State Farm Insurance Ends PSP
Excerpted from a letter sent to Restoration contractors by State Farm
Dear State Farm Premier Service ® Program participant:
After recent review of customer choice programs, State Farm ® is discontinuing the National Material Supplier Program and will be eliminating the general contractor portion of the State Farm Premier Service Program (SFPSP) as it exists today. Will the mitigation PSP be going away also?
These changes will transition over time to a simplified general contractor list for our customers starting with existing SFPSP participants. "... plans to continue the water mitigation and flooring programs with as few changes as possible."
"More details will be shared as soon as they become available. Some future updates will also be posted on the State Farm business-to-business (B2B) site."
"...at this point in time, many details are being determined..."
Most of you have heard that this was coming, and the big question is whether they will continue the mitigation portion of the program. Rumor has is that only about 20% of those claims go through the PSP, and those that do are about 25% higher overall, compared to clams handled by contractors that are NOT in the PSP??
This latest "wrinkle" continues to support my contention that the Claims industry is changing dramatically, and will continue to do so for the next several years. With this volatility, and the rapidly escalating policy deductibles, the smaller claims (especially those $2,000 - $4,000 water claims) will continue to "dry up" and your traditional bread and butter jobs won't be there anymore!