The past few months have provided a mix of challenges and opportunities for Texas independent agents. Carrier increases have greatly improved premium results but are straining consumer pocket books. Agents are putting in extra effort on retention to explain market conditions and keep consumers from making agency changes.
Rates climbed again last month from competitors. A summary is below.
Infinity +8.4%
Falcon +19.6%
First Acceptance +15.6%
Travelers +13.7%
Gainsco +13%
Germania +17.2%
American National +6%
Encompass +27.1%
Farmers Lloyds +8.5%
Horace Mann +15%
Cincinnati +10%
Aspen +7%
AmWins Excel +7%
Esurance – transferring policies to NatGen (both under Allstate parent)
OnStar – new entrant, mirroring Allstate with heavy telematics layer added
Hidden amounts from Apollo, Patriot, Superior, Excellent, Newstar, Commonwealth, and Loop
Excellent ceased new business in their Ignition program
Used vehicle prices decreased 2.3% in October and the end of the UAW strike is positive news for valuations.
Alinsco continues to prepare agents for market shifts and to assist in improving acquisition and policy retention. Several years ago, we introduced our paperless option for clients and the Alinsco App. This option has proved to greatly improve retention. Next week we will move to this electronic platform for all new business and no longer offer a by postal mail option at the point of sale. Insureds will receive all policy notices via the Alinsco App, Mobile Phone, or Email at their election. The insured may select the form of notice when purchasing their Alinsco policy. Insureds who wish to choose a mail option post-bind may follow the instructions they receive in their electronic notice 24 hours after the start of the policy. It is important to ensure you have confirmed their mobile number and email for policy notices. Any agency numbers or email used on policies will be considered a fraudulent action which may affect an agency’s appointment and access to our system. We will be reviewing submissions in our underwriting process. Any policy with a fraudulent email or number will be set for cancellation. An email is required. Final cancellations will continue to be sent via postal mail. This has been part of our electronic process from the start. After binding, an insured who wishes to be removed must call the number provided in their electronic notice. This change cannot be made the same day a policy is bound. Our customer service team does not have the option to remove a client. This is managed by a separate team. The simplicity of electronic notices has improved policy retention. The ubiquitous use of electronic forms via email and cell phones means very few consumers would not qualify and an option remains for those who wish to make a change. Thanks for continuing to grow with Alinsco and thanks for an excellent year. In Service, Don Owens