissions. Plus, unlike Life where there is really only a backout when a life policy cancels, PC policies have accounting transactions adding & subtracting every single month as clients make changes adding or decreasing policy premiums like adding cars, adding buildings, deleting coverages, reinstating or canceling a policy. This hard market will increase PC agencies book sizes substantially & likely raise compensation substantially..............................assuming no major comp rate reductions or carriers leaving the market. Plus, agencies will need more labor to handle all the rate complaints from clients & shopping for a new market & lastly to field all the new incoming client calls upset at their current agent/agency from rate increases. Hard markets can be both the best & worst of times, but overwhelming many times too.

 

[dcollins]

Hi, would you be interested in a second opinion for auto insurance rates?

 

[Allen Trent]

Hi, would you be interested in a second opinion for auto insurance rates?

No thank you. I lost my license 40 years ago in Hazard County Georgia & can never get it back. Sure wish I would have listened to my Grandpa Jesse instead of me & my brother getting in so much trouble racing my car & running from the Sherrif

 

[dcollins]

No thank you. I lost my license 40 years ago in Hazard County Georgia & can never get it back. Sure wish I would have listened to my Grandpa Jesse instead of me & my brother getting in so much trouble racing my car & running from the Sherrif

Not a problem, you are very welcome!