Some agents are very worried......they are starting to see some pretty hefty renewal rate increases among some long term policy holders due to the loss of persistancy. Will those with higher loss ratios see their rates drop? If you have never rated a Mercury policy with and without persistancy prior to this ruling, you don't have a clue as to how this will change peoples' rates. In some instances, the 5 year credit was upwards of 40%.
I am a Mercury agent and not concerned at all. I don't think the discount was anything close to 40%. Mercury adjusted their rates such that there was little or no impact for existing policyholders. What increases I have seen have been between $10 and $20 per auto. Rates for new customers are somewhat more competitive than before.