Frankenmuth Insurance is introducing a new Personal Auto rating approach using rating factors derived from  multivariate statistical technique. This new practice ensures each insured is charged a premium consistent with his/her own risk characteristics. Over time, multivariate rating produces a more profitable book of business for both the agency and our company.

Program Highlights:

All Personal Auto policies, effective December 1, 2011, will be written and renewed into the new multivariate program.

Territory assignments are based on zip code.

There are only minor changes in iBIS entry and output.

To simplify the display of premium,  discounts on printable applications, declarations pages, and policy downloads will no longer list the associated percentages and premium amounts. 

Pay plan discounts are available for annual, semi-annual & quarterly direct bill, EFT, or continuous credit card.  Therefore, a billing screen was added to the quick entry mode similar to what you saw with Homeowner change in April.

What does this mean for Agents?

As with any significant class plan change, policyholder premium disruptions may occur. While any disruption can be difficult to manage, it should be viewed in terms of getting the right price for the given risk.

Your upcoming renewal reports, which you should be receiving early next week, have been modified to reflect these changes.  We have attached a copy for your reference.  Remember, these reports are a useful tool to help you stay ahead of the renewals and be prepared for certain policies which may be seeing a higher than expected premium at renewal.

As always, should you have any questions, comments or concerns, please don’t hesitate to contact your underwriter, field manager or me.

Proposed Agency Renewal Reports.pdf (222.59 kb)