State Auto Complaints - where Are They?

[TwoLabs]

I'm surprised I haven't read more about State Auto and the changes they are making.

The biggest of course is the commission cuts. More drastic than any other carrier I've seen. Auto is going to 10% renewal (aka....Progressive, with worse technology). Homes are at best 12%, only if you have the supporting auto. Otherwise, 10%.

They also are requiring all new policies to be 100% paperless and automatic draft. We're still a small town, rural agency and that won't fly with a lot of our clients.

But besides that, they've just gone to the trash pile for our agency. Why in the world would I write anything more with them? At least Travelers let you keep 15% on the home and only went to 12% on the auto. Time to pick that book apart.

Thanks Mike LaRocco. We know how much you value your agent force.

 

[DJAJ]

I think the commission complaints for SA were part of another thread. Can't remember which one but there was a few.

For those who were part of the first roll out of the new design and products, how is going?

 

[AZDave]

I have a huge State Auto headache. I have had it for well over a year. 2015 rate increase, now this year double digit, some accounts over 20%. These are their 'credit level C' type customers - cream of the crop. Metropolitan AZ has high rates to begin with, and this type of increase is getting attention.

I figured the new 'platform' rates would be noticeably better, and might roll some over, but I have yet to have any rates better than the expiring. I have yet to write anyone with the new system.

I am now moving my State Auto customers to other carriers. What a pain. I'm waiting for the rep to call and bitch about production.

 

[shawnmwalker]

Here at PGI we are Huge State Auto Fans.

Big things on the horizon.

 

[TwoLabs]

Shawn-

With all due respect, how can any independent insurance agent be a "big fan" of State Auto now? What big things are coming? Even better rates, courtesy of a now 8% renewal commission? That just boggles my mind.

Maybe I could get away with this *scratches head*:

Me to CSR: "Hey Pam! I really value you and your work that you do for us. Tell you what, I have a great opportunity for you to make more money. I'm going to cut your pay by 33%, but, now you no longer are just restricted to 40 hours a week! You were making $15 per hour but only up to 40 hours. Now, you can stay up here all the way until 10 at night! Even though you are just now making $10 per hour, you have an extra 10 hours a week to earn money. So previously, you could only max out at $600 per week, now you can max out at $650 per week! I know, I know. You're welcome."

CSR: "Uhhhhhhh...so you're sayin I have to"

ME: "Thanks!! Good talk!"

 

[gambrinus]

Here at PGI we are Huge State Auto Fans.

Big things on the horizon.

Don't leave us hanging....

 

[insurance1822]

I like Shawn. But...he's a suit. He's cognizant of what he posts so if there's little info...there's a reason. There's an overall theme of having a higher level understanding, but staying ambiguous to not give any real measurable information.

That's why I suspect he's good at his job & why he may one day be a good politician.

Love ya Shawn!

 

[shawnmwalker]

Ah Shucks Ins1845,

I love you too.

I am a suit. (I don't take offence to that- I have been on the carrier side, and engage with the carrier side every day for 13 years now to accomplish mutual objectives) I have an agency too....by the way....and started as a Producer in a 10m agency in college while my buddies were delivering pizzas.


However... Mike LA Rocco (Former Safeco President) is leading the State Auto Charge. He turned the Safeco ship, he has the state auto board of directors investing BIG time in the turn of the State Auto ship. Its going to turn!

As far as the comp conversation goes. I don't participate in that conversation here. But INS1877 can attest that carriers don't treat all their distribution points equally.

 

[VolAgent]

Shawn,

I have to ask, you always seem to use different numbers when referring to insurance1822. Is it an attempt at humor, carelessness, what?

Also, cutting comp, whether based on distribution channel or otherwise, does not exactly come across as agent friendly.

 

[shawnmwalker]

It is my little way of showing endearment to him. (By not getting his name correct)

Cutting comp is not cool. Who wants to list the carriers that dropped comp in 2014, 15 and 16. (State Auto is one of 7) In 2016 there were 5 alone....

Given that info, that one indicator does not suggest State Auto is.....