Losing My Safeco Appointment in CA

[twoplustwoisnot4]

Hi everyone,

Was hoping for some help or advice! —If it's not apparently, it would seem that California is experiencing some sort of hard market in the admitted arena (or all around.) As of recently, I've decided to attempt to sell my book of business, and in doing so... Reached out to my marketing rep @ Safeco for help obtaining the prior year's loss runs.

The best part about reaching out to my marketing rep is that he explained that our loss runs were relatively good! I was very happy about this.

I got a call from the same marketing rep the following week with news that our appointment was going to be terminated due to bad loss runs. — They're not terrible (2020 - 35%) (2021 - 65%) (2022 - 87%), then come 2023, we were suspended from writing any new business... Sure enough, got a REAL shock loss - House Fire, and along with no new business, this $150K loss makes our loss runs look terrible, like 600% or so.

Anyway, thought this was a pretty sweet deal. —But, more importantly, our entire book with Safeco is going to be non-renewed starting in June. The worst part about this is, there aren't any carriers writing new business. The saddest part is all of these clients are going to experience this without it being their fault. —I sure am upset for call the marketing rep that day for the loss runs... Had I not done that, I probably wouldn't have been in the situation!

Does anyone have any experience with something like this before? Any suggestions on how I should proceed in the smartest way possible? —I will take any words of wisdom or advice on this one, because I'm quite stumped.

 

[Scott Ashton]

I have the same problem with Safeco in Florida. I called them on behalf of a customer. I was transferred 12 times spanning almost 1 1/2 hrs. with no resolution! Only after calling a Greg Matthews after his 3 day weekend it was fixed in 10 minutes due to a typo. Greg asked, "so who transferred you"? My reply, "I asked her name. She wouldn't give it. All I know it was a black woman's voice". Eight days later I was fired for "communications error"? I called for 8 more days to try & understand why after 26 yrs. of dealing with customers 7 days a week, I was fired. A Shawn Nelson called back on spkr. phone & said, "we fired u over your racism"!? Their bldg. is 2 blks. from mine and it was the 1 and only call ever made to them! I've never even met Debra Pooley, Shawn Nelson, or Greg Matthews who made poor customer service into racism! The real deal is: they don't want small agencies here. Their lawyer threatened us, "saying Safeco can fire for no reason, it's Florida". They want cubicle call centers. A.I. is what they want, but to pin it on something else is totally irresponsible and a disservice to all. Google their BBB ratings. Customers say the same thing. I've asked Safeco to pull the phone tapes for a year. Even check voice inflection. These "yes" mgrs. need to be held accountable.

 

[marindependent]

apparently, it would seem that California is experiencing some sort of hard market

Really?

our entire book with Safeco is going to be non-renewed starting in June

Well that sucks.

The worst part about this is, there aren't any carriers writing new business.

You got that right, Send em to State Farm - they will write anything.

My two cents is that some of the insurers [I am not saying Safeco is doing this, but other insurers] are coming up with any reason, any reason at all to dump California clients in whatever legal manner they can come up with.

Lastly you are not the only agent out there losing their Safeco creds....

 

[Scott Ashton]

same in Florida...just came out of meeting today, can't pay in full, we don't want the business. the premiums are so crazy. Florida never did pay people well so it's life or death for customers here. Had 5 cancellations in 2 days. They're letting the banks repo them...they give up. E bikes, moving out of state, etc.

 

[Scott Ashton]

what ticks me off is the b.s. with 2 of the largest PIP attys. in the country convincing clients they are hurt and the loss ratios climb which is a good reason for the company to tell you it's over. I got my reports read to me like I was in the 3rd grade...a least I wasn't on the agency list chopping block like some of my crosstown colleagues today.

 

[Gulliver]

P and C companies are under severe pressure right now. Safeco is one that will admit to their agents that they do not care if you write business elsewhere. We are in strange times. Reinsurance is a big piece of the puzzle. Most carriers have a much weaker reinsurance program in place in 2023 vs last year. This has put unprecedented uncertainty on them. I am aware of multiple carriers that are paying 40-50% more for their reinsurance package and also getting significantly less coverage for that premium. The reinsurance syndicate investment groups didn't show up to the table because they could get 5% yields on T-Bills. You can't blame them with the results we have seen in the market the past few years. Hardest P and C market in decades. Maybe a true "career" hard market.

 

[Matthew Labb]

Such a challenging situation in states like CA, FL, LA.

I feel for the agency owners there, and of course, insureds.

Sorry I don't have any better advice... hang in there and maybe market out of state, and also fire up a commercial lines department?

 

[Markthebroker]

Hi everyone,

Was hoping for some help or advice! —If it's not apparently, it would seem that California is experiencing some sort of hard market in the admitted arena (or all around.)

Huh, you don't say.

I got a call from the same marketing rep the following week with news that our appointment was going to be terminated due to bad loss runs. — They're not terrible (2020 - 35%) (2021 - 65%) (2022 - 87%)

That averages out to a loss ratio of over 50%. That is bad. Who told you it's not bad?

 

[Markthebroker]

Such a challenging situation in states like CA, FL, LA.

I feel for the agency owners there, and of course, insureds.

Sorry I don't have any better advice... hang in there and maybe market out of state, and also fire up a commercial lines department?

Yeah, commercial is still pretty safe if you've got lots of appointments, but if you're not already in the commercial space now, it may not be helpful.