Search
 

The Hartford's Retreat Costs Agents

In the wake of the 2004 and 2005 hurricane seasons that resulted in more than $30 billion in losses, and the subsequent legislative changes made by lawmakers that are less than favorable to the

By Michael H. Adams | Updated on May 31, 2007

In the wake of the 2004 and 2005 hurricane seasons that resulted in more than $30 billion in losses, and the subsequent legislative changes made by lawmakers that are less than favorable to the industry, a prevailing concern among agents is to what degree will insurers pull back from the market. So far the answer to that question hasn’t been pretty. Poe Financial and Van Guard Fire & Casualty have slipped into bankruptcy with all the ease of a cargo ship hit by a torpedo. Allstate Floridian is off-loading policies as fast as possible to Royal Palm Ins. Co., while USAA and State Farm Florida–among others–are taking steps to rein in their exposures. Meanwhile, the state is turning Citizens Property Insurance Corporation into Noah’s Ark, which, at 70,000 applications a month, is more likely to turn into the Titanic.

When the marquee names of the industry start making major moves that affect tens of thousands of policyholders, it is understandable that they receive so much publicity. And fortunately (or unfortunately), agents can at least maintain their livelihoods by placing homeowners’ policies in Citizens. What is sometimes lost, however, is how other decisions made by an insurer can affect agents and their bottom lines. A case in point is the recent move by The Hartford Group to discontinue writing residential lines of coverage through independent agents, a move that will affect 155 independent agents around the state, many of whom have had a business relationship with the carrier for years. While the carrier’s move will have little impact on the market and consumers, it represents one more challenge that agents face in an already uncertain environment.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2024 ALM Global, LLC. All Rights Reserved.