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oicu812nbama
Guest
What is the average persistency of P and C lines?
commercial
auto
home
home/auto
home/auto/commercial
commercial
auto
home
home/auto
home/auto/commercial
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You mean annual retention? I believe the industry average for independent agents is in the low 80's and best practices agencies are in the 93-94% range.
I'd suggest reading some annual reports for carriers. I believe they talk about this, though it may be a bit obscure.
Or, are you asking for agents? For instance, someones auto premium goes up and an agent cancels it with carrier A and places it with Carrier B. Agent retention is 100%, Carrier retention is 50%
I can assure you, agent retention is all over the map, though usually anything over 90%, regardless of the line of business, it usually seen as pretty decent. In the low 80's, it's probably time to find a new job or time to take a look at who/what you are writing. Yes, non-standard auto can get there pretty quick!!!
Dan
Or, are you asking for agents? For instance, someones auto premium goes up and an agent cancels it with carrier A and places it with Carrier B. Agent retention is 100%, Carrier retention is 50%
I can assure you, agent retention is all over the map, though usually anything over 90%, regardless of the line of business, it usually seen as pretty decent. In the low 80's, it's probably time to find a new job or time to take a look at who/what you are writing. Yes, non-standard auto can get there pretty quick!!!
Dan
- 2,024
A local P&C guy I talk to told me his numbers show that the average retention time for a customer is around 9 years on those lines. Said they could average 300% of the total first year commission on marketing and still make a good profit because of retention.
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- #5
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oicu812nbama
Guest
thanks. i meant from carriers. i was trying to determine by persistency who had the least price increases. i looked at their sites, but couldn't interpret the financials. i got an a in accounting cause my professor liked me. they didn't come out and say what their persistency was (unless i misread it).
sum of it all, i'm trying to figure out the best carriers for me to use in bama/tennessee. i haven't started using a rater so i don't know where to start. (I was captive so I always went by what the customer said they were paying). i don't like to jump in to something without doing research first.
sum of it all, i'm trying to figure out the best carriers for me to use in bama/tennessee. i haven't started using a rater so i don't know where to start. (I was captive so I always went by what the customer said they were paying). i don't like to jump in to something without doing research first.
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Call the carriers is what I was told when I asked the same question about med supp carriers. Past performance is no promise of future price stability, however, I'm like you I'd like to have those numbers to present to people to push more moderately priced carriers with more stable prices over the block off and jack the rates up business that other companies do.
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- #8
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oicu812nbama
Guest
lol. i'm guilty of over analysis paralysis sometimes
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- #9
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Guest
Guest
took you a year and a half to come back to your own thread?
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- #10
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oicu812nbama
Guest
why do you bother? if they come out with a new archie bunker, i'm going to recommend that you get the part. youre a natural
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