Dear Greg,
As promised in my November 19th email to you, we have reviewed our competitive position and today amended our rate filing to reflect an overall decrease of 7.3%. We now expect over 70% of Plymouth Rock customers to see a rate decrease beginning in April. Rates for some customers will decrease by 20% or more and the average reduction for our existing customers will be about 9.2%.
Our filing incorporates three changes. First, as was done in the filings of our competitors we have quantified the impact of our new discounts on our overall rate level. In addition, our amended filing includes two new rating variables that will significantly improve our competitiveness. We will offer a 5% discount to qualified policyholders who are members of approved motor clubs. Further, we will extend the same Plymouth Rock customer loyalty pricing incentives to your non-Plymouth Rock customers. These incentives will credit these customers for the time they have been with your agency in the same manner as if they had been with Plymouth Rock. This will greatly facilitate your remarketing efforts since you can now offer your loyal accounts the same attractive pricing that Plymouth Rock customers will enjoy, regardless of their prior carrier.
As I explained last week, our strategy is designed to minimize market disruption, maximize retention of existing Plymouth Rock customers, and attract profitable new business. Our revised filing exemplifies our commitment to provide you with a competitive product. These changes complement the discounts introduced last week for completing an Advanced Driver Training course, being a Good Student or a Student Away at School. As was described more fully last week, we will also provide several key benefits like OEM coverage, Replacement Cost, Accident Forgiveness, and Deductible Dollars endorsements.
Many of you have asked about our plans for the Plymouth Rock Real Time Bonus plan in the new environment. We do plan on continuing this program in some form next year. As you know, Real Time provides you with an opportunity to increase your commission on new business and we expect this to be of continued significance next year. As the details of this program under Managed Competition are finalized we will provide additional information.
Every carrier’s submission to the Division of Insurance must be reviewed and approvals aren’t expected until the end of January. I expect that there will be some further changes required in some rate filings and more submissions made over the course of 2008 as companies fine-tune their product offerings and prices. As always, we will continue to monitor ongoing developments and keep you informed. Over the coming months we intend to offer additional value added services that will make us even more competitive for your existing customers as well as new business. We will keep you informed as our plans unfold.
I am confident you will find us to be an extremely attractive market with competitive prices, innovative product features and of course, outstanding service, backed by our industry leading True Service® Pledge. I am always interested to hear your feedback and suggestions on how we can grow together. Please do not hesitate to contact me or share your ideas with your marketing representative. I look forward to seeing many of our agents at Gillette Stadium tomorrow where several of our New Jersey agents will share their insight and experiences in moving to a more competitive market.
Thank you again for your continued support.
Hal Belodoff
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