Thank you for your “frank” input at our recent Executive/Agency Round Table meetings. As mentioned in these meetings, Frankenmuth Insurance views Ohio as a very important state.  We are eager to grow in both Personal and Commercial Lines’ business, and the input you provided assists us in delivering competitive products to present to your customers so we can both achieve profitable growth.  

To assist your Personal Lines’ growth efforts, we will be making the following modifications to our auto product, which will take effect on June 1, 2016:

Rate Change:

Overall Rate Change: -0.2%

• Liability: 0.2%
• Collision: -1.2%
• Comprehensive: 0.5%

Revisions:

• Experience Point Factors:  Decreased rate relativities for policyholders who experience three or more rating points based on violation activity.  
  Benefit: This will improve policy retention and overall competitive position.

• Lienholder/Loan/Own Vehicle – Rate Relativities:  Decreased rating discount factors on leased and loaned vehicles. Based on input at the Executive/Agency Roundtable Meeting, we reviewed the rate relativities of this rating attribute.  We will also be reviewing this rating variable during the Multivariate Auto Refresh later this year.  If we find further changes are justified for this rating attribute, we will implement those changes during our next rate change. 
  Benefit: This will bring pricing closer together on all vehicle ownership types.  

• Territory Adjustments:  Decreased rates in several geographic regions based on overall profitable experience.
  Benefit: Our rates will be more competitive in many areas.  Please consult with Leslie Petulla, your Personal Lines Field Manager, for information on the total impact in your area.  

We believe these auto changes will provide the consistent, stable market to assist you in achieving further growth.  Please contact Leslie Petulla or your Personal Lines Underwriter if you have any questions.  

Thank you for your continued support and partnership with Frankenmuth Insurance.