One Alliance Updates
Agents,
Many of you have seen the impact of the recent rate increases in Central Texas, both from a retention standpoint and when trying to write new business.
As you've seen, most of this pressure is concentrated in Territories 13 and 6, where rates increased significantly.
Across much of the rest of the state, the changes were relatively minor. For example, Harris South saw approximately a 7% increase, while Harris North was essentially flat.
We are still closed for North Texas. We send this note in case you have opportunities across the state.
I know many of you prefer the HOB product, and historically I have been one of its strongest advocates. However, I wanted to share some observations regarding our HOA Plus product.
If you review the base rate differences between the HOB and HOA Plus forms, the starting premium point is dramatically different. In many of the examples I've reviewed, HOA Plus premiums are more than $1,000 lower than comparable HOB policies.
The market has also changed considerably over the past few years. Many carriers are now severely limiting slab and water backup coverage, even on their HO-3 and HOB products. For example, some competitors are limiting slab coverage to 15% of Coverage A or a maximum of $25,000, while water backup coverage may be limited to just $5,000.
With that in mind, our HOA Plus coverage may not be as far removed from the broader marketplace as it once was.
For price-sensitive customers, would you be open to presenting HOA Plus as an alternative option?
This approach may help retain some customers who are struggling with premium increases and could also create additional opportunities for new business that may otherwise be out of reach.
We recently noticed a significant increase in HOA Plus submissions and took a closer look at the reasons behind it. The premium difference appears to be a major factor, and I believe it is worth discussing whether we should make this option more visible in appropriate situations.
One Alliance remains a strong supporter of the HOB product. However, the market continues to evolve, and it may be time to ensure customers have access to both options so they can make an informed decision based on their coverage needs and budget.
I've included the base rate comparisons for your review. While these figures do not reflect discounts or surcharges, they clearly illustrate the difference in starting rates between the two forms.
I'd appreciate your thoughts and feedback.
Thank you for your partnership and support.