When Connecticut insurance agents were given an opportunity to rate their insurance companies’ performance once again, the results were consistent with previous rankings. Of the highest performers this year, about 55 percent were repeaters from last year and about 35 percent have been top performers for three straight years.
In the 2005 Company Performance Survey,a project of the Professional Insurance Agents of Connecticut Inc., companies were rated by agents on 16 different performance items. PIACT recognizes the top five companies for each performance item. Of the highest performers this year, about 55 percent were repeating their top-five showing for the same performance item last year; and about 35 percent have kept their top spots for three years running.
Companies that consistently have shown strong performance in a variety of areas since the survey’s launch in 2002 are Chubb Group, NLC Insurance Cos. and Progressive, which again placed among the survey’s top five companies in multiple performance categories.
NLC and Chubb Group ranked consistently strong, scoring among the top five companies on 10 or more of the survey’s 16 performance items. Also scoring well were Progressive and Middlesex Mutual, which ranked among the top performers on eight or more of the 16 criteria. Scoring high in five or more categories were the Andover Cos., and The Hartford.
Last year Chubb Group, NLC, Peerless, Progressive and The Hartford showed the greatest versatility by earning top scores in multiple categories, according to the agents who participated in the survey.
Overall top-scoring companies in 2005 for all performance items combined, earning a total score of 60 or higher, are NLC (commercial and personal), Chubb Group (commercial and personal), Progressive, St. Paul Travelers (commercial), Peerless (commercial), The Hartford (commercial) and Middlesex Mutual.
This year PIACT added five companies, AIG, Andover Companies, CNA/Continental Casualty and Quincy Mutual to its survey.
“Before we launched this year’s project, we received a number of calls from insurance companies asking to be included,” said Joseph Bishop III, CPIA, president of PIACT. “Because of their interest and the interest of insurance agents, we expanded the survey to enable more companies to receive feedback from their agents.:”
The survey asked PIACT members to rank 30 insurance companies or company business units in performance categories including products and pricing; treatment of agents; marketing support; technology; claims handling; service; and underwriting. Agents were asked to rate many companies’ commercial lines and personal lines performance separately, because companies may maintain significantly distinct commercial and personal lines operations and agents may be active with a company for one but not the other.
Other companies included in the survey were: Great American Insurance Group, Hanover, Kemper/Unitrin, Metropolitan Auto & Home, OneBeacon, Patrons Mutual, Safeco and Zurich North America.
Products and pricing
Agents were asked how strongly they agreed with the following descriptions, regarding the products and pricing of the company they were scoring:
Pricing is competitive.
Coverage compares favorably.
The Hartford and Middlesex Mutual rated among the top five carriers on both these performance items.
The companies perceived most strongly to have pricing that is competitive with other companies offering similar products are: NLC (commercial and personal), Safeco (personal), Peerless (commercial); plus The Hartford (personal), Middlesex Mutual and St. Paul Travelers (commercial), tied.
NLC, Peerless and Safeco repeat from last year; NLC and Safeco have ranked among the survey’s most competitive companies in all four years.
Companies seen as having coverage that compares favorably with other companies offering similar products include: Chubb (personal and commercial), Andover Cos., The Hartford (commercial) and Middlesex Mutual. Chubb and The Hartford repeat from last year; Chubb has scored high for its coverage in all four years.
Treatment of agents
Agents were asked how strongly they agree with the following descriptions as applying to a company:
Dedicated to independent agency system.
Attractive agency compensation.
Communicates effectively.
Middlesex Mutual and NLC (commercial and personal) scored in the top five on all three items, while Andover Cos. and Patrons Mutual rated among the top five carriers on two of these items.
The five companies rated highest in the survey for dedication to the independent agency system are: NLC (commercial), Andover Cos., NLC (personal), Patrons Mutual, and Middlesex Mutual. Patrons Mutual repeated from last year, while NLC has scored high for supporting independent agents since 2002.
Companies viewed as offering attractive agency compensation included: NLC (personal and commercial), Andover Cos. and Peerless (commercial); plus Hanover (personal) and Middlesex Mutual, tied. Peerless was cited among the top-paying carriers last year; NLC for the last four years.
The companies rated highest for their effective communication are NLC (personal and commercial); plus Chubb (commercial), Middlesex Mutual and Patrons Mutual, tied. Patrons Mutual ranked as a top communicator last year. Chubb and NLC have repeated since 2003. (The question was not asked in 2002.)
Marketing support
Agents were asked how strongly they agree with the following descriptions as applying to the company they were rating:
Advertises, has a recognizable brand.
Supports agency marketing.
Chubb (personal), MetLife Auto & Home and Progressive rated among the top five carriers on both these performance items.
Companies perceived to advertise and have a recognizable brand include: Progressive, Chubb (commercial and personal), MetLife Auto & Home and The Hartford (commercial). Chubb, Progressive and The Hartford have scored high in this category in all four years.
The companies thought to support agency marketing are: MetLife Auto & Home, Chubb (personal), NLC (commercial), Progressive and Zurich (commercial). Progressive repeats from last year; Chubb has ranked in the top five since 2003.
Technology
Agents were asked how strongly they agree with the following statements about companies’ technology:
Good technology overall.
Good support, helps with training.
Supports single-entry
The Hartford (commercial) and Progressive scored among the top five on all three technology criteria; St. Paul Travelers (commercial) and Zurich (commercial) each rated among the top five carriers on two technology performance items.
The companies perceived most strongly to have the best technology overall include: Progressive, The Hartford (commercial), Safeco (commercial), St. Paul Travelers (commercial); plus Safeco (personal) and Zurich (commercial), tied. Safeco repeats from last year. Progressive, St. Paul Travelers, The Hartford and Zurich all placed in the top five for good technology in all four years.
Companies recognized as offering good support and help with training are: The Hartford (commercial), NLC (personal), St. Paul Travelers (commercial); plus NLC (commercial), Progressive and Zurich (commercial), tied. NLC’s personal lines unit repeats from last year. The Hartford’s support and training program has been similarly recognized for the last three years.
The following companies scored highest in facilitating single-entry functionality for their agencies: The Hartford (commercial and personal); Hanover (commercial); Peerless (personal); St. Paul Travelers (personal); Zurich/Maryland (personal); and Progressive. Repeating from last year are The Hartford (commercial) and Peerless (personal), while personal lines units at The Hartford and St. Paul Travelers have scored high for single-entry since 2003.
Average scores for this performance item were notably higher in 2005 than in prior years, both for the individual top scorers and for all companies combined. Nevertheless, agents still recorded the least overall satisfaction with companies on single-entry of all performance categories, as they have in prior years.
Claims handling
Agents were asked how strongly they agree that the following statements apply to a company’s claims handling:
Pays promptly.
Adjusts claims fairly.
MetLife Auto & Home, Middlesex Mutual and NLC (commercial) rated among the top five carriers on both of these performance items.
Companies that agents say pay claims promptly include: Andover Cos., NLC (commercial), MetLife Auto & Home, Middlesex Mutual and Progressive. NLC repeats from last year and Progressive placed in the top five all four years for speedy payment.
The top companies seen as adjusting claims fairly are: Chubb (personal), NLC (commercial and personal), Chubb (commercial); plus AIG (private client), MetLife Auto & Home and Middlesex Mutual, tied. In all four years, Chubb and NLC have ranked among the top five for fairness.
Service
Agents were asked how strongly they agree with the following descriptions of companies’ service:
Good overall service.
Prompt, accurate policy issuance.
Chubb, NLC (personal and commercial) and Progressive rated among the top five carriers on both these performance items.
The top five companies perceived most strongly to have good overall service include: NLC (personal and commercial), Chubb (commercial), Progressive; plus Chubb (personal) and Patrons Mutual, tied. Service at Chubb and NLC has been top-rated for three years running.
Companies seen as having prompt, accurate policy issuance are: Progressive, Chubb (personal), NLC (personal and commercial) and Safeco (personal). Safeco repeats from last year; Progressive, Chubb and NLC got top ratings for the past three years.
Underwriting
Agents were asked how strongly they agree with the following statements about companies and their underwriting:
Stable, consistent market.
Grants flexibility when warranted.
Hanover (personal), NLC (commercial and personal) and Peerless (commercial) rated among the top five carriers on both underwriting items.
The companies perceived most strongly to offer a stable, consistent market include: NLC (commercial and personal), and Peerless (commercial); plus Chubb (personal), Hanover (personal), Peerless (personal) and Progressive, tied. This is the third year that Chubb, NLC, Peerless and Progressive have ranked in the top five.
Companies seen as granting underwriting flexibility when warranted are: Peerless (commercial), Great American, NLC (commercial and personal); plus Andover Cos., Hanover (personal) and Middlesex Mutual, tied. Peerless repeats from last year’s survey; NLC has been in the top five since 2003. Underwriting questions were not included in the 2002 survey.
„Certain companies have ranked well in this annual survey since its launched in 2002, while other companies join the top five ranking each year,‰ said Russell. „Both insurance agents and companies have continued to praise this survey and eagerly await the results each year.‰
PIACT is a trade association representing professional, independent insurance agencies and brokerages.
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