Carrier Quotas?

[Mike Hanson]

I'm currently a captive agent and have decided to go independent after 7 years.

I have investigated SIAA, Smart Choice etc. but most agents seem to favor starting from scratch.

Does anyone know what the production requirements are for Travelers, Safeco, Progressive, and Hartford for commercial and personal lines in the Pacific Northwest or in general if not known for the Pacific Northwest/Oregon.

Do independent companies place separate quotas for each additional state you want to sell in?

What loss ratios quotas do the independent companies require as being a captive you can run at 99% and they don't care (at least the one I work at). I know SIAA requires 60% but what does Travelers etc require?

Last one: Is it easier to get appointed with non-standard carriers like Sentry, Unitrin etc.


Thanks for your help!
Mike Hanson

 

[djs]

The only way you are going to know is to ask the carriers. It varies a lot from one area to another, depending on how much (if at all) they need additional agents writing for them.

Most require a pretty substantial book of business in the type of insurance you are looking to place with them. In other words, few will appoint you direct until you've been in business for a while (yes, a catch 22). This is a bigger issue with commercial carriers, personal lines tends to be a bit easier.

Loss ratios tend to be what they are. If you have a decent size book of business and aren't profitable, you have some 'xplainin' to do. It happens. A few big claims can put anyone over the top for a year or so. It's just the carriers want to make sure you are doing your job with field underwriting correctly.

It's been a long time since I looked into it, but you can get appointed with carriers like unitrin if you blink the wrong way. The real question is do you want to be appointed with them? Of course, they serve a purpose, but I've yet to see a business model of a successful agency built around them.

Most carriers have a rep that will gladly talk to you about getting appointed. Call and ask. Make sure you ask them why you should be appointed with them, let them sell you on the company.

Dan

 

[unitrinspecialty]

As one of the leading Specialty Auto insurance carriers in the United States, we at Unitrin Specialty are proud to have offered many independent agents their first A.M. Best A-rated carrier appointment. Our strategy calls for us to "build strong relationships with selected independent agents who demonstrate a willingness and ability to partner with us long-term", and being an early appointment often facilitates that strong relationship.

However, as we are looking for true partnerships, we do have standards and requirements that must be met, including experience in the business and potential for adequate production. In turn, we have strong multi-year relationships that have served as a strong long-term core for many very successful agencies.

James
Unitrin Specialty

 

[allen704]

As one of the leading Specialty Auto insurance carriers in the United States, we at Unitrin Specialty are proud to have offered many independent agents their first A.M. Best A-rated carrier appointment. Our strategy calls for us to "build strong relationships with selected independent agents who demonstrate a willingness and ability to partner with us long-term", and being an early appointment often facilitates that strong relationship.

However, as we are looking for true partnerships, we do have standards and requirements that must be met, including experience in the business and potential for adequate production. In turn, we have strong multi-year relationships that have served as a strong long-term core for many very successful agencies.

James
Unitrin Specialty

I work as a captive agent for the Unitrin Career Agency division. They bought our co. . we switched over in Jan. It has been a nightmare. They don't want to pay comm., have lifetime chargebacks, noone is making any $. They aren't paying like the contract said they would. Tell me something good! Is it better as a independant agency?