Top-Rated Insurance Companies Tend To Hold Edge In PIANY's Fourth Annual Company Performance Survey
Glenmont, NY - The Professional Insurance Agents of New York State Inc. now announce the results of its fourth annual Company Performance Survey. Five of last year's top companies, Chubb Group (personal), MetLife Auto & Home, Progressive/Drive, Atlantic Mutual and Sterling again ranked among the top performers for garnering high marks from agents in a variety of categories. They were joined this year by Central Insurance Co. (Ohio), Chubb Group (commercial), National Grange (commercial) and Selective. All these companies ranked among the top five companies on five or more of the survey's 16 performance items.
Overall top-scoring companies for all performance items combined, with a total score of more than 60, are: Selective, St. Paul Travelers (personal), MetLife Auto & Home, Chubb Group (personal), National Grange (commercial), Sterling, National Grange (personal), Progressive/Drive, Preferred Mutual, Atlantic Mutual, Chubb Group (commercial), New York Central Mutual, The Hartford (commercial), Central Insurance Co. (Ohio) and Erie Insurance Group. The highest possible overall score was 80.
"With PIANY's 2006 Company Performance Survey, the survey project completes four successful years. Throughout that time, results proved remarkably consistent," said J. Carlos "Shawn" Viaña, president of PIANY. "Top-rated companies tend to hold their edge."
The PIANY Industry Liaison Committee, headed by Richard Savino, CIC, CPIA, oversaw the 2006 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 56 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 some companies' commercial lines and personal lines performance separately.
Other companies included in the survey were: AIG; Allstate; Andover Cos.; Associated Mutual; CNA/Continental Casualty; Country-wide; Dryden Mutual; Encompass; Erie & Niagara; Farmers Group; Fireman's Fund; GMAC/Integon; Great American; Greater New York Mutual; The Hanover Insurance Group; Harleysville/Worcester; Kemper/Unitrin; Magna Carta/PSM; Merchants Mutual; New York Mutual Underwriters; NOVA Casualty; Ohio Casualty; OneBeacon; Peerless; Philadelphia Insurance Cos.; Safeco; Security Mutual; Seneca Insurance Co.; 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.
"The relationships between insurance agents and their companies is vital to the success of the independent agency system," said Savino. "The Company Performance Survey is a great opportunity for agents to voice their praise or express any concerns about their insurance companies. Our goal is to provide agents' feedback to companies, helping them strengthen their operations and agency relationships."
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: National Grange (commercial), County-wide, Andover Cos., Greater New York Mutual and National Grange (personal). National Grange (commercial) has scored in the top five in pricing for the last four years, while Andover Cos. repeats from last year.
Companies seen as having coverage that compares favorably with other companies offering similar products include: Chubb Group (commercial and personal), Erie Insurance Group, The Hartford (commercial), Encompass and Fireman's Fund (personal). Chubb Group and Encompass scored high for coverage in all four years. Erie Insurance Group and The Hartford repeat from last year.
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.
Central Insurance Co. and New York Central Mutual scored in the top five on all three items, while Atlantic Mutual, Merchants Mutual (commercial), Preferred Mutual and Sterling 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: New York Central Mutual and Atlantic Mutual; plus Central Insurance Co., Merchants Mutual (commercial), New York Mutual Underwriters and Sterling, tied. New York Central Mutual scored high all four years, Sterling repeats for the past three years, and Atlantic Mutual and New York Mutual Underwriters repeat from last year.
Companies viewed as offering attractive agency compensation include: New York Central Mutual, Andover Cos., Central Insurance Co. and Dryden Mutual; plus Associated Mutual, Merchants Mutual (commercial) and Preferred Mutual, tied. New York Central Mutual has been tops in compensation for all four years; Andover Cos. repeats from last year.
The companies rated highest for their effective communication are: Preferred Mutual; plus Atlantic Mutual, Central Insurance Co., National Grange (commercial), New York Central Mutual and Sterling, tied. New York Central Mutual and Sterling ranked high for their agent communications in all four years, Preferred Mutual repeats since 2004, and Atlantic Mutual repeats 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.
MetLife Auto & Home rated among the top five carriers on both performance items.
Companies perceived to advertise and have a recognizable brand include: Allstate, Progressive/Drive, MetLife Auto & Home, Chubb Group (personal) and AIG (commercial). Allstate, Chubb Group and Progressive/Drive have scored high since 2003, AIG since 2004, and MetLife Auto & Home repeats from last year.
The companies thought to support agency marketing are: Erie Insurance Group, Central Insurance Co., Atlantic Mutual and Fireman's Fund (commercial); plus MetLife Auto & Home and Safeco, tied. Erie Insurance Group, Atlantic Mutual, Fireman's Fund and Safeco repeat from last year.
Technology
Agents were asked how strongly they agree with the following statements about companies' technology:
- Good technology overall.
- Good support, helps with training.
- Enables real-time transactions.
MetLife Auto & Home, Progressive/Drive, Selective and St. Paul Travelers (personal) rated among the top five carriers on all three of these performance items. Central Insurance Co. scored high on two out of three.
The top companies perceived most strongly to have the best technology overall include: Progressive/Drive and Selective; plus Central Insurance Co., MetLife Auto & Home, St. Paul Travelers (personal) and Zurich (small business), tied. Progressive/Drive, St. Paul Travelers and Zurich all have placed in the top five for good technology since 2003. MetLife Auto & Home repeats since 2004.
Companies recognized as offering good support and help with training are: Selective, MetLife Auto & Home, Progressive/Drive, Central Insurance Co.; plus The Hanover Insurance Group (personal), St. Paul Travelers (personal), The Hartford (commercial), tied. Progressive/Drive, St. Paul Travelers and The Hartford have ranked well since 2003.
Last year, item 10 asked agents about whether companies "support SEMCI." This year, the wording was changed to "enables real-time transactions." The change was made to recognize the priority placed by AUGIE (the ACORD-User Groups Information Exchange) on real-time interface initiatives. Single entry, from a cost and accuracy standpoint, remains as important as ever for agency owners, but the model envisioned by the "SEMCI" acronym may have become too limiting in judging carriers' performance.
The following companies scored highest in enabling real-time transactions for their agencies: Progressive/Drive, Selective, MetLife Auto & Home and St. Paul Travelers (personal and commercial).
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 Group (commercial and personal) and Erie Insurance Group rated among the top carriers on both of these performance items.
Companies that agents say pay claims promptly include: Chubb Group (commercial and personal), Progressive/Drive and MetLife Auto & Home; plus Erie Insurance Group, Merchants Mutual (commercial), National Grange (personal) and St. Paul Travelers (personal), tied. Chubb Group and Progressive/Drive placed in the top five all four years. MetLife Auto & Home repeats from last year.
The top companies seen as adjusting claims fairly are: Chubb Group (commercial and personal), Erie Insurance Group, Atlantic Mutual and Erie & Niagara. Chubb Group and Erie & Niagara have ranked well for the last four years. Atlantic Mutual and Erie Insurance Group repeat from last year.
Service
Agents were asked how strongly they agree with the following descriptions of companies' service:
- Good overall service.
- Speedy, responsive service.
Chubb Group (personal) and Progressive/Drive rated among the top carriers on both these performance items.
The top five companies perceived most strongly to have good overall service include: Chubb Group (personal) and Progressive/Drive; plus Merchants Mutual (commercial), MetLife Auto & Home, National Grange (commercial and personal), New York Central Mutual, Preferred Mutual and Sterling, tied. Chubb Group and New York Central Mutual have ranked well since the survey's first year; Progressive/Drive and National Grange since 2004.
In 2005, item 14 was worded as "prompt, accurate policy issuance," which has become largely a function of a company's technology. The item now asks about "speedy, responsive service." This change was made in recognition of changing expectations spurred by an increasingly 24/7 business environment.
Companies seen as having speedy, responsive service are: Chubb Group (personal), Progressive/Drive, Selective, Erie Insurance Group and Sterling.
Underwriting
Agents were asked how strongly they agree with the following statements about companies and their underwriting:
- Stable, consistent market.
- Grants flexibility when warranted.
National Grange (commercial) and Sterling rated among the top five carriers on both underwriting items.
The companies perceived most strongly to offer a stable, consistent market include: Sterling, Chubb Group (commercial and personal), National Grange (commercial) and Selective. Chubb Group and National Grange have ranked well since 2004.
Companies seen as granting underwriting flexibility when warranted are: Central Insurance Co. and Great American; plus Atlantic Mutual, National Grange (commercial), Preferred Mutual and Sterling, tied. Sterling has been a top scorer for its flexibility since 2003, while Atlantic Mutual repeats from last year.
SOURCE: PIANY