Travelers reducing commissions

[Smalltownagent]

Great article. We'll miss David.

I'm still compiling dec pages to roll this book. I hope more agents do the same. I think its imperative that they will be an example of how NOT to treat your agents, instead of an example to other companies on how to increase profitability.

[oldinsman]

It may create some angst in your agency however each company needs to help an agency grow or be eliminated. We have 25 years of experience as an agency and last Winter we decided to prune Travelers Personal Lines out of our agency. This Spring I received a call from my telephone marketing rep asking why we weren't writing business with them. I explained that the MIAA gets 20% commission, that Travelers markets direct and we have plenty of regionals and national who will absorb their policies within our agency.
We don't like the inconvenience and the rewrite work but 99% of our Travelers personal lines has been successfully transferred interagency. The attrition of 1% really amounts to the 'dog bones' of poor risk and/or price shoppers. I may sound cavalier but experience teaches that preparation and carrier assessment is crucial to success. Sometimes it is better to part with a carrier than absorb the loss in revenue. We have not been able to convince any insurer that their new commissions were a mistake. We won't waste the effort.
Best of success to the other agencies dealing with this issue.

[Insurance1822]

Hello All,

I'm new to this forum, however the Travelers commission cut is a very scary thing to us. We're an SIAA agency & our total compensation via new business & renewal over-ride commissions along w/ profit sharing still makes them one of the top paying carriers in our agency. But we're refusing to write them unless it's $300/year difference or more (which is rarely the case.)

Do you guys see them going back on this? Do you think if their new business drops off enough they'll reconsider..or do you think this is final? If they get away w/ this...it's the beginning of a national trend. I struggle sometimes because with our blend of carriers we're able to be price competitive almost every-time.

[agent14]

insurance1822, unless there is a large enough drop off of new business from the agent channel, there is no way Travelers will reverse course. This time next year, during one of the quarterly investor calls, if Travelers is able to crow about new business premium being way up, agents are screwed. The good news is, the end of the movie has not been written yet: Agents have all the power to determine if Travelers is successful or not. The question is, will the average agent be able to look past short term selfish small commission by selling Travelers at the moment, and be able to have the sack to look at the long term consequence of the entire industry, by refusing to assist a carrier that has become so openly hostile toward agents, the very agents that made Travelers what it is today?

What say you, Travelers agents? If you wish to work for lower commissions from all carriers in the near future, continue to quote and sell, and therefore support with your dollars the new Travelers agenda.

[Smalltownagent]

Let them hear about it. I just finished my Travelers Voice of the Agent survey. I let them have it and I suggest all agents do the same.

Here is how the email is worded:

Dear Agency Partner,

At Travelers, listening to our agencies is not something we simply talk about it’s; how we do our business. To hear what you have to say, Travelers is conducting a 2014 Agency Impact Monitor (AIM) online survey. This survey provides you with the opportunity to share your experiences, satisfaction level and opinion of our Personal Insurance products, services, marketing and sales. Questions are tailored to the responses you provide, so we estimate that it will take you approximately 10-12 minutes to complete the survey.

[yoyowordup]

The survey link you provided was specific to your agency and is a one-time closed survey.

[lonestar]

All current Travelers agents can request the survey be emailed to them, by clicking on the "agent survey" link from the Travelers agent portal home page. Upper right hand corner.

The instructions will tell you to send an email to "marketre@travelers.com" along with your name, agent code and email address to receive a copy of the agent voice survey.

I have a feeling that Travelers already knows how the agents feel. But as long as most agents are willing to do the same amount of work for less money, what is the incentive for Travelers to change? Until most agents either cancel their appointments or refuse to write policies at below market commissions, there really isn't any deterrent for Travelers to change their behavior. IMHO.

[Smalltownagent]

My apologies, I didn't realize that was specific to my agency. It was emailed to me a couple of times, so make sure you fill it out or request it be emailed to you as lonestar has offered.

As mentioned previously, I"m in the process of starting the book roll process to another carrier that focuses exclusively on the IA channel. I hope others do the same. I'm sure other companies are taking notice of how this goes with Travelers, and if they are able to make money and have agents still selling their products...then other companies will follow suit.

[ins-atty]

One of the questions on the survey was: "What can we do to become a top three carrier in your office?"

The obvious answer: "Compensate us like a top three carrier."

[HarrisburgAgent]

SNL puts out market share figures quarterly on the largest private passenger insurers. I can't help but notice that Travelers is one of the only ones on the list consistently that is experiencing losses of written premium from the prior quarters.

Here are the figures from the latest report I have access to on 6/30/14

• 6/30/2012 975.6 million
  6/30/2013 922.6 million
  6/30/2014 905.5 million

They are one of the only carriers in the top 10 who consistently has lost market share the last several years. I would have to think that their rate increases are helping offset the loss of organic growth. The numbers are similar to Kemper and Farmers, hardly a pack you want to be in the running with if you ask me.

I would say the indepedent agents have already been alienated, and the numbers are starting to show. I personally don't see anything that is going to change the tide, at least with the independents who have a choice of working with different companies.

Quantam 2.NO!

[lonestar]

Harrisburg, good post.

I like the "Quantum 2.NO!"

By the way, I wonder how much more Travelers GWP will dive over the next 2 years, since all the Travelers agents that are losing their appointments will surely be moving most of that premium to other carriers. Has Travelers lost their mind, or are they the "Edgar Casey" of the insurance world?

[lonestar]

Latest on Travelers in Texas: The regional personal lines manager for north Texas had enough after 2 years, and went back to his old employer, the Hartford. Word on the street is he got tired and beat down, for having to terminate agencies for writing business with Travelers that Travelers did not want. Yeah Travelers, that makes sense. You set the rate for the risk. The consumer is quoted, and Travelers is chosen by the client for the coverage and rate. Yet you terminate an agency because they are selling to customers that you do not like their insurance profile? Do you think you will have better insurance customer profile by selling direct to the price only crowd?

Quantum / Quota 2.NO!

[NCAgent]

I'm new here and had a feeling I would eventually find something online about this issue. I had a meeting with my rep as of yesterday and it seems they are indeed giving the same talk to all agents to try and sell us on the idea of reducing our commissions once again. This is the 2nd time in the past 7 years that I have written for their company. I have been loyal to their company but it seems they aren't quite as loyal to their agents. It's greed at the top. Well my loyal days are over. My book of business has remained profitable and has continued to grow rapidly with their company. If they decrease my commission by even 1% I'm rolling my business over to a company who treats their agents with appreciation. Travelers has gone down hill in my opinion and this certainly is not going to help them one bit. Somehow all agents need to be notified to stand together to stop this nonsense from continuing. I'm simply over it.

[NCAgent]

Is anyone else aware of a lawsuit that was brought against Travelers by agents in the past? I recall my rep talking about one around 7 years ago when I was first appointed but I can't remember the details. The rep stated that it had happened at one point but did not mention how far in the past. I'm just curious now exactly what that was all about because I believe it was mentioned that it definitely had something to do with commissions if I remember correctly. Anyway, I searched online but couldn't find anything. If anyone else has any information on this please let me know.

[goldenarms123]

Their website is not user friendly at all. They don't have their own application forms. Accord forms can get old after awhile. Past experiences dealing with underwrites have been a joke. Their minimum $2500 wind/hail deductible on a homeowners policy is a joke. And now cutting on commissions, they are really going downhill. They used to be such a major player.