Carrier Contracting Headache!

[Agent_007]

Hello all!

I am an agent in Florida who has been in the business for about two years. I am licensed in life, health, annuity, property and casualty. I have been working for an agency for the past year strictly offering P&C. I have written a lot of business for my boss and he doesnt seem to appreciate my hard work. So, I have decided I want to split away from him and start my own agency. I have experience as far as marketing, selling, management, etc in personal lines and commercial lines. All the companies that I wrote with at his agency, I would like to get appointed with on my own. I know the pre-requisites to apply to the carriers such as E&O, Licenses, office, etc, but I am running into a little speed bump. I have written with these carriers for the past year and explained this to them. What I am getting in response is, "I understand you have experience, but we only work with established agencies". SO, my question is, I have experience, written a substantial amount of premium for these guys, can't stand my boss, and would like to do this strictly on my own. How is one supposed to start an agency on their own when no one is willing to appoint? Other people have done it, so I don't see why I wouldn't be able to. Any suggestions on how to get directly appointed? I see that I could go to a GA or a brokerage, but all they really offer is surplus lines. I'm looking to get appointed with admitted carriers in my state for personal and commercial lines. If there are GA's or brokerages that offer only admitted carriers can someone direct me to them? Your helpful suggestions are considered priceless. And please, if you have a sarcastic reply please keep to yourself.

Thanks!!

Jon

 

[sgriswold]

The funny thing is, even if you are an agency most carriers won't deal directly with you unless you already have 1+ direct appointments for 6+ months and/or can transfer a large book of business to them.

I found this out the hard way while trying to get my agency situated for P&C.

Ended up using Superior Access, they give access to a lot of markets including Chubb, Travelers, Safeco, etc.

Their website front end is pretty good and the support is alright.

 

[FL P&C Broker]

Jon, what companies have you tried in Florida?

 

[TheSalesWolf]

Jon,
We've primarily dealt with Health and Life over the past years however we have recently partnered with Superior Access to offer Agents the ability to sell P&C. Check out www.TheGeneralAgent.com

 

[Agent_007]

Jon, what companies have you tried in Florida?

The main companies for homeowners that I would like to really try and get contracted with are Tower Hill, Security 1st, ASI, Universal P&C, Universal NA, Olympus, St. Johns, Homewise, Northern Capitol, First Home, and Sunshine State. Some of them arent taking in agents at the moment.

As for Auto I would like to get contracted with Infinity, Progressive, Safeco, Travelers, Allied, Mapfre, Auto Owners, Mercury, The Hartford.

And Commercial I would most likely want to go with a commercial lines brokerage that has a wide rang of companies in their portfolio that have special markets for restaurants, commercial office buildings, and small privately owned businesses.

Most of these companies I have written with in the past. If I could, I would have enough clients to bring a book of business to show that I have had experience but here in Florida there is a 2 year non compete agreement .

Do you think that if I showed them the book that I have in force at the agency I work at now and show the premium volume (around $450,000 1yr), they would be more willing to contract with me? And if I were to purchase E&O insurance with coverage that is more than the minimum($1M/$1M) and obtain ($2M/$2M) would that increase my likely hood of getting contracted?

Thanks a lot for all your help guys!

Jon

 

[FL P&C Broker]

Have you tried Citizens? You will defiantly need them to write in the state of Florida since a quarter of the people you talk to won't have any other choice. There requirements could be different since they are state backed.

Also, google Citizen takeout companies. You might be able to find a few that will let you write sine they are new. I know Homewise is a Citizens takeout company but they have been around for 2 years or so.

Another option might be to find a independent who let you write polices for a percentage and then let you buy your book after 2 or 3 years.

 

[Agent_007]

Have you tried Citizens? You will defiantly need them to write in the state of Florida since a quarter of the people you talk to won't have any other choice. There requirements could be different since they are state backed.

Also, google Citizen takeout companies. You might be able to find a few that will let you write sine they are new. I know Homewise is a Citizens takeout company but they have been around for 2 years or so.

Another option might be to find a independent who let you write polices for a percentage and then let you buy your book after 2 or 3 years.

This seemed to bring up a few more options for me to look at. Thanks for your help on this. Are Auto insurance companies as frugal about contracting agents as the home insurance companies too?

 

[saltydog]

Jon-
1. I for one commend you on wanting to be your own boss and for having the courage to step out! Kudos...
2. Your 1 yr book is $450k; that is not really what most Commercial P&C agents/owners would consider "working your ass off" from my experience. That's only about $55000 revenue to the agency or about $20,000 commissioned income to you??? am i right?
3. If #2 is the case, maybe your boss isn't as big of an a-hole as you think??? If you were producing around double that you might have a case...
4. Gaining assignments w/ carriers is a long process and i suggest you look at it as you would cultivating a sale. Have you developed a marketing or business plan you can show the carrier(s). Having one doesn't guarantee they'll bring you on, but over time it may speed the process.
5. Some other "intermediaries" you might look into are SIAA and Insurance Noodle (google them).
Hope this helps you out somewhat and gives you some perspective so that if/when you do step out you have some "bouyancy"...so to speak.

 

[djs]

Direct appointments in the first year on your own will be almost impossible. Doesn't matter how much production you've had under someone else, an appointment is a big investment and risk to a carrier. They want to know things like loss ratios, retention ratios, what the likelihood of you being profitable for them is.

You can get appointments with some non-standard carriers usually, they are not as tough. At the same time, it doesn't build you the book of business that you are probably looking for though, but it would help get you started.

As others have mentioned, start with Superior or Noodle, which will give you some breadth of markets, then work with the carriers for direct appointments. As you get the direct appointments, you move the business. In the meantime, you still have a way to place risks that you don't have a direct appointment for.

Yes, in some ways it's not fair. In other ways, it helps protect the agencies who have done their time and paid their dues.

Dan

 

[Agent_007]

Saltydog,

I was looking at these intermediaries you mentioned. Im in florida so most of the carriers they offer dont write a full range of products here and a lot of them dont even write in my state. Do you know of a site that I can find a list of intermediaries that I can look at that would write a wide range of products in my state. Also, do you know who SIAA offers as far as carriers?

Again, thanks for your help!