PIANY Adds 18 More Companies, Units To Survey, Agent Participation Is Up

Third annual Company Performance Survey acknowledges top-performing insurance companies

Glenmont, NY - The Professional Insurance Agents of New York State Inc. added 18 new insurance companies or company units to its third annual Company Performance Survey and nearly 500 agents participated. Two of last year's top five companies, Chubb Group's personal lines unit and Progressive again ranked among the top performers. They were joined this year by Atlantic Mutual. All three ranked among the top five companies on nine or more of the survey's 16 performance items.

Also scoring well were: Andover Cos., Erie Insurance Group, Allstate, Fireman's Fund (personal), MetLife Auto & Home, New York Central Mutual, Preferred Mutual, Security Mutual and Sterling Insurance Co. These companies all scored among the top carriers on five or more of the survey's performance items, according to their independent agents who participated in the survey.

Ranked a different way, by overall scores, the five top-scoring company units for all performance items combined are Chubb (personal), Atlantic Mutual, Progressive, Erie Insurance Group and Sterling. All scored 63 or higher out of a possible 80. The average score was 57 and the range was 41 to 66.

"Interest in this survey from both insurance agents and companies increases each year," said N. Stephen Ruchman, president of PIANY. "This year a number of companies contacted us asking if they meet the criteria to be included in the survey, which has continued to grow in agents' participation and company awareness since it was originally launched in 2003."
The PIANY Company Relations Committee, headed by David Dickson, oversaw the 2005 survey project. The survey asked agents to rate their companies on various performance items agents value in their companies.

The survey asked New York agents to rank 54 insurance companies or company business units in a number of different categories including products and pricing; treatment of agents; marketing support; technology; claims handling; service and underwriting. As with last year's survey, agents were asked to rate many companies' commercial lines and personal lines performance separately.

(Companies listed by PIANY as scoring in the "top five" for a performance item usually total more than five, due to ties where multiple companies received identical scores for that item.)

Other companies included in the survey were: ACE Group/Allied; AIG; Associated Mutual; CNA/Continental Casualty; Country-wide; Dryden Mutual; Encompass; Erie & Niagara; Farmers Group; GMAC; Great American; Greater New York Mutual; Hanover; Harleysville; The Hartford; Kemper/Unitrin; Magna Carta/PSM; Merchants Mutual; National Grange; New York Mutual Underwriters; NOVA Casualty; Ohio Casualty; OneBeacon; Peerless; Safeco; Selective; St. Paul Travelers; Tower; Utica First; Utica National and Zurich North America. Companies were chosen based on the number of PIANY members representing them and/or their market share.

"This survey was developed to address the key performance items insurance agents were concerned about," said Dickson. "Our goal is to objectively communicate those strengths and weaknesses in the working relationships between independent agents and insurance companies and to use the results of the survey to foster stronger business ties with each other."

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 companies perceived most strongly to have pricing that is competitive with other companies offering similar products are: Allstate, Country-wide, Andover Cos., National Grange (commercial), Security Mutual, Preferred Mutual and Selective. National Grange (commercial) and Security Mutual have scored tops in pricing for the last three years, while Allstate, Preferred and Selective repeat from last year.

Companies seen as having coverage that compares favorably with other companies offering similar products include: Chubb (personal and commercial), Fireman's Fund (personal), Erie Insurance Group, Atlantic Mutual, The Hartford (commercial) and Encompass. Chubb, Encompass and Fireman's Fund scored high for all three 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.

New York Central Mutual, Security Mutual and Sterling scored in the top five on all three items, while Andover Cos., Atlantic Mutual, National Grange (commercial) and Preferred Mutual rated among the top five carriers on two of these performance items.

The companies rated highest in the survey for dedication to the independent agency system are: Security Mutual, Atlantic Mutual, New York Central Mutual, Sterling, Andover Cos., National Grange (commercial), New York Mutual Underwriters and Preferred Mutual. National Grange and New York Central Mutual have scored high in all three years, while Preferred Mutual and Sterling repeat from last year.

Companies viewed as offering attractive agency compensation included: Security Mutual, Erie & Niagara, Andover Cos., Sterling and New York Central Mutual. Erie & Niagara, New York Central Mutual and Security Mutual have been tops in compensation for all three years; Sterling repeats from last year.

The companies rated highest for their effective communication are: Atlantic Mutual, New York Central Mutual and Sterling, Chubb (personal), National Grange (personal and commercial), Peerless (commercial), Preferred Mutual, Progressive and Security Mutual. National Grange, New York Central Mutual and Sterling ranked high for their agent communications in all three years. Peerless and Preferred Mutual repeat from last year.

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.

Allstate, Chubb (personal) and Progressive rated among the top five carriers on both of these performance items.

Companies perceived to advertise and have a recognizable brand include: Allstate, Progressive, AIG (commercial), Chubb (personal) and MetLife Auto & Home. Allstate, Chubb and Progressive have scored high since 2003. AIG repeats from last year.

The companies thought to support agency marketing are: Erie Insurance Group, Fireman's Fund (commercial and personal), Allstate, Atlantic Mutual, Chubb (personal), Progressive and Safeco. This performance item has proven to have little consistency in its top performers from year to year, in striking contrast to most survey items.

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.

Progressive and St. Paul Travelers (personal) rated among the top five carriers on all three of these performance items. Atlantic Mutual, MetLife Auto & Home, The Hartford and Preferred Mutual scored high on two out of three.

The top companies perceived most strongly to have the best technology overall include: Progressive, Atlantic Mutual, Safeco, Zurich (small business), MetLife Auto & Home and St. Paul Travelers (personal). Progressive, St. Paul Travelers and Zurich all have placed in the top five for good technology since 2003. MetLife Auto & Home repeats from last year.

Companies recognized as offering good support and help with training are: Atlantic Mutual, Erie Insurance Group, MetLife Auto & Home, Progressive, New York Central Mutual, The Hartford (commercial), Preferred Mutual and St. Paul Travelers (personal). The Hartford, New York Central Mutual and Progressive have ranked well since 2003. St. Paul Travelers repeats from last year.

Agents see the following companies as supporting their need for single-entry functionality: Preferred Mutual, St. Paul Travelers (personal), The Hartford (personal), Encompass, Peerless (personal) and Progressive. St. Paul Travelers has been recognized all three years in this area. Preferred, The Hartford and Progressive repeat from last year.

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.

Chubb (personal and commercial), Fireman's Fund (personal), Andover Cos., Atlantic Mutual and Erie & Niagara rated among the top carriers on both of these performance items.

Companies that agents say pay claims promptly include: ACE Group/Allied, Chubb (personal and commercial), Fireman's Fund (personal), Progressive, Andover Cos., Atlantic Mutual, Erie & Niagara and MetLife Auto & Home. Chubb, Erie & Niagara and Progressive placed in the top five all three years.

The top companies seen as adjusting claims fairly are: Erie Insurance Group, Chubb (personal and commercial), Fireman's Fund (personal and commercial), Andover Cos., Atlantic Mutual and Erie & Niagara. Chubb, Erie & Niagara and Fireman's Fund have ranked well for the last three years.

Service
Agents were asked how strongly they agree with the following descriptions of companies' service:

• Good overall service.
  
• Prompt, accurate policy issuance.

Chubb (personal), Fireman's Fund (commercial), Progressive and Atlantic Mutual rated among the top carriers on both these performance items.

The top five companies perceived most strongly to have good overall service include: Fireman's Fund (commercial), Chubb (personal), Andover Cos., Erie Insurance Group, Progressive, Atlantic Mutual, National Grange (personal), New York Central Mutual and Security Mutual. Chubb and New York Central have ranked well since the survey's first year. Progressive and National Grange repeat from last year.

Companies seen as having prompt, accurate policy issuance are: Chubb (personal), Progressive, Fireman's Fund (commercial) and MetLife Auto & Home, Allstate, Atlantic Mutual, Sterling and St. Paul Travelers (personal). Chubb, Progressive, Sterling and St. Paul Travelers have ranked among the top performers since 2003. Allstate repeats from last year.

Underwriting
Agents were asked how strongly they agree with the following statements about companies and their underwriting:

• Stable, consistent market.
  
• Grants flexibility when warranted.

Chubb (personal) and Security Mutual rated among the top five carriers on both underwriting items.

The companies perceived most strongly to offer a stable, consistent market include: Andover Cos., Chubb (personal); plus Fireman's Fund (personal), New York Central Mutual, Security Mutual, Allstate, National Grange (commercial) and Preferred Mutual. This is the third year New York Central has ranked in the top five. Chubb, National Grange and Preferred repeat from last year.

Companies seen as granting underwriting flexibility when warranted are: Atlantic Mutual, Chubb (personal) and ACE Group/Allied, Security Mutual, Selective and Sterling. Chubb, Security Mutual and Sterling have been top scorers in flexibility since 2003.

"While the addition of companies to the survey has influenced the results in terms of which companies ranked within the top five for each category, many companies that have ranked well in the past have continued to do so," said Dickson. "The participation in this survey continues to be encouraging and has made this survey a staple at PIANY. The bottom line is that though the survey is about agents and insurance carriers, the real winners are our clients who see the survey results in the continued improvements in the insurance services they receive."

SOURCE: PIANY