Page 7 - FI Round Table Program MI Final

2018 Highlights

*Actions resulting from input received at last year’s Round Table meetings

Citizenship Profit

• Leveraged the Frankenmuth Insurance Foundations to create three scholarship programs to help students • Finished 2018 with excellent results in Commercial Package, BOP, and Workers’ Compensation
attending a college or university • Continued to trend unfavorably in Commercial Auto, which was driven by both frequency and severity
• Experienced decreases in total incurred CAT loss activity in Personal Lines at $6.6 million versus
Growth $13 million in 2017
• Experienced unprofitable results in Personal Lines after Auto ended the year with a loss ratio of 68.3%,
• Wrote $16.5 million in Commercial Lines New Written Premium due to increased frequency and severity. However, Homeowners was profitable with a loss ratio of 51.0%.
• Grew Commercial Lines Written Premium by 4.8%, as well as Policy Count by 3.2% • Began offering annualized Life commissions with monthly or weekly paid options*
• Achieved a total Commercial Lines Premium Retention of 92.5%, as well as Policy Retention of 86.5% • Announced a long-desired change to our profit sharing program to maintain its industry leading reputation,
• Wrote $27.9 million in Personal Lines New Written Premium, issued 24,749 new policies and increased eliminating the Loss Carry Forward provision and introducing a new three-year profitability bonus
New Policy Count by 3.5% compared to 2017 • Awarded profit sharing to 60.1% of agency partners, which totaled 3.1% of FI earned premium
• Grew Personal Lines Written Premium by 3.6%, as well as Policy Count by 1.3%
• Achieved a total Personal Lines Policy Retention of 89.2%, led by Auto retention at 90.7% Service
• Introduced new Service Line Coverage, an endorsement that provides protection from costly excavation and
repairs to underground utility service lines on a policyholder’s property* • Maintained a strong policyholder claims satisfaction rate of 95.3%
• Introduced ability for agency partners to place resident relatives in same household on one Personal • Recorded an overall agency satisfaction rate of 8.75 (out of 10) on our agency survey. Same survey showed
Auto policy* that agents feel they receive high value for their Frankenmuth Insurance appointment, with a 2018 rating of
• Implemented pricing adjustments to newer model year vehicles to improve Personal Lines’ competitive 9.23 compared to the benchmark of 8.8 in 2015.
position in this area* • Strengthened our agency locator on fmins.com to increase agency partners’ visibility in online results and
• Increased Personal Auto Multi-Policy discount from 10% to 12% to increase the writings of account-sold provide more information about their capabilities
business* • Automatically subscribed all our agency partners to our Agency Blog communication platform to ensure
• Implemented underwriting changes to align experience periods for Personal Auto and Umbrella, which is agencies are informed of major news and updates at FI
now three years for minor moving violations and accidents, and five years for major violations for both Auto • Earned Ward’s 50 Property/Casualty Top Performer distinction for the 16th year
and Umbrella*
• Continued to gain traction in Life insurance with 93% of all agencies having quoted policies and 66% Technology
having placed business with us
• Reached in-force life policies milestone of more than 5,400 in-force policies • Implemented new Policy, Billing, Claim, Document Production, and Document Management systems
• Expanded Surety program for Commercial Lines
• Updated Property/Casualty agency contracts to achieve consistencies in format and contractual language • Rolled out new Policy and Billing platform to five Midwest states
• Delivered new sales and marketing materials that address product upgrades and changes planned with new • Conducted webinars for product and systems orientation
system, and support agency partners’ ability to present FI products to clients • Implemented on-demand training modules accessible through the iBIS portal allowing agency partners
• Completed 224 co-operative advertising projects in 2018 with more than $184,000 in co-op funds utilized to set their own learning pace
throughout the year • Provided training and support from Underwriting and eBusiness Support teams
• Processed all Commercial claims on new platform
People • Completed significant updates to Policy system based on feedback from initial states’ implementation
• Began implementation of next initiatives:
• Continued Personal Lines’ participation in the “Day in the Life of an Agent” training program to strengthen our • Claims Center for Legacy Personal Lines policies
staff’s understanding of our agency partners’ needs • Policy, Billing, Claims, Document Production, and Document Management for Personal Lines
• Conducted CSR/Account Manager Life Cross Selling workshops with several agencies • Deployed Claims photo-based estimating for Auto and finalized photo- and video-based virtual property
• Launched Frankenmuth Insurance Agency Academy with courses in: The Indispensable CSR, Agency Staffing & adjusting
Development, and Finding Your Target Market • Updated iBIS screens to display both quoted and issued life premiums on new business submissions
• Attained accreditation from the State of Michigan to provide continuing education credit • Delivered online Print-on-Demand solution for agencies with enhanced, targeted, co-branded marketing
• Celebrated FI’s 150th anniversary with year-long events, commemorative gifts, and materials materials

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