sanddog1 wrote: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.
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.
Not necessarily! They do teach us to eat our young, you know.
All kidding aside, I for one am not terribly impressed to learn about this development. And no, I don't doubt the validity of it, I've learned to be smarter than that. I recall seeing the memo about the Zurich SMB unit being handed over to FIG, they just left out the other parts.
Compared to many of you, I'm very new to the industry, although I do have 17 years of related experience. I learn everyday and my experiences in the last 12-months with FIG have been no different. It's not all bad you understand, I just wish I could have pulled the curtain aside a bit to see what's behind it!
As for my own direction, I'm looking to realign my professional goals slightly. I love this business (dealing with and helping people) but I need to re-think how best to do it.
I keep reading that Zurich owns Farmers. I believe Farmers is a mutual company, owned by thier policy holders. It is my understanding that Zurich performs as a third party administrator taking care of thier buisiness.
Unfortunately, Farmers claim service does not have a good reputation in Houston. Many clients still remember their stance on mold, deny, deny, deny and may the client would die befor Farmers would pay.
sanddog1 wrote: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.
The truth of the matter is that 80% of Farmers agents can't even SPELL Commercial Insurance let alone the word Insurance. I am a former FIG agent.
Sundance wrote: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
Regarding this It will be the management company "Farmers Insurance Group" and not one of the exchanges managing the Small Business divistion. I sounds like they will have people that understand insurance MANAGEMENT. As long as they keep their "Sales Department" out of it it should work out OK. Their Sales Department MANGLERS were all ladder Climbers that didn't/don't care WHO they use for steps and throw agents against the wall like dirt to see how many stuck.
Farmers is a good insurance company as long as you don't have to deal with the "Sales Department"
Direct comments from one of FIG's largest commrecial producers when I talked with him yesterday.
It will all be the same for 18 to 24 months. Farmers agents will have branded products. Zurich appointments will not have farmers except in the expansion states in the east like they have now!! After each expansion states has Farmers appointed agents and a State Executive, the Zurich appointments for Farmers products will disappear. The Farmers agents will have access to all Zurich with the new Farmers Brokerage unit in Michigan now starting up. (E&S Brokerage, out of the Foremost Office in Grand Rapids MI)
No Independent agents will have Farmers Branded products.
Yes, the Elite Agents may have better flexible rating by being profitable. (Yes the were called Gold card until 3 years ago)
Sounds like the same old FIG story, they can not make up their mind!! My guess is the story will change many times before they can figure out. I am sure glad they did not take the builders risk unit over to Farmers, as that will be all that we will continue to write with Zurich.
Insrkid: said, No Independent agents will have Farmers Branded products. Your friend the large farmer's agent sound like he's not from California. Back east i's another story....
All direct appointed Zurich agents and all exclusive farmers agents will have complete access to all commercial lines class codes and place business with farmers using their underwriters. NO we will not have the farmers branding, nor do any AI's or exclusive agent want it. The Exclusives would love another branding believe me...please. Farmers has and extremely poor reputation in within our arena
Its better to ask forgiveness then permission
(just do it)
havogel wrote:I keep reading that Zurich owns Farmers. I believe Farmers is a mutual company, owned by thier policy holders. It is my understanding that Zurich performs as a third party administrator taking care of thier buisiness.
Unfortunately, Farmers claim service does not have a good reputation in Houston. Many clients still remember their stance on mold, deny, deny, deny and may the client would die befor Farmers would pay.
I think you've got the "Farms" confused.. State Farm is mutual. Farmers is owned by Zurich. Agreed on the texas comment. California hasnt been too happy with them lately either.
I was a captive with farmers almost 2 years ago. New agents have to sell Life, Auto, Home and Investment products. Believe me, they dont have a whole lot of time to get in to commercial. Its the only line they can sell, but arent required to without losing their contract.
havogel wrote:I keep reading that Zurich owns Farmers. I believe Farmers is a mutual company, owned by thier policy holders. It is my understanding that Zurich performs as a third party administrator taking care of thier buisiness.
Unfortunately, Farmers claim service does not have a good reputation in Houston. Many clients still remember their stance on mold, deny, deny, deny and may the client would die befor Farmers would pay.
I think you've got the "Farms" confused.. State Farm is mutual. Farmers is owned by Zurich. Agreed on the texas comment. California hasnt been too happy with them lately either.
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I think that you both have your Farms confused a bit. Farmers Insurance Group, is a stock company that manages all of the Farmers exchanges which are a mix of stock and mutual companies. i.e. Truck Insurance Exchange is not a mutual company but Farmers Insurance Company of Oregon is. Mid-Century is not a Mutual but is a stock company.
Your friend the large farmer's agent sound like he's not from California. 
Back east i's another story....