CSI Report 2010

Driving members to distinction.

2010 COMPANY SATISFACTION INDEX SURVEY

RESULTS An exclusive member benefit for benchmarking carrier relationships

C O M PA N Y S AT I S FA C T I O N I N D E X

2010 CSI RESULTS

2010

Summary The Insurance Agents & Brokers (IA&B) conducted its biennial survey of agency members in Delaware, Maryland and Pennsylvania to determine their satisfaction level with the carriers with which their agencies do business. IA&B has been collecting and sharing members’ opinions with both carriers and agents since 2004.

This report is divided into four sections:

For more information: Visit IA&B’s Company Satisfaction Index interactive online tool at iabgroup.com/csi. The tool is designed to provide an overview of both personal and commercial lines results, a comparison among carriers and an in-depth look at each carrier’s individual results by question.

1. Outline of the index’s participation, structure and purpose The survey was open to all employees of any IA&B member agency from June 1 to mid-August. Although participation was down slightly since 2008, the number of carriers rated continued to increase. Only carriers receiving 10 or more completed surveys are included in this report.

Results allow carriers to assess performance in an independent way and compare that performance with other carriers.

2. Key findings by carrier group The report differentiates the carriers based upon direct premium written (DPW) and the number of states in their footprint. Carriers were divided into one of four groupings: • Regional carriers operating in 1-10 states with less than $100 million in DPW • Regional carriers operating in 1-10 states with more than $100 million in DPW • Super regional carriers operating in 11 to 34 states • National carriers operating in 35 or more states The results show that members’ satisfaction with all carrier groups – except for regional II carriers – increased slightly since 2008, but it was the super regional carriers for both personal and commercial lines receiving the most favorable marks from survey participants.

INDEPENDENT AGENTS’

SATISFACTION WITH

SUPER

REGIONAL

CARRIERS IMPROVES

3. Individual carrier results To qualify for the final report, a carrier must have received 10 or more completed surveys. In total, 39 personal lines and 38 commercial lines carriers were included. This report includes an alphabetical listing of those carriers and their results. Additionally, IA&B has an interactive, online tool of the results which allows the user to sort the results based upon carrier ranking or by any of the four key categories. The online tool also allows the user to see a side-by-side comparison of carriers and an in-depth examination of each carrier’s individual results by question.

The online tool can be found at www.iabgroup.com/csi.

4. Key findings by category and questions The survey asked members to share their opinions based upon four key categories of their carrier relationships: • • • •

Products, Pricing & Underwriting Policy Service & Claims Agency/Company Relationship Technology

Overall and on average, respondents recognized carriers for improving in all four categories.

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Survey Structure and Methodology A total of 422 members participated in the survey by completing 572 surveys (280 personal lines and 292 commercial lines). This marks a slight decrease in participation since 2008.

Driving members to distinction.

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SURVEY STRUCTURE AND METHODOLOGY

IA&B members were asked to rate at least their top three carriers for which they place business. For a carrier writing both personal and commercial lines, members were asked to consider each line of business separately.

On average, respondents rated 4.6 personal lines and 4.8 commercial lines carriers, very similar to previous years.

Participants rated their carriers on a four-point scale of satisfaction – with one (1) meaning satisfied and four (4) unsatisfied. They offered opinions on four key categories of their carrier relationships:

1) 2)

Products, Pricing & Underwriting

3) 4)

Agency/Company Relationship

Policy Service & Claims

Technology

Results allow carriers to assess performance in an independent way and compare that performance with other carriers. One goal is the overall improvement of performance for the benefit of the carrier, the agents IA&B serves and the consumers served by both.

The survey results could also serve these purposes:

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1)

For an agency to benchmark its relationship with its carriers.

2)

For an agency seeking new carriers to use the benchmark for the interview process.

3)

For a carrier to validate its perception or as a “calling” to improve.

4)

For IA&B to use constructively in dialogue with carriers.

Respondents rated 74 personal lines carriers and 82 commercial lines carriers. There has been a steady increase in the number of carriers rated by members, although nearly half the carriers were not integrated into this report since only carriers with 10 or more completed surveys are included in the final results. In total, 39 personal lines and 38 commercial lines carriers were included.

Driving members to distinction.

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SURVEY STRUCTURE AND METHODOLOGY

By comparing previous survey results, the index shows how respondents’ satisfaction with each carrier improved or declined. Of those carriers included in the 2008 results that were also included in this year’s results, members denoted a 50/50 split in personal lines, indicating half the carriers had improved while half had declined. In commercial lines, 40 percent improved their rating from 2008 while 60 percent declined.

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Only carriers with 10 or more ratings can qualify for inclusion in the final survey results. In 2010, seven personal lines carriers that were not included in the 2008 results became eligible including American Modern Insurance Group, Fireman’s Fund, Frederick Mutual Insurance Company, Grange Insurance, Harford Mutual, Kemper (Unitrin) and MMG Insurance. There were five personal lines carriers that were included in the 2008 results that did not qualify for the 2010 report including Chartis, Lebanon Mutual Insurance Company, Mercury Insurance Group, Motorists Insurance Group and Peninsula Insurance Company.

In commercial lines, three new carriers were added including Eastern Alliance Insurance Group, Frederick Mutual Insurance Company and MMG Insurance. There were eight commercial lines carriers that were included in the 2008 results that did not qualify for the 2010 report including First Comp Underwriters Group, Guard Insurance Group, Lititz Mutual Insurance Company, Merchants Insurance Group, Motorists Insurance Group, Penn Millers Insurance Company and Zenith.

Additionally, Safeco Insurance, now a personal lines only carrier, was not included in the commercial lines report due to its merger with Liberty Mutual Agency Markets in 2008. Safeco is included in the personal lines results.

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SURVEY STRUCTURE AND METHODOLOGY/KEY FINDINGS BY CARRIER GROUP

Any employee of an IA&B member agency in Delaware, Maryland and Pennsylvania was eligible to participate. Combined, principals and producers accounted for the majority of returned surveys, which was consistent with previous surveys.

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Key Findings by Carrier Group This report differentiates the carriers based upon direct premium written (DPW) and the number of states in their footprint. Carriers were divided into one of four groupings: ■

Regional carriers operating in 1-10 states with less than $100 million in DPW

■

Regional carriers operating in 1-10 states with more than $100 million in DPW

■

Super regional carriers operating in 11 to 34 states

■

National carriers operating in 35 or more states

Personal Lines Respondents indicated their highest level of satisfaction on the whole for personal lines was with their super regional carriers who improved from third overall since 2008. All groups of personal lines carriers improved their overall performance with the exception of regional II carriers who slid from first to third overall.

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C A R R I E R R E S U LT S

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KEY FINDINGS BY CARRIER GROUP

Personal Lines Respondents were once again most satisfied with the regional I carriers for personal lines products, pricing and underwriting.

Participants liked their super regional carriers next as this group jumped over regional II carriers for the next to the top spot. This is the second consecutive survey where regional II carriers dropped in satisfaction after a strong showing in both 2004 and 2006.

Respondents were again least satisfied with national carriers, but this group showed the most improvement since 2008.

Respondents were most satisfied with their super regional carriers for personal lines policy service and claims.

In fact, super regionals improved from being the carrier group showing the least amount of member satisfaction in 2008. Participants were then most satisfied with the regional I carriers followed by regional II and finally the national carriers. Overall, most carrier groups showed improvement since the last survey, but it’s the super regionals that stand out.

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With regard to the use of technology in personal lines, respondents had the greatest satisfaction with the super regional carriers who improved from third to first since 2008. Regional II carriers were the only group where overall satisfaction dropped in 2010. Overall, most carrier groups showed improvement since the last survey.

Respondents were most satisfied with regional I and super regional carriers with regard to agency/company relationship. Previous surveys showed members’ level of satisfaction was high among regional II carriers, but that satisfaction dropped off this survey period.

Respondents’ satisfaction among national carriers improved the most since 2008.

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KEY FINDINGS BY CARRIER GROUP

Commercial Lines Respondents indicated their highest level of satisfaction on the whole for commercial lines was with their super regional followed by regional I, national and then regional II carriers. This is the second consecutive survey where the participants’ satisfaction of super regional carriers improved the most overall.

Satisfaction levels increased for each carrier group except for regional II.

Respondents were most satisfied with regional I carriers for commercial lines products, pricing and underwriting for the third consecutive survey.

Both super regional and national carriers showed improved results since 2008. Regional II carriers showed a slight decrease in member satisfaction.

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Respondents were most satisfied with the super regional carriers for commercial lines policy service and claims handling, followed by regional I, national and then regional II carriers.

Super regional and regional I carriers were the only two carrier groups to show improved results since 2008.

Super regional and regional I carriers continue to show improvement in commercial lines technology. National and regional II carriers showed a slight decline in member satisfaction.

It is important to note that this was the only category in the survey where all scores for each carrier group were above 2.000.

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K E Y F I N D I N G S B Y C A R R I E R G R O U P / C AT E G O R Y A N D Q U E S T I O N S

Commercial Lines Respondents were most satisfied with regional I and super regional carriers in with regard to agency/company relationship, followed by regional II and then national carriers. Both the regional I and super regional carrier groups showed improvement since 2008.

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Key Findings by Category and Questions Participants rated their carriers on a four-point scale of satisfaction – with one (1) meaning satisfied and four (4) unsatisfied. They offered opinions on four key categories of their carrier relationships:

1) 2)

Products, Pricing & Underwriting

3) 4)

Agency/Company Relationship

Policy Service & Claims

Technology Overall and on average, respondents recognized carriers for improving in all four categories. This is the fourth consecutive survey indicating an increase in the respondents’ satisfaction.

Driving members to distinction.

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K E Y F I N D I N G S B Y C AT E G O R Y & Q U E S T I O N S

Products, Pricing & Underwriting In this category, the average score declined slightly in personal lines and showed minimal improvement in commercial lines.

Personal Lines

Commercial Lines

The company offers competitive products and features. 1.791 ––––––––––––––––––––––––––––––––––––––––––––– The company provides competitive pricing.

1.949 ––––––––––––––––––––––––––––––––––––––––––––– The company provides consistent and stable markets. 1.666 ––––––––––––––––––––––––––––––––––––––––––––– The underwriter(s) is accessible.

1.682 ––––––––––––––––––––––––––––––––––––––––––––– My underwriter(s) has sufficient knowledge and training. 1.506 ––––––––––––––––––––––––––––––––––––––––––––– My underwriter(s) is flexible when warranted.

1.970 ––––––––––––––––––––––––––––––––––––––––––––– The company has a low turnover of underwriters.

1.650 ––––––––––––––––––––––––––––––––––––––––––––– The company’s underwriter(s) respond within the necessary timeframe.

1.533 ––––––––––––––––––––––––––––––––––––––––––––– The company has clear and timely communications of underwriting guidelines and philosophies.

1.542 –––––––––––––––––––––––––––––––––––––––––––––

––––––––––––––––––––––––––––––––––––––––––––– The company provides competitive pricing.

1.785 ––––––––––––––––––––––––––––––––––––––––––––– The company provides consistent and stable markets. 1.614 ––––––––––––––––––––––––––––––––––––––––––––– The underwriter(s) is accessible.

1.754 ––––––––––––––––––––––––––––––––––––––––––––– My underwriter(s) has sufficient knowledge and training. 1.561 ––––––––––––––––––––––––––––––––––––––––––––– My underwriter(s) is flexible when warranted.

1.893 ––––––––––––––––––––––––––––––––––––––––––––– The company has a low turnover of underwriters.

1.699 ––––––––––––––––––––––––––––––––––––––––––––– The company’s underwriter(s) respond within the necessary timeframe.

1.774 ––––––––––––––––––––––––––––––––––––––––––––– The company has clear and timely communications of underwriting guidelines and philosophies.

1.700 –––––––––––––––––––––––––––––––––––––––––––––

––––––––––––––––––––––––––

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––––––––––––––––––––––– ––– The company offers competitive products and features. 1.696

Policy Service & Claims Respondents were the most satisfied with their carriers in the category of Policy Service and Claims as this classification received the best average score.

Personal Lines

Commercial Lines

The company has prompt policy issuance.

1.332 ––––––––––––––––––––––––––––––––––––––––––––– The company has accurate policy issuance.

1.179 ––––––––––––––––––––––––––––––––––––––––––––– The company offers convenient payment plans.

1.310 ––––––––––––––––––––––––––––––––––––––––––––– The company adjusts claims promptly (within 24 hours). 1.591 ––––––––––––––––––––––––––––––––––––––––––––– The company adjusts claims fairly.

1.358 ––––––––––––––––––––––––––––––––––––––––––––– The company provides effective loss control service.

1.657 –––––––––––––––––––––––––––––––––––––––––––––

The company has prompt policy issuance.

1.690 ––––––––––––––––––––––––––––––––––––––––––––– The company has accurate policy issuance.

1.521 ––––––––––––––––––––––––––––––––––––––––––––– The company offers convenient payment plans.

1.470 ––––––––––––––––––––––––––––––––––––––––––––– The company adjusts claims promptly (within 24 hours). 1.782 ––––––––––––––––––––––––––––––––––––––––––––– The company adjusts claims fairly.

1.459 ––––––––––––––––––––––––––––––––––––––––––––– The company provides effective loss control service.

1.791 –––––––––––––––––––––––––––––––––––––––––––––

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Driving members to distinction.

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K E Y F I N D I N G S B Y C AT E G O R Y & Q U E S T I O N S

Technology As with previous surveys, technology remains the area in which respondents expressed the greatest degree of dissatisfaction with their carriers. In 2010, the overall satisfaction in both personal and commercial lines declined for the first time since 2004.

Personal Lines

Commercial Lines

The company uses technology 1.622 effectively with my agency.

––––––––––––––––––––––––––––––––––––––––––––– The company supports upload/download with my 1.419 agency management system.

––––––––––––––––––––––––––––––––––––––––––––– The carrier exhibits commitment and support 1.825 to the agency’s goal for Real Time (a single workflow for servicing or quoting) such as TransactNOW or Transformation Station.

––––––––––––––––––––––––––––––––––––––––––––– The company provides technical expertise for my agency. 1.819 ––––––––––––––––––––––––––––––––––––––––––––– How satisfied are you with the company’s use 1.953 of technology and any workload shifting?

––––––––––––––––––––––––––––––––––––––––––––– The company reaches out for agent input on 2.341 technology goals for future planning.

––––––––––––––––––––––––––––––––––––––––––––– The company’s technology is reliable (up-time).

1.465 ––––––––––––––––––––––––––––––––––––––––––––– The carrier’s use of technology has provided 1.841 Real Time opportunities for my agency.

––––––––––––––––––––––––––––––––––––––––––––– The company’s technology provides an agency 1.673 with an ease of doing business.

–––––––––––––––––––––––––––––––––––––––––––––

The company uses technology 1.919 effectively with my agency.

––––––––––––––––––––––––––––––––––––––––––––– The company supports upload/download 2.219 with my agency management system.

––––––––––––––––––––––––––––––––––––––––––––– The carrier exhibits commitment and support 2.279 to the agency’s goal for Real Time (a single workflow for servicing or quoting) such as TransactNOW or Transformation Station.

––––––––––––––––––––––––––––––––––––––––––––– The company provides technical 2.171 expertise for my agency.

––––––––––––––––––––––––––––––––––––––––––––– How satisfied are you with the company’s 2.314 use of technology and any workload shifting?

––––––––––––––––––––––––––––––––––––––––––––– The company reaches out for agent input on technology goals for future planning.

2.536 ––––––––––––––––––––––––––––––––––––––––––––– The company’s technology is reliable (up-time).

1.682 ––––––––––––––––––––––––––––––––––––––––––––– The carrier’s use of technology has 2.197 provided Real Time opportunities for my agency.

––––––––––––––––––––––––––––––––––––––––––––– The company’s technology provides an 2.090 agency with an ease of doing business.

–––––––––––––––––––––––––––––––––––––––––––––

––––––––––––––––––––––––––

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––––––––––––––––––––––––––

Agency/Company Relationship In the category of agency company relationship, respondents’ satisfaction decreased slightly from 2008.

Personal Lines

Commercial Lines

The company is dedicated to the 1.692 American Agency System.

––––––––––––––––––––––––––––––––––––––––––––– The company offers a good commission schedule.

1.641 ––––––––––––––––––––––––––––––––––––––––––––– The company offers a good profit sharing plan 2.086 ––––––––––––––––––––––––––––––––––––––––––––– The company provides assistance programs 2.567 for producer hiring, perpetuation and growth plans.

––––––––––––––––––––––––––––––––––––––––––––– I have confidence in the company’s future direction.

1.709 ––––––––––––––––––––––––––––––––––––––––––––– I have confidence in the company’s management.

1.729 ––––––––––––––––––––––––––––––––––––––––––––– This company appears to be financially stable.

1.309 ––––––––––––––––––––––––––––––––––––––––––––– This company has a strong position 1.659 in my agency’s future plans.

––––––––––––––––––––––––––––––––––––––––––––– I would recommend this carrier 1.648 to a peer as a good company.

–––––––––––––––––––––––––––––––––––––––––––––

The company is dedicated to the 1.584 American Agency System.

––––––––––––––––––––––––––––––––––––––––––––– The company offers a good commission schedule.

1.681 ––––––––––––––––––––––––––––––––––––––––––––– The company offers a good profit sharing plan.

2.120 ––––––––––––––––––––––––––––––––––––––––––––– The company provides assistance programs 2.663 for producer hiring, perpetuation and growth plans.

––––––––––––––––––––––––––––––––––––––––––––– I have confidence in the company’s future direction.

1.698 ––––––––––––––––––––––––––––––––––––––––––––– I have confidence in the company’s management.

1.785 ––––––––––––––––––––––––––––––––––––––––––––– This company appears to be financially stable.

1.341 ––––––––––––––––––––––––––––––––––––––––––––– This company has a strong position 1.672 in my agency’s future plans.

––––––––––––––––––––––––––––––––––––––––––––– I would recommend this carrier to 1.632 a peer as a good company.

–––––––––––––––––––––––––––––––––––––––––––––

––––––––––––––––––––––––––

––––––––––––––––––––––––––

Driving members to distinction.

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IA&B’s Company Comparison Tool Visit IA&B’s Company Satisfaction Index interactive online tool at iabgroup.com/csi. The tool is designed to provide an overview of both personal and commercial lines results, a comparison among carriers and an in-depth look at each carrier’s individual results by question.

Driving Members to Distinction Copyright 2010. All rights reserved. No material may be reproduced in whole or in part without written consent of the publisher.

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Driving members to distinction.

Driving members to distinction.

IA&B is an organization dedicated to effectively preserve and advocate the American Agency System as a value-added distribution method, and to the development and availability of programs, products and services that partner with our members and customers in sustaining and advancing their operations.

Copyright 2010. All rights reserved.

No material may be reproduced in whole or in part without written consent of the publisher.