RESPONSE TO ARE AGENTS PAID TOO MUCH

UFAA received thousands of responses to the email that recently went out entitled: "ARE AGENTS PAID TOO MUCH?"  Unfortunately, these email responses reinforced what we agents already know and that is that we are between a rock and a hard place. Let me explain through what was a very typical response from an agent.  "Hi I am an agent who had 2,800 PIF five years ago and I now have, 2,200 PIF.  I must be one of the lucky ones because I have only had a net PIF loss of 600 policies in the last five years.  I am doing FFR's, participating in all the soliciting programs, but I just can't seem to make any forward progress anymore.  I know there are cycles in the insurance business, but geeze this has been going on way too long."

That typical response received from the agency force is problematic in many respects.  First and foremost it means that the agent has had zero growth in five years and on top of that has lost 600 policies.  600 policies is approximately $60,000 income a year.  Five years times $60,000 equals a $300,000 net loss of income over five years.  Did you get what I just said?  Not only did the agent have zero growth in five years, he also lost $300,000.00.  Better yet, take $60,000.00 times ten years and that's a net $600,000.00 income loss to the agent that he will never recoup. 

So ask yourself, "ARE AGENTS PAID TOO MUCH?"

Ok we know there is a serious problem, so what do we do?  For too long too many of you have set on the sidelines and buried your heads in the sand.  It's time to stand up and be counted as one voice.  The stronger our voice, the louder our voice and influence will be.  Join UFAA and belong to an association that exists solely for the agent’s representation and benefit. 

Interesting fact, two weeks ago FGI walked into 89 agent offices in the Houston area and handed the agents termination letters, with no stated cause.  There is an unnamed source in the Home Office that states that before it's over, somewhere around 450 out of approximately 875 agents in the Houston/South Texas area will be terminated.

FYI, if you read Techcrunch, May 13, 2010, you will see that RightSignature lands Farmers Insurance as a client.  Which in itself is not exciting news, but it is important news because they are a digital signature services company.  Hmmm, very interesting development and UFAA wonders why Farmers needs digital signature service ability for its 15,000,000 customers and have not announced it to the agency force. Anyone want to venture a guess?

Ladies and Gentlemen, it's time to make a decision are you going to settle for scraps or try to have a voice in the outcome of your livelihood?

“AGENT'S HELPING AGENTS®”

Tom Schrader

President

United Farmers Agents Association