Added 5/14/2007 by anonymous
Theres a New Vision being perpetrated by Farmers and the only part of it that includes existing agents is to push them out of the business and use their client base to sucker in new agents with the promise of pre-existing business transplanted into their new agencies.
Massive Influx of New Agents
Farmers District Managers are observed as hiring in as many new agents as possible, just as fast as they can get them through the licensing process. These new agents are told of future riches always just around the corner. The most common numbers reported are $150-250k a year in income in addition to a make your own schedule and live your life as you always wanted to attitude. Need to take Wednesday off to take your son to a football game? No problem, you are your own boss!
Farmers has lately been steadily raising their rates and reducing coverage. In order to offset their newer and harder to sell rates and products they need to find naive agents with no prior insurance experience whom will burn their family and closest friends and fall out of the system.
Pushing Out The Old Agents
Current agents are hounded and blackballed out of the system by the District Manager by several shady tactics.
- If your agency isnt growing, you will receive lower commission or lose your agency
- Sell more life insurance or be blackballed by the District Manager
- District Managers create and spread rumors about existing agents so other agents hate them.
- New agents are given current Farmers Client lists and told to solicit them away from existing agents with lower premium quotes.
- Find any and all reasons to terminate existing agents
The biggest problem with the lower quote tactic is at the least it creates disdain for the existing agent and client relationship because the client will call up wondering why they have been charged so much for insurance! The new agent will often be instructed to add on discounts that may or may not be applicable to their situation, regardless if it belongs, the lower number creates confusion for the client
Ethics, Who Needs It?
New agents are told on one hand that ethics are important, however they are instructed on several levels that its ok to bend the rules and lie to get policies sold. Some examples of this:
- Telemarketing/Cold Calling training – Hello Mrs. Smith, I’m calling to follow up on the postcard I sent you? Oh you didn’t get it? Well… (agent never sent any out)
- Retirement Community Discount – Some agents quote homeowners insurance in surrounding areas with a retirement community status to lowball the rate even though the homeowner doesnt live in the community, just near it.
Older Agents, What Can We Do?
Farmers Districts are often filled with agents whom have been on for 10 or more years that no longer want anything to do with the District Manager. We as Farmers Agents have been growing more and more concerned that the company no longer cares to have a professional agency network to service their policyholders. Our clients use us as agents because we tried everything we could to earn their business and be their trusted advisor. They count on us to be honest with them and provide them the best insurance money can buy. However it is becoming more and more difficult to keep our promise. Farmers District Managers encourage new agents to make us look bad and even if there are fallacies to what the other agents say about us, it damages the reputation of either us as the existing agent, the new agent or Farmers as a company that has agents that work in this manner.
There are so many Farmers Agents now. They are on every corner! Its becoming so competitive that we have practically run out of new business prospects and all that is left is for the new hungry agents to cannibalize our client lists. |
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