Safeco to Terminate 1/2 of CA Agents - Lara has to go

[RustyBill]

Things are crazy here in CO, hopefully it doesn't get THAT crazy...

 

[Markthebroker]

I pretty sure you can just install a ninja food mixer on top for real cheap.

Now you're just being silly. You can't just install a ninja food mixer on top. Come on man. Be realistic.

You need to hire a specialty mechanic at like $400/hr to do it.

 

[Markthebroker]

Things are crazy here in CO, hopefully it doesn't get THAT crazy...

Just wait 'till Newsom becomes president.

As California Goes, so Goes the Nation...

 

[WinoBlues]

Just wait 'till Newsom becomes president.

As California Goes, so Goes the Nation...

King Gavin
And his treasurer Aunt Nancy.

 

[Paul H]

Lara is atrocious. This is what you get when pols just jump from one statewide office to another b/c they refuse to accept the fact that the state constitution limits you to two terms in any given office.

Lara was the next Dem in line and here we are.

FUBAR, totally FUBAR.

 

[ehall2]

I'm not familiar with the job Lara does in California but in Georgia Safeco recently cancelled all agents in the southern part of Georgia. I was one of them. I don't know you can blame this on Lara.

 

[National Agency]

Safeco has begun to undertake Underwriting actions to inspect and satellite check on homes prior to renewal in order to send a timely non-renewal. We welcome this 1000% rather than eliminate agencies who have earned the trust over many years of thousands of homeowners. We're hoping that they will have a change of heart and save the agencies but ramp up the underwriting efforts to eliminate adverse risk. In the meantime, Lara must be terminated instead of the agencies, and the next bloke on the block must do the job without emphasis on political aspirations!

 

[National Agency]

So if the Carrier doesnt't get their rate increase, just term the agency with over 70% LR. Just not right! Rather than non renew the policy holder, Safeco will just non renew the Agent.

My question: with these Agency terminations: will all their policy's be non renewed as a result? I believe that is a state by state rule, but not familiar with CA. Maybe @shawnmwalker can chime in.....


December 12, 2023

Liberty Mutual's Safeco unit has moved forward with a plan to trim half of the organization's agents in California after state regulators apparently did not sign off on requested rate hikes, Insurance Insider U.S. reported Tuesday.

The agents impacted by the reorganization had five-year loss ratios that exceeded 70%, the publication wrote. Further, other agents will be placed by Safeco on "performance improvement plans, effective January 1," Insurance Insider US noted.

When asked about the changes by P&C Specialist, a spokesperson for Boston-based Liberty Mutual said via email that the firm would not provide details about reported Safeco restructuring on the West Coast.

"We don't comment on the specifics of our business plan but we are committed to California and Safeco remains open for new business in California," the spokesperson noted.

Staffing shakeups have been a key theme this year at Liberty Mutual. Like all its big peers, the No. 6 personal lines carrier has been affected by 41-year-high inflation, rising incident severity, growing catastrophic losses, mounting reinsurance costs and regulatory pushback to rate hikes in states like California.

Earlier this year, the company parted ways with 1,220 employees or almost 3% of its workforce. The layoffs were a part of the insurer's multiyear transformation plan that covers its U.S. retail markets, global risk solutions businesses, tech and other corporate groups. The corporate revisions also are transpiring as a new CEO, Tim Sweeney, implements his vision for the company following the exit of long-time chief executive David Long from the role. Long is now executive chair.

The reported Safeco agent trimming is not the first time that Liberty Mutual has seemingly taken actions to remedy the firm's bottom line in California this year.

In late July, Reuters reported that the Fortune 100 company planned to "stop offering its business owner's policy (BOP) product" starting in October and "will not renew its current book of this line of business beginning in December," Reuters wrote, citing a company spokesperson. The news service describes BOP as "an insurance product usually required by business owners that bundles all major property and liability risks into a single package."

BOP is a small part of the company's writings in California, according to Insurance Insider US.

That news was followed by August filings with the California Department of Insurance that revealed Safeco planned to drop over 950 policies in the Bay Area, impacting approximately 1% of the carrier's California homeowners' business.

Throughout the first half of the year, five major carriers — Progressive, State Farm, Allstate, Nationwide and Farmers — announced significant exposure reduction plans for homeowners business in California. Those five carriers account for 45% of the market share for the state.

And in July, Tokio Marine America said it would suspend underwriting new personal lines business — except for personal auto insurance — in the California admitted market as of July 15, with plans to exit all of the state's admitted personal lines market by June 1, 2026.

source:
[EXTERNAL LINK] - LiMu's Safeco Unit to Cut Half of Its Calif. Agents, Report Says

What a Chicken Shit response about not commenting on their Business Plans as they tell you they are committed to California. Clearly, California is the problem but Safeco shit on those hard working individuals who built up the volume that made them strong to start with. Many of those terminated agents have been appointed by Safeco for over 10 - 15 years and have spent hard earned money marketing to bring more business to the carrier. You are so right, the carrier would've been so much more respected if they took action against problem customers by re-underwriting risks as they are presently doing utilizing their professional underwriting staff. Sweeping out agents who will simply lose hard earned revenue in a time where other carriers are clearly not going to take the risk is really weak. As I respond to this very well written Post, I do want to primarily point out that California is the problem, but a strong second is Safeco. While Safeco was still happy to accept more new business two years ago when many carriers were withdrawing, they were poised to capitalize on the timing to gain more market share hoping that the State of California would grant rightfully justified rate adjustments, the State regulators both failed the carriers and consumers clearly damaging the industry. Safeco is DEAD WRONG about this action unless their ultimate TRUE plan is to exit California. Sad time for carrier agents who have put so much into building their solid book of Safeco business and followed the underwriting criteria set by the company - Shame on Them and Shame on the State of California for not stopping this situation from unfolding where we all saw it happen before our eyes!

 

[National Agency]

I'm not familiar with the job Lara does in California but in Georgia Safeco recently cancelled all agents in the southern part of Georgia. I was one of them. I don't know you can blame this on Lara.

Hello ehall2, in the case of Georgia, we can clearly agree that Safeco's management has failed you with their decisions. Carriers should be able to forecast well ahead of what agencies are able to do; Agents are hard working and motivated people tasked with going out and being the front line face of the carrier. When the carrier pulls the plug on you after many years in service, they toss a dozen eggs in your face and leave the clients hanging by simply non-renewing clients with the excuse that the agent is no longer contracted with the company. I sure hope that you have a replacement carrier and the staff to rewrite all the cancelled policies within a year. Such a shame! I'm sorry this happened to you! If we can help at all, please feel free to reach out!

 

[reynon]

Safeco terminated our agency and did not offer renewals to customers. Liberty Mutual also terminated one of our largest clients that they insured for over 40 years. In the most recent 4 years they made over $1,000,000 profit on the account. As a matter of fact they made money every year they had the account. But don't worry, we have a commissioner that is giving us DEI.