Thank you for your continued support of Frankenmuth Insurance.  Our goals are to achieve consistent long-term profitability and to have stable renewal pricing.  To achieve these goals, we must maintain a disciplined approach to our product and pricing.   

 

We want to advise you of changes being made effective May 1, 2013 to our Homeowner product: 

 

Home Rate Adjustments:

 

·         Loss History Discount:  We are slightly increasing the 3 and 5 year loss history discounts.  This will assist you in writing and retaining more loss free customers. 

·         Age of Home:  We have found loss ratios tend to deteriorate on homes more than 40 years old.  We are implementing revised pricing factors on these homes.

·         Amount of Insurance:  We are adjusting our rating factors on homes with Coverage A of $200,000 and above.  The adjustment is minor at the $200,000 Coverage “A” level and increases to 10% at the $1 million Coverage “A” level. 

·         Protection Class Factors:  We are slightly increasing our pricing on Protection Class 8A, 9, and 10 business. 

The overall Homeowner rate change is neutral.  We are revising territory relativities to have a broader spread between the lowest and highest rated territories, so you will notice some geographical areas slightly above or below a neutral rate change.  Please feel free to consult with your Personal Lines Field Manager or Underwriter for details on your geographical area.

 

Home Rule Changes:

   

·         Multiple Policy Discount:  The multiple policy discount will be available to customers who insure both their home and Business Auto with FMI.

·         All Peril Deductibles:  The $100 All Peril deductible and the $100 All Peril / $250 Theft deductibles are being eliminated.  Policies with these options will be renewed at the next appropriate deductible level.  A notice to policyholders will be sent.

Personal Umbrella: 

 

An overall increase of 4.8% is being taken on Personal Lines Umbrellas effective May 1, 2013.   As part of this overall change, you will notice per unit pricing adjustments for each additional auto, recreational vehicles, inboard / outboard boats with 101+ horsepower, and incidental farms.  Also, our higher underlying limit discount is being adjusted from 15% to 13%. 

 

Again, we appreciate your support and loyalty as we seek to achieve long-term consistent profitability and return to stable, disciplined pricing.  We are confident this will assist you in retaining your best business with Frankenmuth Insurance. 

 

If you have any questions, please do not hesitate to contact your Personal Lines Field Manager, Underwriter, or me. 

 

In Partnership,

 

 

John Pfister, CPCU, CIC

Director, Personal Lines