Hartford AARP, How Low Can You Go

[AZDave]

Hartford releases commission announcement, First, they said that they remain committed to the independent Agency channel. Then announce:

*Four revised base commission schedules are assigned based upon: 1. profitability, 2. production, and 3. the available opportunity and level of partnership to grow within our niche appetite of the preferred 50+ market.

*The highest base commission will be paid to agency locations demonstrating a shared focus on profitable growth and leveraging the exclusivity of our AARP Through Agents product to be a long-term partner with The Hartford.

Such 'captive' restrictions to an 'independent' agency.

Hartford can take my AARP designation and shove it up their AASS. I am so tired of competing against their direct channel.

I have had existing clients with Hartford switch to Hartford direct for major savings, and that has ticked me off. If your retired, you cannot go a day without their solicitation.

I have never seen any benefit to being an AARP Agency. Just the opposite. Funny, I get calls from really old and troubled seasoned citizens, and Hartford Direct were the ones who referred them to me. Thanks A Lot, Hartford. They did not want to deal with them, so they send them to an indy.

My AARP book is small, like $25,000, so I could care less. But I'm sure their are large agencies that are a bit pissed off right now.

Just another reason to focus on commercial.

 

[nyc2phi]

Hartford releases commission announcement, First, they said that they remain committed to the independent Agency channel. Then announce: *Four revised base commission schedules are assigned based upon: 1. profitability, 2. production, and 3. the available opportunity and level of partnership to grow within our niche appetite of the preferred 50+ market. *The highest base commission will be paid to agency locations demonstrating a shared focus on profitable growth and leveraging the exclusivity of our AARP Through Agents product to be a long-term partner with The Hartford. Such 'captive' restrictions to an 'independent' agency. Hartford can take my AARP designation and shove it up their AASS. I am so tired of competing against their direct channel. I have had existing clients with Hartford switch to Hartford direct for major savings, and that has ticked me off. If your retired, you cannot go a day without their solicitation. I have never seen any benefit to being an AARP Agency. Just the opposite. Funny, I get calls from really old and troubled seasoned citizens, and Hartford Direct were the ones who referred them to me. Thanks A Lot, Hartford. They did not want to deal with them, so they send them to an indy. My AARP book is small, like $25,000, so I could care less. But I'm sure their are large agencies that are a bit pissed off right now. Just another reason to focus on commercial.

Their direct channel is by far the worst out of any carrier as far as going behind agents back. Super discounted apposed to working with a licensed agent.

 

[insurance1822]

around my market they're not competitive at all in ANY WAY. That being said, it's definetly a black eye for the agency force

 

[Placementkid]

I remember I had a client who called in saying he was referred to me by the Hartford, under the AARP program. I had quoted him with the Hartford, but Travelers had come in better.

For some reason, the customer stayed put. Fast forward to 6 months later, he came in the front door all upset that he got a better Travelers quote from the agent across the street. This was during the time when they were rolling out their Quantum program and he just happened to get their Quantum quote which came in slightly cheaper, due to them not having to pay as much commission.

It's exactly as you say, how low can you go.

 

[Derrick]

Good thing The Hartford isn't competitive in my area. Holy cow. I love how all of these places try to squeeze us agents out but their profitability always goes down in their direct lines markets.

When you look at the SEC annual meeting, Progressive's agency channels are much more profitable as a % of revenue versus their direct lines. And I tried to scour through The Hartford's SEC filings but they don't seem to separate agency vs direct (AARP) like Progressive. And the Esurance brand, which I dug through Allstate's annual report, which does 100% direct distribution model has loss ratio of 110% and going down, but almost every company is becoming more profitable (or having less losses).

Agents write good, profitable business. You keep treating us like crap and we will keep sending you crap until you completely squeeze us out and we go to insurance companies that are 100% dedicated to the agency distribution model.

 

[nyc2phi]

around my market they're not competitive at all in ANY WAY. That being said, it's definetly a black eye for the agency force

Really? On geezer's auto through the AARP it's pretty damn cheap but again I may of been quoting against their company.

 

[Derrick]

^ you're a producer, you have no skin in the game.

This is why I'm canning my nationals & transitioning to the regionals!

You have always been an ass to me and I don't know why. Just because I'm an agent, doesn't mean that a) I shouldn't understand the insurance industry as a whole and b) more importantly, I'm going to own my own agency soon, so as per Porter's Five Force, I should know the threat of new entrants which in this case of direct, online or 1-800 numbers that try to cut the traditional middleman out.

 

[insurance1822]

shutup & give me your lunch money.

 

[agentinsouth]

shutup & give me your lunch money.

Ok- that was F'n funny. I don't do Hartford because AARP is 8% in my state, that won't get me out if bed. How low did they go in this new announcement?

 

[AZDave]

^^I haven't seen the numbers. Out of my wheelhouse, they are the lowest right now at !0%.