Wednesday, October 28, 2009

News :State Farm Insurance Disturbance Creates Agent Storm

By Henry Fleet

Besides State Farm Florida Insurance Company, other companies like Allstate Floridian, Nationwide Insurance, Travelers, Metropolitan Property & Casualty, Hartford Insurance Company and even Hanover Insurance Company too have been reported to be offloading policies; or, serving memos of non-renewal. Most of the cross national home and property insurance companies scrapped their policies and retired from Florida following their incurring substantial losses after the 2002, 2004 and 2005 hurricane seasons.

Smaller insurance companies ambitious to fill void

While most policy holders who've banked all this while, on State Farm Florida for home insurance cover see themselves holding the sort straw, smaller insurance companies created in Florida are gunning for the business bounty in the horizon. However, looking back, it should be noted that even during cli! mes of prosperity for the insurance industry, finding good deals on residential policies has always been difficult. So even with agents of smaller insurance companies, eager to service the demand for policies, created by the reported exit of State Farm Florida, clubbed with the onset of the hurricane season - there still seems to be a void in the demand-supply arena. Most individuals faced with the certain loss of insurance coverage find themselves at a loss on going about evaluating and closing good policy deals.

Why the wrangle?

Home owners face the problem of trying to identify the right insurer for them. Because of the dominance by larger national insurance companies, most home owners have been relatively unaware of the various options available to them. Home owners also face a hurdle finding an insurer that will cover previously damaged or even semi-repaired homes and many face the threat of being left uninsured during the forthcoming hurricane se! ason. Agents meanwhile are stepping over each other trying to ! locate a nd insure the cream of the home owners that would be left without coverage due to State Farm Florida's recent decision to vacate the Florida property insurance market. Also, many of the agents representing smaller companies have policy guidelines from their companies that allow them to only penetrate certain areas of the state. Currently, ChoiceOne, Tower Hill, Travelers, Bankers, GMAC Home, Mercury, Liberty American, Citizens, American Strategic and Universal Property & Casualty are amongst the most prominent insurance companies in the foray at present, attempting to identify and lap up the best policy holders from the State Farm Florida fold.

The agent-homeowner connect

High premium rates coupled with curbs on insuring specific type of homes very often leaves home owners on the constant hunt for agents who'd adequately provide the right cover. Agents on the other hand find it an arduous climb to locate individuals seeking cover, since the market h! as not been sought after by the smaller companies deeply enough. The trend seems for online match-making services like that served by RateElert.com using convergence technologies, to encourage customers to register with their requirements based on which the site automatically identifies the 'just right' policy and the most conveniently placed agent. Companies like homeinsurancebuyers.org provide a premium service to uncover and locate the required policy from an insurer that is willing to service specific types of customers - and brings these customers and insurance companies together. - 23687

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