Has anyone competed against Federated Insurance Co.

Alsky · 02-24-2008, 01:14 PM

I was quoting an AC and Heating company for a small group plan and was told about this company from the owner. I think they are a captive company and do not offer Individual Health, only group.

The company specializes in business insurance for selected industries, including:

Auto dealers and auto parts wholesalers
Petroleum marketers and convenience stores
Building contractors (materials, hardware, electrical, plumbing-heating-cooling)
Equipment dealers (agricultural, lawn and garden, construction)
Machine and tooling shops
Printers
Tire dealers
Jewelers
Funeral Services

If the owner was accurate in what he was telling me, their rates seem to be very good and wonder if it is even worth pursuing. They apparently deep discount their rates to certain types of business's (above).

I was wondering if anyone could share some info about this company and suggestions when competing for the same business.

Thanks...

Delta76 · 02-25-2008, 11:06 AM

I compete with them in the small group market in Minnesota. In fact, they are headquartered about a 60 minute drive from me. They are captive and I have yet to ever see an individual policy issued by them. Federated is the only competitive captive carrier here.

In the group market, they can be tricky to compete against. Depending on the size of the group and how much they want the business, they will utilize a strategy of switching risk pools. Federated has two risk pools that they will switch between (obviously one is priced better than the other) to win the price game.

I find that Federated, at least in these parts, has a lot of brand loyalty that carriers over from their P&C operation. If you loose this group, make sure to stay in touch. I've found that the rate increase in the second year can be hefty and with the Federated agent unable to shop, you probably will have an opening.

Hope that helps.

Alsky · 02-25-2008, 11:23 AM

Thanks Delta...it does help.

warrenins · 02-25-2008, 02:55 PM

Delta is right on Alsky. Federated in Georgia has been very competitive on the Commercial P&C in the past and at one time (years ago) they had a little presence in the mid market group in Ga., but I always knew to keep the business name and number because the next year usually meant large increases

Alsky · 02-25-2008, 05:36 PM

Thanks... haven/t lost it yet, but if I do, I will definitely take your advice. Thanks again guys.

Delta76 · 02-26-2008, 01:28 PM

Good timing on this thread, I just got off the phone with a small machine shop owner that I have talked to on and off for over a year now. We're meeting next Tuesday to discuss alternatives to his Federated plan. It didn't work until this point because he had an employee on COBRA holding the group hostage. The current agent isn't competition because he can't work with any of the other carriers and the group is on the highest rate table currently (due mostly to the COBRA employee). Stay after the Federated groups you run across. It's easy to get an email address, drip on them with a monthly newsletter, and call at renewal to "check-up" each year.