Originally Posted by Descant
Twenty five years as a sales rep for a direct writer. Based in Manchester, but I had accounts in NH, MA, ME, VT, FL, CA because I could access underwriters all across the country, for people with second homes or kids in far away colleges. I retired in 1999.
First, recall that insurance is a regulated industry. The Insurance Commission has a dual obligation on prices. One is to be sure companies charge rates and have reserves that are sufficient to pay claims. The other is to be sure that rates are not exorbitant or cherry picking.
This still gives companies significant latitude to increase or decrease their market share in states that are either costly or very profitable. Large companies adjust their rates to increase market share in say Wyoming, and not so much in Florida. Moving into a new market, or expanding, rates may be artificially low so they can generate enough business to support staffing as well as claims.
NH is a "take all comers" state, there is a "pool" so that insurance companies can put high risks in the pool and not carry the full burden themselves. Individual companies determine which risks they want or don't want. The pool rate won't vary much from company to company, so if you have, say, a recent series of tickets, they may put you in the pool, and you won't save a lot no matter how much you shop. At the same time, if you have a youthful operator who moves out of the house, a new application may give you a better rate, where the old company had no idea that Junior moved to Colorado. Shop your present company first.
Independent agents can shop for you, but mostly only with the companies that they have agency contracts with. Sometimes, they try to manage their accounts to keep a particular relationship in place. I used to get paid a commission on a new sale on a sliding scale based on the "quality" of the business and year end bonuses based on retention, loss ratio , the quality of portfolio compared to others in the area, etc. Pretty complicated.
In the "old days" I could pretty much ask a few simple questions and quote coverage/rates. Now, I'd have to log into "Faire Isaac" or some similar algorithm, and get tons of details, a lot of which is derived form online sources, like a credit score or driving record. This will only get better/worse as companies increase the use of AI technology.
Other thoughts. Insurance companies aren't out to screw you. The insurance commission and market forces prevent this. Calling the commission is free and they get quick responses when they call an agent or a company if you think you're being treated unfairly.
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