Chubb, National Grange, N.Y. Central Mutual and Sterling Top Performers in PIANY Annual Survey

Chubb Group, National Grange, New York Central Mutual and Sterling Insurance Co. ranked among the top performers out of 38 evaluated in the second annual company performance survey by the Professional Insurance Agents of New York State Inc.

Chubb (personal), National Grange (personal and commercial), New York Central Mutual, Peerless (commercial), Preferred Mutual, Progressive, Sterling and Travelers (personal) scored among the top five companies on six or more of the survey’s 16 performance items, according to their independent agents who participated in the survey.

Ranked a different way, the five overall top-scoring company units for all performance items combined are Chubb (personal), National Grange (commercial), Travelers (personal), New York Central Mutual and Preferred Mutual. Also scoring higher than 60 overall were: National Grange (personal), Peerless (commercial) and Progressive. The average was 56 and the range was 47 to 63.

“Feedback is vital to develop strong relationships between insurance agents and the companies they represent,” said T.J. Derella, president of PIANY. “This survey provides an outlet for agents to voice how they think the insurance companies with whom they do business are performing and in return the companies can review the results and determine where their strengths and weaknesses lie.”

The PIANY Company Relations Committee, headed by Kevin Ryan, oversaw the 2004 survey project. The survey asked New York agents to rank 38 insurance companies in a number of different categories including products and pricing; treatment of agents; marketing support; technology; claims handling; service and underwriting. As with last year’s survey, agents were asked to rate many companies’ commercial lines and personal lines performance separately.

“This rating system makes the survey more useful to agents,” said Ryan. “Many companies maintain significantly distinct commercial and personal lines operations, while agents may be active with a company for one but not the other.”

Other companies included in the survey were: AIG; Hanover; Allstate (not Encompass); Encompass; Erie & Niagara; Fireman’s Fund; Great American; Hanover; Harleysville; The Hartford; Kemper/Unitrin; Magna Carta/PSM; Merchants Mutual; Metropolitan Auto & Home; OneBeacon; Security Mutual; Selective; St. Paul; Utica First; Utica National; and Zurich North America. Companies were chosen based on the number of PIANY members representing them; however, specialty companies were not included this year.

“Using our members’ suggestions, we developed this survey to address the key performance items insurance agents were concerned about,” said Ryan. “Our goal in conducting this survey is to help agents and companies understand each other.”

Products and pricing
The companies perceived most strongly to have pricing that is competitive with other companies offering similar products are: Peerless (commercial), National Grange (commercial), New York Central Mutual and Sterling; plus National Grange (personal), Preferred Mutual, Security Mutual, Selective, Travelers (personal) and Utica First, tied. National Grange (commercial and personal) and Security Mutual repeat from last year.

Companies seen as having coverage that compares favorably with other companies offering similar products include: Chubb (personal and commercial), Encompass; Fireman’s Fund (personal) and Peerless (personal). Chubb and Fireman’s Fund scored high last year.

Treatment of agents
Agents were asked how strongly they agree with the following descriptions as applying to a company: dedicated to independent agency system; attractive agency compensation; and communicates effectively.

New York Central Mutual, Preferred Mutual and Sterling scored in the top five on all three items, while National Grange (commercial) and Peerless (personal) rated among the top five carriers on two of these performance items.

The five companies rated highest in the survey for dedication to the independent agency system are: Preferred Mutual, National Grange (commercial), New York Central Mutual, Peerless (personal) and Sterling. National Grange and New York Central Mutual repeated from the last year.

Companies viewed as offering attractive agency compensation included: New York Central Mutual, Preferred Mutual, Erie & Niagara, Security Mutual and Sterling. All companies except Sterling repeated from last year.

The companies rated highest for their effective communication are Peerless (commercial and personal) and Preferred Mutual; plus National Grange (commercial and personal), New York Central Mutual and Sterling, tied. National Grange, New York Central Mutual and Sterling ranked high in last year’s survey.

Marketing support
Companies perceived to advertise and have a recognizable brand include: Allstate, Progressive, AIG (commercial) and Chubb (commercial and personal). Chubb and Progressive scored high in this category in 2003.

The companies thought to support agency marketing are: National Grange (commercial), The Hartford (commercial), MetLife Auto & Home, National Grange (personal) and Travelers (personal), tied. National Grange and Travelers repeated from last year.

Technology
Progressive and Travelers (personal) rated among the top five carriers on both of these performance items; good technology overall and good support and help with training.

The top companies perceived most strongly to have the best technology overall include: Progressive; Zurich (small business) and Travelers (personal); plus MetLife Auto & Home, National Grange (personal) and Travelers (commercial), tied. Progressive, Travelers and Zurich all placed in the top five for good technology last year.

Companies recognized as offering good support and help with training are: National Grange (commercial), Progressive and Travelers (personal); plus Allstate, The Hartford (commercial), New York Central Mutual, Peerless (commercial) and Selective, tied. The Hartford, New York Central Mutual and Progressive were similarly recognized last year.

Claims handling
Chubb (commercial and personal), Erie & Niagara and Peerless (personal) rated among the top five carriers on both pays claims promptly and adjusts claims fairly.

Companies that agents say pay claims promptly include: Chubb (personal and commercial), Progressive, Erie & Niagara and Peerless (personal). Chubb and Erie & Niagara placed in the top five last year.

The top companies seen as adjusting claims fairly are: Chubb (personal and commercial) and National Grange (commercial and personal); plus Erie & Niagara, Fireman’s Fund (personal), Peerless (commercial and personal) and Preferred Mutual, tied. Last year, Chubb, Erie & Niagara and Peerless ranked among the top five.

Service
Agents were asked how strongly they agree with the following descriptions of companies’ service: good overall service and prompt, accurate policy issuance.

Chubb (personal), Progressive and Sterling rated among the top five carriers on both these performance items.

The top five companies perceived most strongly to have good overall service include: Chubb (personal), Peerless (commercial), Progressive and Sterling; plus National Grange (commercial and personal), New York Central Mutual and Preferred Mutual, tied. Chubb and New York Central Mutual repeated from last year.

Companies seen as having prompt, accurate policy issuance are: Progressive, Chubb (personal), Allstate and Travelers (personal); plus Sterling and Zurich (small business), tied. All companies except Allstate ranked within the top five performers last year.

Underwriting
Agents were asked how strongly they agree whether companies and their underwriting provide a stable and consistent market and whether they grant flexibility when warranted.

Chubb (personal) and Preferred Mutual rated among the top five carriers on both underwriting items.

The companies perceived most strongly to offer a stable, consistent market include: Chubb (personal), National Grange (commercial) and New York Central Mutual; plus National Grange (personal), Preferred Mutual and Progressive, tied. This is the second year National Grange and New York Central Mutual have ranked in the top five.

Companies seen as granting underwriting flexibility when warranted are: Chubb (personal), Preferred Mutual, Security Mutual, Peerless (commercial) and Sterling. Chubb, Security Mutual and Sterling repeated from last year.

“This is the second year we’ve conducted this survey and we are noticing certain trends. The number of companies making repeat appearances in the top-five lists indicates a certain degree of consistency over time,” said Ryan. “We see more agents participating this year, giving us almost three times as many people on average, rating each company or business unit (59 versus 22 in 2003). We are also finding that the companies have continued to be interested in how they ranked among their peers.”

The survey results did not disclose the number of participating agencies. PIANY is a trade association representing professional, independent insurance agencies, brokerages and their employees.