SPRING 2014
Trade Winds
N EWS & I N FOR MATION FOR PE R SONAL LI N E S AG E NTS
M E S SAG E FR OM J I M HYATT
Contending with Direct Writers
in a Highly Competitive Market
Spring had a bit of a late arrival in 2014, but the year is off to a great start in
Personal Lines. Policy count, premium, and retention are up, and we are on track
to meet our growth goals. Thank you for your partnership, and for your ongoing
loyalty and commitment to selling Arbella!
Within the past year, we’ve all noticed an increased presence of direct writers in our market.
GEICO, Progressive, and Allstate love Massachusetts—they see it as “fertile ground” because the
Commonwealth still offers many growth opportunities for them. These three companies alone write
30 percent of the nation’s personal auto insurance. The bad news for us is that if they reach this level
of market share in Massachusetts, they will gain $1.25 billion in auto business and insure 1.25 million
vehicles. The good news, however, is that independent agents can compete!
“Direct writers aren’t
going away. Their
aggressive advertising
and “low prices” make
them seem good, but
together, we’re better.”
Direct writers’ low prices are not magic—in fact, they are very predictable. We have the ability to level
the playing field by shining a spotlight on the way they do business, and the honest truth is that some
agents really are winning against direct writers. I have spoken with many of you who have told me that
you’ve not only successfully won customers back, but you’ve even prevented customers from leaving
and buying direct. Doing this effectively requires planning, strategizing, and arming yourselves with
the right information—and Arbella can help you develop a strategy that’s right for you.
Direct writers aren’t going away. Their aggressive advertising and “low prices” make them seem good,
but together, we’re better. If you’d like more information or training on how to successfully compete
against direct writers, Arbella has many resources available—just ask your territory manager for details.
On every page of this issue, you’ll find stories, examples, and tools to help you effectively compete
with direct writers and successfully grow your business in today’s market, including sales and
marketing strategies of peer agencies, a case study that sheds new light on how direct writers do
business, and the challenges of selling condo and how Arbella can help.
With your close partnership we can maintain our share of the market and grow together. Personal Lines
will continue to improve our ability to serve you and our policyholders with great products, competitive
prices, and the responsive service we’ve become known for. I invite you to call me directly with your
suggestions, and I look forward to achieving strong, profitable growth together in 2014 and beyond.
Jim Hyatt
Vice President of Personal Lines