N.Y. insurers’ improve performance; agents still hope for better pay

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New York property-casualty insurance companies’ performance improved in the last year, although companies were rated lower for how fairly they pay producers, a new survey of agents shows.

Ratings of personal insurance companies increased by 2.4 points; ratings of commercial lines companies increased 1.6 points, according to the Winter 2011 Independent Insurance Agents & Brokers of New York Industry Index.

“These results clearly show that insurance companies are trying very hard to keep their sales forces happy,” said Kathy Weinheimer, IIABNY’s senior vice-president of industry relations and education, in a statement. “The index shows a definite trend of agents viewing their companies in a more positive light.”

Companies scored highest on the statement, “Keeps its promises, treats me and my customers with honesty and fairness”: personal lines scored 76.3, up 2.3 points from last year; commercial lines scored 76.1, up 2 points from last year, the survey reported.

The survey said companies scored lowest on “Profit sharing and commission arrangements are fair”: personal lines scored 69.8, up 2.8 points form last year, the largest increase for any individual component; commercial lines scored 69.2, up 1.3 points from last year.

Super-regional companies had the highest scores in personal and commercial lines.

Companies that write personal insurance nationwide showed the most improvement, with a 3.1-point gain.

Regional companies showed the most improvement in commercial insurance, with an increase of 2.4 points.

To assist agents, survey respondents said companies should be as agent-focused as company-focused; improve underwriting and technology; communicate; improve online marketing; help agents compete with direct writers; improve commissions; provide leads; and reduce agents’ expenses, among others.

The annual IIABNY Industry Index measures performance in areas such as underwriter empowerment, ease of use of technology, honest and fair treatment of agencies and customers, responsiveness of company personnel, and fairness of compensation arrangements.

The index, calculated by IIABNY and research firm Vincent McCabe, was based on a survey of more than 264 respondents from 238 insurance agencies.

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