Broker of Record

[jpo183]

I hear a lot of people talking about prospecting and trying to get them to buy new insurance or new products, etc. Has anyone just tried going out and selling service???

Most businesses don't understand that the insurance agent is not paid by them but by the insurance company. They don't realize that it cost them nothing to use you. I own a payroll company and deal with insurance agents all the time due to various product lines my clients use. I find that we are giving more service on the insurance side and we didn't even write the client. Most times they don't understand how their insurance works, etc. I recently got my P&C license and am about to sit for health/acci/life as well this weekend

I would think if you truly are service oriented (we are above and beyond service oriented) you could pick up business based on getting the broker of record..... So I couldn't write a new policy but Ill take the renewal.

I plan to use insurance noodle to write my P&C. We also have setup lines to write Workers Comp on a pay as you go basis. I plan to write workers comp and disability immediately and then once we are ready to launch bring in the rest of the lines.

Has anyone ever tried getting business through obtaining the BOR instead of writing new lines? I understand you need to be appointed or have the ability to keep the existing policy, but I would think through using MGAs like Insurance noodle, etc you could do this effectively? With health insurance this should be a lot easier since their are more MGA and product lines that go through MGAs.

Like to hear your thoughts.

 

[Full Throttle]

I'm sure you could pick up BORs, not sure you should be doing so. I tell prospects/clients there are two components to what I do: servicing your plan and keeping you educated on your options each year.

You could certainly do the servicing side without much knowledge (educating employees, helping with admin functions, processing their renewal, helping with claims questions, ect.) and probably do a better job than most brokers, however, you really need to know the in's and out's of their options beyond just quoting the similar plan options each year.

I see four options:

1. Take the BOR, but realize someone with more industry knowledge may take the account later and make you look bad, maybe even losing the payroll business.

2. Take the BOR, but learn the industry and set aside enough time to adequately service the account on their options each year.

3. Hire someone in house to be the "group person". Have that person be the expert for your company.

4. Contract with another broker for a split. They do the work and servicing, you get a split for referring the business. I would probably lear toward #4 assuming it is someone who knows the business and you trust them.

 

[maksim]

For some business that I have found... you dont get paid on the BOR change.

But in any case, you should be doing the best thing for the client, as Full Throtle explained.

 

[scagnt83]

For some business that I have found... you dont get paid on the BOR change.

But in any case, you should be doing the best thing for the client, as Full Throtle explained.

I agree. I work in the L&H world, not P&C. But ive found it varies from company to company. Some let you pick up trails and others dont, so I dont know that its a sure fire idea to steady income. Plus a huge part of what an agent offers is product knowledge. Service is a huge, but it certainly doesnt take the place of product knowledge. Without it you will eventually be the agent getting kicked out of the plan.

Team up with an experienced P&C agent. It sounds like together you could provide a well rounded service to your book of payroll business.
My firm has created an above average servicing system for 401Ks by teaming up with a very knowledgable TPA. We have had good success in gaining agent of record on plans based on service only. Then we evaluate the plan and decide if its appropriate for the business.

 

[jpo183]

Let me clarify, because I think I might have given the impression that I am going around hunting for BORs without knowing what Im doing as far as lines go. In every business myself and partners have establsihed (over 10) we never offer any service unless we can give the best. That means service AND product knowledge. The two go hand in hand.

I was simply asking is it more viable to go after the BOR. I mean if I have the BOR the original agent isnt going to get paid the renewal commission.

Are you saying the BOR will not always qualify me to get the renewal commish wether P&C or L/H/Acci?

Also I have looked at insurance noodle and Iriquios (sp) for MGAs so far. Can you recommend any others? I heard about Supieror from the boards here but it sounds like it is not the best for P&C lines.

 

[scagnt83]

Are you saying the BOR will not always qualify me to get the renewal commish wether P&C or L/H/Acci?
.

Yes this would be carrier specific...at leasts in L/H&A... im told by P&C agents that its the same in their world too.

More and more companies are doing away with paying renewals to non original writing agents who have taken over broker of record on a group plan...or on an individual policy.

 

[maksim]

jpo... I can tell you this.

when I produced for Mass while working with UBS, I wrote some policies. I then became a career agent with Mass and guess what, even though I was now the servicing agent, I still wouldnt qualify for the renewals as they were being sent to UBS, even though I just switched companies.

For life... I can tell you Amerihealth and I beleive Aetna vests the commissions for the first 6 months I believe on the group side. Dont remember for sure.

 

[jpo183]

Thanks for the info, that doesn't make sense on a business level. What incentive does the agent have to service the client if no renewals are paid. Or what incentive does the client have to stay with an insurance company if they are unhappy with their agent.

Ex: I see a lot of clients that have health agents that do not help them out at all. If they find someone they like why is the new agent inclined to keep them with the same company or help them if no renewals are paid to the new BOR? I understand it may be an incentive to get new business but if service goes out the window then net (new- people leaving) sales will suck or become a revolving door, which in essence is the same.

I checked on insurance noodle last night (which is what i plan on using for the time being) Hartford, AIG, CNA, Philadelphia, safeco and zurich BOR policies.

 

[maksim]

Thanks for the info, that doesn't make sense on a business level. What incentive does the agent have to service the client if no renewals are paid. Or what incentive does the client have to stay with an insurance company if they are unhappy with their agent.

Ex: I see a lot of clients that have health agents that do not help them out at all. If they find someone they like why is the new agent inclined to keep them with the same company or help them if no renewals are paid to the new BOR? I understand it may be an incentive to get new business but if service goes out the window then net (new- people leaving) sales will suck or become a revolving door, which in essence is the same.

I checked on insurance noodle last night (which is what i plan on using for the time being) Hartford, AIG, CNA, Philadelphia, safeco and zurich BOR policies.

The incentive is, you are doing the right thing for the client. Now flip the situation... You sell the client a policy... clients brother, whomever gets into the business and does change of BOR, now he gets the commissions for doing nothing. Client doesnt care.

So think of it this way, the way the renewals vest now... you sell the policies... and they are automatically vested for you. If someone else gets the change of servicing agent/bor, then they get to do that, yet the commissions that you were due are still payed. Esp true if the premiums were not annualized.

 

[1manshow]

The statement regarding P & C is incorrect, the renewals are paid to the new agent in all cases. Assuming the company in questions honors BORs