The J.W. Marriott Buckhead Hotel
April 19-21, 2006
The 2006 Blue Streak Advisory Council, hosted by Central’s Southeast Regional Office,
was held April 19-21 in Atlanta, Georgia. The Blue Streak Advisory Council members
for 2006 are:
Central Regional Office
Jim Baker Jason Lyall
Glazier Insurance Agency Inc. Rankin & Rankin Inc.
Jefferson, Ohio Zanesville, Ohio
Forrest Sherer Insurance
Terre Haute, Indiana
Southeast Regional Office
Ruth Hoke Dennis Lam
Allen Tate Insurance Services Donald H. Bailie Agency Inc.
Charlotte, North Carolina Augusta, Georgia
Dee Ann Twomey Randy Wright
Jennings M. Bryan Agency Inc. Carlton Wright Insurance Agency
Burlington, North Carolina Roanoke, Virginia
Southwest Regional Office
Linda Byford Mickie Comiskey
Hub International Southwest Agcy Focus Insurance & Financial Svcs.
Santa Fe, New Mexico Houston, Texas
Compass Insurance Agency Inc-Mueller Division
The 2006 Blue Streak Advisory Council incorporated sessions and discussions on a wide
variety of topics. This year’s agenda included a look at Central’s year-to-date results, an
Agents’ Roundtable where participants shared information regarding competitive
conditions and trends in their respective markets, an update on Central’s new Customer
Services organization and a discussion on potential future product development ideas.
The Open Forum concluded Friday’s final session. Council members used each of the
sessions to provide Central with valuable counsel on how to improve its products,
programs and services. These suggestions—along with Central’s responses—are
provided on the following pages.
Customer Service Suggestions
♦ Some agencies would like Central to explore the possibility of offering a Service
♦ We are looking at ways to provide service features that will enhance agency
value. Will it be in the traditional Service Center format? Probably not. Our
research indicates that neither agencies nor companies are more efficient using the
standard Service Center model. We are looking at ways of providing service and
functionality that allow both agents and Central to streamline processes and
♦ Historical billing information needs to be made available on the internet.
♦ We are currently working on a new billing interface for agents. It will include
billing history displayed as a ‘statement of account’.
♦ Billing service fees should be reduced when multiple policies are on an account.
♦ When the new billing system is implemented, insureds will have the option to
combine policies at the account level. Policies that are billed at the account level
will see a reduction in overall service charges.
Information Technology Suggestions
♦ The internet application question “any other insurance with company” should be
prefilled with all existing policy numbers.
♦ We will consider this request in conjunction with a future project in which we’ll
determine how to make our internet programs account-driven rather than policy-
♦ The system should be automated so that the auto data floods into and updates the
PUP policy mid-term when an online automobile change is made.
♦ This is a suggestion we’ll consider as a future enhancement.
♦ Agents need the ability to email applications to their customers.
♦ This is on our priority list as an upcoming future enhancement.
♦ Agents need to be notified when claims are denied.
♦ Our claim representatives provide notification to the agency when a claim is
denied. If at all possible, we attempt to bring the lack of coverage to the attention
of the agent prior to notifying the insured of the coverage denial. If you believe
you are not receiving advance notification, please contact your regional Claim
♦ Policyholders often want to know how much was paid on a claim. Central should
provide this information to policyholders on its Just For Policyholders section of
♦ Claims is looking at providing this additional information on the website.
♦ Central should provide its agents the results of any claims service surveys it
♦ Over the past five years, we have sent out over 4,000 surveys. Nearly 98% of
surveys indicate respondents had a positive experience. If you need more
information about these surveys, don’t hesitate to contact your regional Claim
Product & Underwriting Suggestions
♦ Hybrid vehicles are becoming more commonplace. Central should offer discounts
for this type of vehicle.
♦ We will evaluate as more data becomes available for this vehicle type.
♦ Central should consider making Identity Recovery available as an endorsement on
auto policies in order to provide coverage for monoline automobile customers
where the agent is unable to write the homeowners.
♦ We will explore this idea.
♦ The Plus Ten endorsement provides Personal Injury coverage of $10,000. Central
should look at increasing this amount to the Coverage E limit.
♦ The Summit policy already provides Personal Injury protection up to the
Coverage E limit. The Plus Ten endorsement, priced at $25 per policy, was
designed to be an affordable alternative package of coverages for people who
didn’t want to purchase or didn’t qualify for a full-fledged Summit policy.
Customers who desire additional Personal Injury coverage beyond what the Plus
Ten provides today can either move to a Summit policy or have their
Homeowners policy endorsed with the Personal Injury endorsement.
♦ Central should consider developing a more comprehensive Homeowners
♦ The Central Mutual Summit® policy has been our flagship Homeowners product
for many years and our preference is to keep Summit front and center. We
reinforced this recently by adding eight new coverages to the policy as well as
enhancing a number of existing Central Mutual Summit® coverages.
♦ Will Central consider becoming a market for motorcycles—not so much as a new
business market but for current Central customers who have these toys?
♦ This is not in our plans at this time. However, we will continue to monitor this
♦ Central should consider writing monoline Personal Umbrellas.
♦ The pricing for our Personal Umbrella program is based on the premise that
Central also insures the underlying automobile exposure. The majority of the
underwriting expense in evaluating the umbrella exposure is tied to the
automobile exposure. By requiring the auto insurance as underlying coverage,
that expense is retained in the auto policy and allows us to keep our expenses (and
as a result, our premiums) lower for the Personal Umbrella program. We do not
intend to begin writing monoline Personal Umbrellas.
♦ Central should consider offering additional package credit for writing HO4
♦ We have already begun this process. As a first step, we’re filing package credits
for HO4 policies when they’re written with the auto. We want to not only
encourage HO4 policies, but also encourage packaging them with the automobile.
♦ Council recommended the following action points that would help Central reverse
its negative Dwelling policy count trend:
a. offer more competitive rates
b. offer an enhanced Dwelling policy
c. allow more than four units on a single Dwelling policy
d. allow standalone Dwelling business, particularly for Blue
e. soften the ITV requirement from 100% to 80%
f. Be open to writing Dwelling policies that, though
owned by LLC’s, are true personal lines-type exposures
♦ In years past, our Dwelling book has experienced mixed results. However,
Dwelling has done very well for us four out of the past five years. We are
increasingly comfortable at the prospect of opening up for more Dwelling
business and will take the ideas Council rendered into consideration as we look
for ways to profitably grow this important line of business.
♦ Some customers don’t always opt to rebuild after a total loss. Central should build
a “cash out” loss settlement option into its Summit endorsement.
♦ The policy already allows the insured the option to not rebuild. The insured has
the option to settle the loss on an ACV basis. We also allow the insured to use up
to the replacement cost of the structure to purchase a replacement home.
To provide “cash out” settlement above ACV or what the insured actually spends
for replacement of the home would lead to an increase in the moral hazard.
♦ Policyholders sometimes question the value of Summit, Plus Ten, Auto Plus or
other enhancement endorsements when the premium charge is shown on the
declarations page. Please consider removing the premium charges from the
♦ We’ll consider this request.
♦ As a valued-added service, Central should provide its customers with copies of
any high-value inspections it conducts. Agents can use this as an additional
♦ We like this idea and will work to develop it.
♦ Central doesn’t allow Restricted Performance Vehicles in its Premier or
Advantage tiers. If the driver is a mature operator, Central should have no
reluctance to offer them preferred pricing.
♦ We will consider this request and make changes as needed on a state-by-state
♦ Central’s boat and recreational vehicle pricing is not as competitive as it could be.
♦ We will continue to monitor the competitiveness of our boat and recreational
vehicle program and make changes as warranted.
♦ Central should provide deeper discounts for customers who choose the highest
♦ Although our experience by deductible does not suggest we should offer
additional discounts for higher deductibles at this time, we will evaluate this
request in each state as we conduct competitive analysis.
♦ Central should provide a discount for jewelry that’s protected by an in-home safe.
♦ We’ll consider this request.
♦ Break out the update list by subproducer code.
♦ Our goal for the update list is to make it available electronically on the internet.
When we develop the electronic version of the update list, we’ll consider this
suggestion at that time.
♦ Develop a “Paid In Full” discount to be applied to Personal Lines policies.
♦ We will study this request.
Blue Streak Program Suggestions
Central is very interested in keeping the Blue Streak program as fresh, vibrant and
meaningful as possible. During Friday’s Open Forum, the Council spent time discussing
the program in general. As “homework,” each attendee was asked to think about and
(a) three things you would like to keep about the program;
(b) three ways the program can be enhanced.
The Council’s feedback regarding Blue Streak is published below. Central will consider
these suggestions going forward as we continually work to keep the program meaningful
for you, our trusted Blue Streak agency partners.
♦ Blue Streak Seminar training session
♦ Blue Streak Advisory Council
♦ Priority service that Agency Services provides
♦ Priority claims service
♦ Quarterly Blue Streak Reviews
♦ Blue Streak claims draft authority
♦ Blue Streak Seal of Confidence
♦ Blue Streak’s personal touch
♦ frequent visits with the underwriter
♦ Restore the separate relaxed underwriting criteria for Blue Streak agents
♦ Special President’s Circle qualification criteria for Blue Streak agents
♦ Increased commission for Blue Streak business
♦ Increase the amount of co-op funds available to Blue Streak agencies
♦ special Blue Streak rating credit to assist in retention
♦ waive photos of Dwelling risks for Blue Streak agents if the home is < 40 years
♦ add small incentive plans for CSRs and support staff
♦ consider holding Advisory Council meetings twice per year
♦ hold more regional Blue Streak meetings
♦ Provide a Blue Streak bonus if certain established goals are met
♦ Continue to develop marketing materials for exclusive use by Blue Streak agents