We strive to deliver clear and effective communications to our agency partners, and to enhance our mutual trust by explaining the rationale for our business decisions.  In the Agency Bulletin issued October 28, we reported on our profitable results, then announced restrictions on new business payment plans to help manage premium growth.  We understand this sent a mixed message, and would like to take this opportunity to provide clarification.

Long-term, consistent profitability of our Personal Lines business is one of Frankenmuth’s highest priorities. This is essential if we are to be a stable market for your PL customers. We are closing in on a second straight year of profitability and we remain focused on managing the overall performance of the Personal Lines book of business, including premium growth.

The changes we’re making in payment plan options will provide the greatest flexibility for customers with high Insurance Scores, who offer the most potential for profit.  They apply only to new business, and will have no impact on your renewal customers.

Here are the details:

New Personal Lines customers with Insurance Scores of 743 and above (tiers 331-340) are not impacted by the change in payment plan options. They will continue to enjoy the flexibility of all available payment plans. 

New Personal Lines customers with Insurance Scores of 742 and below (tiers 101-230) will no longer be eligible for payment plan options.  We will require full premium payment from these customers.  Continuous Credit Card is an option, but only for the full amount of premium. 

We appreciate your support and want to acknowledge your efforts in helping us improve our results.  We remain focused on the long-term stability of our Personal Lines business for your best customers.

If you have any questions or wish to discuss these changes, please call your Personal Lines Field Manager, Underwriter, or me.