Can insurance brokers compete with other brokers?

[David Taylor Jr]

Oh, I get you. But how can brokers compete or attract customers then? if all will offer the same premium, and probably from the same insurance company?

You have to make yourself stand out above the crowd. Do something unexpected. I literally had someone call me back out of the 15 voicemails they received simply because I didn't use a pre-recorded message and used their actual name.

 

[Markthebroker]

The example that the OP gave is illegal in NY and most other states. The only states I know that offer some flexibility with this are CA and FL.

Rebating, Insurance Law Section 2324

Well maybe that's it then. I recently wrote an autobody shop, then their renewal came in at like double. I shopped it around, and it was still the best policy for the insured, so I gave up 100% of my commission to basically buy the policy premium down. Nothing illegal about, but that's the thing, I'm in California.

 

[goillini52]

I'm in California.

That explains a lot.

 

[Markthebroker]

That explains a lot.

You mean why I am awesome and can fly?

Many people here in Ca are so high they think they are flying, but they're not.

 

[Surancedawg]

You mean why I am awesome and can fly?

Many people here in Ca are so high they think they are flying, but they're not.

There sure are a lot of homeless people in Cali, Mark. As a new approach to prospecting, have you considered putting on the filthiest rags you can dig out of your closet, smearing dirt on your face, and pacing around busy intersections holding a cardboard sign that reads "Will work for your insurance premium"?

 

[Markthebroker]

Shhhhhh! Don't give away my prospecting techniques. My competitors might be reading.

 

[Isa Al]

Not all brokers will be able to offer the same companies (it really depends on the insurance line).

At the end of the day, you're asking about prospecting and is by far the hardest part of the business.

Some network, some buy leads, some generate their own leads, some market online, some advertise, some only work referrals, etc., etc. etc.

Hey, thanks for your reply. Regarding the referrals for example if I do a partnership with a car dealer so he gets commission for every insurance policy purchase when selling a car, is that a referral? And are such partnerships legal? Knowing that I will be paying the car dealer for example from my own pocket as a commission for the new client they get me.

 

[Tahoe Ray]

Hey, thanks for your reply. Regarding the referrals for example if I do a partnership with a car dealer so he gets commission for every insurance policy purchase when selling a car, is that a referral? And are such partnerships legal? Knowing that I will be paying the car dealer for example from my own pocket as a commission for the new client they get me.

A non-licensed person cannot receive commissions (in most cases).

You can get your contact at the dealership licensed or work out some type of business structure that allows for compensation.

I was talking about existing clients referring other people that they know to you.

 

[Chazm]

You can’t give out referrals? I send clients a little something if they refer me to friends.

 

[Tahoe Ray]

You can’t give out referrals? I send clients a little something if they refer me to friends.

Sure you can. Every state has limits for nominal gifts (something like under $25). OP was talking about sharing commissions unless I misunderstood.