Effective March 31, 2012, two changes will be taking place with regard to reporting on agency production reports.

Changes to definition of Policy Retention and Premium Retention

Under a policy period approach, policies written in a prior period are evaluated based on which of those polices is renewed during the subsequent policy period.  Our current approach starts with January and accumulates each month so you have a full 12 months at the end of December. 

The revised approach will use a rolling 12 months with a two month lag.  Doing so allows sufficient time for renewal processing, and it will avoid unusual swings in the retention results.  Any policy cancelled flat back to the effective date will affect the agent’s retention for that year.  Any policy that is cancelled mid-term will reflect in the subsequent year.  A drill-down report will be available to show what policies contributed to the retention and cancellation ratios. 

Addition of Cancellation Ratio

As added to production reports, the cancellation ratio will serve as a leading indicator since the retention figure will always lag for mid-term cancellations.  This measure includes cancellations regardless of the policy’s expiration date.  Cancel / re-writes will be excluded from the cancel count.  Non-renewed policies will be included in the cancel count.

We are optimistic the incorporation of these changes to production reports will help provide a more comprehensive snapshot of your activity with Frankenmuth Insurance.  As always, should you have additional questions, comments or concerns, please contact your Underwriter or Field Manager.

Thank you for your ongoing loyalty to Frankenmuth Insurance.