Allied/Nationwide

[whatyouwantfinally]

If a carrier wants to reduce commission going forward because it will allow them to be more competitive and stable then fine. That's at least what I got from State Autos announcement. You then have a choice to write with them or not. However, reducing existing renewals is some bs.

Cutting existing renewals is much worse, but if a company can't be competitive and stable without paying considerably less than its competitors and isn't offering some other unique value, it isn't really competitive or stable.

 

[myfakename]

It is across the Board.

Commercial too?

 

[tpowell138]

Commercial is remaining the same, with our contract....

 

[shawnmwalker]

Hold on team,

Ya'll have great points. I struggle w these treads because I have a fine line to walk here given my lack of anonymity.

Carriers are attempting to get in line with two other huge national carriers. Actions those carriers took targeted the main section of the distribution channel. Lets say the cuts hit 95% of the channel.

Commission cuts are never good. Groups do negotiate to reduce the pain for their agents. I have been on both sides of the table for these conversations.

As a group we communicate very loudly with our agents about what our selling behaviors tell our carriers at senior levels. What message are you sending Senior Leaders via selling? Are you selling Essential and cutting your throat?


WE AREN'T!


What will your Selling Behaviors tell the industry leaders going forward? ("OH, well, we'll just keep selling price, Shawn, cause if I don't the agent down the street will!"- And Carriers will keep cutting you.

So Refuse to sell something

Ins1822 will fall bacl on his goto line, "You Don't know what its like in the trenches Shawn and i make more $ than you!")

Team, Groups may not be your ideal because you want ULTIMATE FREEDOM but its in moments like these it is nice to be part of something organized and larger.

 

[insurance1822]

^When you're commenting to people asking about what groups offer etc, your threads are detailed & carry a different narrative/tone. Now (which you humbly admitted..) you are a bit more subtle. I don't like that.

My stance is you guys should be reaching out to leadership at SIAA, Iriquois & having closed door meetings. For the greater good, turn off all members ability to write these carriers because it's necessary for the future generations to not be screwed by carriers. Start rolling the books.

But, you won't do that. Because you're making your money on those contingency checks w/ those carriers.

The only way this stops is if large groups band together & take painful action for a cause greater then their monthly paycheck. Which, they won't do.

It aint my dumb @$$ writing higher priced plans that's going to do anything. It has to come from you aggregators pushing back hard. Making difficult decisions that will piss off many agency's who aren't on board, but that's what leadership is. SIAA didn't do it when they had the chance w/ Travelers because they're making how much on that 450MM book. You have senior leadership at the aggregators refusing these decisions because they're making too much money.

The writing is on the wall here.

Shawn - what is different about Travelers & Nationwide that they're doing this & doing it first? Why wouldn't all other companies do this in a similar timeline? How do you apply this to a 3-5-7 year timeline?

 

[AZDave]

Why wouldn't all other companies do this in a similar timeline? How do you apply this to a 3-5-7 year timeline?

I don't think we want to know the answer to this.

 

[whatyouwantfinally]

Carriers are attempting to get in line with two other huge national carriers. Actions those carriers took targeted the main section of the distribution channel. Lets say the cuts hit 95% of the channel.

Wouldn't it be reasonable to assume, then, that the reason carriers are attempting to get in line with these 2 biggies is because they saw these guys do what they did without any consequences from distribution channels?

----------

Shawn - what is different about Travelers & Nationwide that they're doing this & doing it first? Why wouldn't all other companies do this in a similar timeline? How do you apply this to a 3-5-7 year timeline?

There's always a first guy to smash out the store window and run off with a new TV. Full on looting starts when everyone see he's getting away with it.

 

[shawnmwalker]

Ins1784,

You may not like it, but you KNOW, I can't talk about commissions or tactics on a National forum in regards to a specific carrier. What we do or don't do. What we have negotiated or failed to Negotiate. (All that info is 100% available to our agents)

I like the idea of the groups banding together. I don't think it does not happen because of paychecks. Does SIAA Make decisions at a National Level that effect you? When was the last time that happened? If they came down to all the regional hubs and said this is how it is going to go. Would it play out? Do they have the mechanisms in place to do it?

 

[FL P&C Broker]

Ins, let's start IAOIC...insurance agent owned insurance company

 

[Matt37]

Carriers are cutting because of irresponsible underwriting.

State Auto I know for a fact .. their combined sucked last year because they were writing like 7 cent property rates.

I agree the marketplace is a total joke right now.