Carrier Offered Me Direct or Alliance Option

[Smit82]

We have a carrier we've pursued in the past and got an arrangement to get access to them as a branch of an alliance we recently joined. We are a small agency.

Once talks began with the carrier & they saw our loss ratio and production with our two other main carriers & they then gave us the option to just go direct instead of through the alliance with the same production goals.

Something doesn't seem right right though... what is in it for the carrier to suggest I go direct instead of through the alliance? They left the decision up to me on what way I want to go.

Should I go through the alliance?
-Split in commission
-National alliance account on my side (easier to keep contract)
-Book stuck in alliance by contract

Or go direct?
-Full commission
-Could potentially have less control (lose contract easier)
-Book can be rolled anywhere at anytime

Anyone else been in this situation?

 

[indienoise]

We have a carrier we've pursued in the past and got an arrangement to get access to them as a branch of an alliance we recently joined. We are a small agency.

Once talks began with the carrier & they saw our loss ratio and production with our two other main carriers & they then gave us the option to just go direct instead of through the alliance with the same production goals.

Something doesn't seem right right though... what is in it for the carrier to suggest I go direct instead of through the alliance? They left the decision up to me on what way I want to go.

Should I go through the alliance?
-Split in commission
-National alliance account on my side (easier to keep contract)
-Book stuck in alliance by contract

Or go direct?
-Full commission
-Could potentially have less control (lose contract easier)
-Book can be rolled anywhere at anytime

Anyone else been in this situation?

Do you see yourself having trouble meeting the production goals? If not, go for it. Sell the hound out of their product. If you're right on the cusp, you might turn out to be okay. If you lose the contract, at least you gave it a go, and you're no worse off for rolling to an alliance or MGA than you would've been if you'd started with them from the get-go.

If they offered you the direct contract, clearly they saw something they liked.