Columbian's Continuing Changes

[rousemark]

Columbian seems to be in the process of changing many of the things that made them a nice company to place business with. They increased the premiums on many of their plans. They did away with their employee RDs and make them independent GAs.. Did away with all their GI plans. Changed the ordinary contract to where there is no vesting of renewals once policy count drops below 20 following termination... Just received new commission contracting. Renewal commissions reduced (on one product from 12% to 7% in years 2-3).. Renewals from year 10+ changed to a non vested service fee. SI Term renewals are now 0% in all years.

On a positive note, they still have the same friendly efficient home office folks and handle problems with apps by phone instead of amendments.

 

[Newby]

Columbian seems to be in the process of changing many of the things that made them a nice company to place business with. They increased the premiums on many of their plans. They did away with their employee RDs and make them independent GAs.. Did away with all their GI plans. Changed the ordinary contract to where there is no vesting of renewals once policy count drops below 20 following termination... Just received new commission contracting. Renewal commissions reduced (on one product from 12% to 7% in years 2-3).. Renewals from year 10+ changed to a non vested service fee. SI Term renewals are now 0% in all years.

On a positive note, they still have the same friendly efficient home office folks and handle problems with apps by phone instead of amendments.

They have been trying to turn this the other direction for several years. Not sure if they can. I would think they will eventually be purchased by someone else. But that’s just my wild azz’ed guess. Nothing that I have heard.

http://news.ambest.com/PressContent.aspx?altsrc=14&refnum=28330

 

[Life Hawk]

Did away with all their GI plans.

Only reason I used them.

 

[rousemark]

They have been trying to turn this the other direction for several years. Not sure if they can. I would think they will eventually be purchased by someone else. But that’s just my wild azz’ed guess. Nothing that I have heard.

http://news.ambest.com/PressContent.aspx?altsrc=14&refnum=28330

They certainly are doing away with the things that set them apart... I know they were not a favorite of many of the FE crowd but if you used all their products, they were handy to have. Oh, and they did have a program that you would get award points each month you issued $325 monthly ordinary premium. You could accumulate your points and choose what you wanted from a catalog.. Everything from electronics to trips. They did away with that also.

 

[PA Bill]

Exploitation of niches meets the brick wall of adverse selection. This has been a pattern for awhile now.
Look for Newby's gang to be captive with KSKJ one of these days. Shoot, they just might hire him on to run the agency division. Newby knows!

 

[rousemark]

Exploitation of niches meets the brick wall of adverse selection. This has been a pattern for awhile now.
Look for Newby's gang to be captive with KSKJ one of these days. Shoot, they just might hire him on to run the agency division. Newby knows!

Most folks that wrote Columbian did not use them as a niche player.. As for the GI plans they said they discontinued them because they were not getting enough volume instead of too much.

 

[PA Bill]

Most folks that wrote Columbian did not use them as a niche player.. As for the GI plans they said they discontinued them because they were not getting enough volume instead of too much.

Good point. They seem to only want full timers, at least in these parts. They're huge in NY and NJ and operate a NML or NYL type agency system with leads.
No choice with New York regulations as 115% ain't happenin'!

 

[rousemark]

Good point. They seem to only want full timers, at least in these parts. They're huge in NY and NJ and operate a NML or NYL type agency system with leads.
No choice with New York regulations as 115% ain't happenin'!

They pay an agency bonus that brings the WL up.. Don't know what they do on the FE.

 

[Todd King]

Most folks that wrote Columbian did not use them as a niche player.. As for the GI plans they said they discontinued them because they were not getting enough volume instead of too much.

Do you believe that? From all of the things we've seen with GI plans over the years....I would say it isn't true.

 

[WinoBlues]

Do you believe that? From all of the things we've seen with GI plans over the years....I would say it isn't true.

Yeah, rates and increasing to 36 month ROP changed my using them for <40 last-ditch status.