You guys will love this...especially farmers agents. Its sad in a way that farmers agents are not allowed direct access to Zurich BOP program. And with that being said, Zurich who owned farmers has now decided to transfer their business platform directly to farmers commercial. All current Zurich appointed agents will be come directly appointed with Farmers for Commercial only.
And maybe personal lines at a later date. Within two years, renewals will say farmers ins. Just what i wanted to have, access to the most inapt company i have ever known. Great know i got to start moving business most of our clients have and extreme dislike for framers and its branding
Its better to ask forgiveness then permission
(just do it)
That is the bad news. The good news is that farmers can be competitive in certain classes like restaurants and habitational. I would not be happy about this if I were a farmers agent competing against independents.
I hadn't heard it explained that way. yes the Zurich "small biz" will be taken over by Farmers however I haven't heard anyone but yourself say that the independents would be appointed with Farmers...seems like that would have been mentioned else where. I would think that perhaps Zurich will have a different approach for independents.
Farmers is going to go strong in commercial and as said above, they have some very competitive commercial programs. If you go head to head with a Farmers agent who knows his/her way around commercial and the Farmers policies, it's very difficult to beat their pricing and coverage enhancements.
As a Hartford underwriter (and former Farmers agent) I'm thrilled to hear this news. It was shortly followed Zurich announcing that they are cutting several hundred commercial lines support jobs. More premium coming our way!
[quote="Sundance"]I hadn't heard it explained that way. yes the Zurich "small biz" will be taken over by Farmers however I haven't heard anyone but yourself say that the independents would be appointed with Farmers...seems like that would have been mentioned else where. I would think that perhaps Zurich will have a different approach for independents.
Farmers is going to go strong in commercial and as said above, they have some very competitive commercial programs. If you go head to head with a Farmers agent who knows his/her way around commercial and the Farmers policies, it's very difficult to beat their pricing and coverage enhancements.
JMHO[/quote]
My point was that if Zurich and Farmers are on the same page in terms of commercial lines underwriting, there goes any advantage that Farmers Agents had. They do have some competitive niches, but if Zurich can do the same thing, why wouldn't an insured opt to work with an independent agent. I am sure Zurich won't quote on Farmers business and visa versa like all of the Liberty Mutual agencies markets, that somewhat protects the Farmers agent but it sure doesn't help them chase new business.
For me it is good news because this may be the straw that breaks the camels back for some of the better Farmers agents in my area and I am looking for some proven producers.
Word straight from Farmers Home Office is that no independent agents will have access to any FIG products at all at any time. The Farmers agents will obtain access to Zurich products but at this time not sure what extent that will be and when it will happen (at least that is the plan now), they are still feeling their way through all of this. Thus far, Farmers can quote against Zurich and Zurich against Farmers, but we will see how long that will work. Being a Zurich appointed agent is no great deal right now and with the Farmers thing, even worst in our opinion.
Is this another of Farmers/Zurich's efforts to heard their agency forces into one homogonized group of products for SmallBiz owners only? Seems Farmers agents are continually pushed more towards BOP-type business only, and everyone knows that's all ZIS wants to underwrite. Now it looks like they're trying to offer one identical suite of products for SmallBiz producers under either name. Makes you wonder if they're going to keep underwriting capabilities around longer than 24 months for anything outside a BOP program...
If you're Farmers (but not President's Council or Gold Card), watch out for falling max premium size cap.
Prediction: Seriously grow your business or learn to be happy selling SmallBiz, life & personal lines only.
Sundance and Insurkid ..OK Gee i knew this would start a hot topic with farmers' agents. Farmers is not going to tell you the truth ever...geee its farmers come on. I have the dam letter head straight from farmers, addressed directly to all appointed Zurich agents, 3 dam pages. Sundance and Insurkid, you guys are wrong.... the letter states that all Zurich appointed agents will have direct access to all farmers commercial product only. And current brand with Zurich letter head will become farmers branding something like Zurich/farmers not sure as many IA are complaining of farmers name association. This is to happen within two years. I agree Zurich is not a player in Calif, their P & C product is weak at best. They push mono line WC, and builders risk, BAP which is over priced. Yes farmers is competitive with habitational and restaurants.
Its better to ask forgiveness then permission
(just do it)
The letter does not state we will receive a direct appointment, it merely says that all AI and farmers exclusive agents will have access to all truck insurance exchanges. I double check this with Zurich and they forwarded the letter again. If you guys want to read it let me know forward your fax numbers.
Its better to ask forgiveness then permission
(just do it)
Based on what I read on Farmers and Zurich website, initially it will be business as usual, but eventually Zurich appointed agents will have limited access to Farmers owned products.
They mentioned they will form a new brand (yet to be named) for the independents.
I think they will consolidate all non-Farmers brand (Foremost, Bristol West, Zurich SBS) in this new brand for independents and continue the Farmers brand for captives.
Harrison
Newport Bay Insurance Svs.
Los Angeles, CA
Yes... that sound about right, when speaking with Zurich. They said the same, we would have access to all commercial class codes that are offered though Truck insurance exchanges. The new Branding will be underwritten by farmers underwriters. This is huge and will impact the farmers agent who does not understand the market place and coverage forms. Zurich said that farmers and Zurich class code will be come seamless. Only AI and exclusive agents will have access to the new branding (OUCH). But farmers agents i think will have access to Zurich class codes as will just not the name or the new branding.
Its better to ask forgiveness then permission
(just do it)
[quote="sanddog1"]Yes... that sound about right, when speaking with Zurich. They said the same, we would have access to all commercial class codes that are offered though Truck insurance exchanges. The new Branding will be underwritten by farmers underwriters. This is huge and will impact the farmers agent who does not understand the market place and coverage forms. Zurich said that farmers and Zurich class code will be come seamless. Only AI and exclusive agents will have access to the new branding (OUCH). But farmers agents i think will have access to Zurich class codes as will just not the name or the new branding. [/quote]
It will be a tough situation for Farmers agents if they allow IA's to quote on Farmers business with Zurich (assuming the UW and rates are equal). You would think they would protect their own agents.
The bright side is that 80% of farmers agents don't write commercial. So i don't hthink its that big of and impact to their agents.
One reason why agents come and go with farmers, is quick training and the boot out the door your on your own. But you had better sell life insurance. So..... no they could care less about their agents. I know a couple of very large agency they are concerned with them, hell they get all the policies written from the agents who don't make it.
Its better to ask forgiveness then permission
(just do it)
I double check this with Zurich and they forwarded the letter again. 