Thank you for your continued support of Frankenmuth Insurance. It has been a challenging winter for all of us. Fortunately, with your help in underwriting your best business, we still are off to a profitable start in Ohio Personal Lines.
It is always our goal to profitably grow our personal lines business. To help both of us achieve this goal, we are making adjustments to the auto and homeowner programs.
Auto
We are striving to become a more competitive personal lines auto market for you. Therefore, we are making the following changes effective June 1, 2014.
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Coverage base rates are being revised as follows:
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Bodily Injury -4.1%
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Property Damage -3.9%
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Uninsured / Underinsured Motorists 0.0%
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Other than Collision +9.5%
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Collision +6.1%
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Overall Auto Change: 0.0%
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Incident Point Surcharges are being revised. Incident point factors of 1 and 2 will be increased by 5%.
We believe these changes will improve our competitive position in the marketplace, making it easier for you to place more auto business with us.
As a reminder, please do not forget about the following additional discounts which are available to improve your client’s overall premium with Frankenmuth Insurance:
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Multiple Policy Discount: We now offer a 10% auto discount when you write a Patriot Life policy for your customer.
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Loss History Discount: If your customer does not have a high loss frequency and the aggregate paid on their losses is less than $1,500, they qualify for this adjustment. The loss history discount can be as much as 10 to 15%. Please use this feature as you quote new business. If you have questions, please see our Agency Blog posted on February 11, 2014.
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Group Program Discount: We have various group program discounts available. The discounts range from 3% to as much as 12%. Among the more popular Personal Lines Group Programs are the following:
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Certified Public Accountants
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Medical and Dental Employees
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School Employees
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Seniors Group
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Alumni Association
We encourage you to use these programs to provide your customers the most attractive premium.
Home
As you are likely aware, adverse weather trends continue to present profitability challenges for us in this line of business. To help us reverse this trend, we are making the following adjustments which will be effective June 1, 2014:
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Base rates are being revised. The overall rate change, by form, follow:
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HO-3: +13.6%
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HO-4: + 4.7%
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HO-6: + 2.1%
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HO-8: +12.3%
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HO-9: + 3.5%
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Overall Change: + 8.8%
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Amount of Insurance: We are revising our rate relativities on homes with Coverage A at $800,000 and above. Since our January 1, 2014 Home multi-variate introduction, we found this business segment experiencing a higher rate impact than expected. This adjustment is being made to improve our competitive position in this class of business.
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Protection Class: We are revising our rate relativity in Protection Class 10. Our goal is not to attract a great amount of business in this particular protection class, however, we found our rate relativity was very uncompetitive within the market. This modification is designed to bring our rate in line with our competitors.
We are confident these changes will help your auto new business writings, and improve your homeowner book of business with Frankenmuth Insurance. If you have any questions regarding these changes, please contact your Personal Lines Field Manager, Personal Lines Underwriter, or me.
Thanks again for thinking of Frankenmuth Insurance.
