Carriers in Massachusetts

[Jazz10]

I am hitting a snag and some help would be appreciated. I am trying to grow my P&C business in MA. I have three good carriers for home and two for auto. Looking for another auto and possibly home carrier for more options for my clients.

Have been turned down by progressive because they said we are too small, $1.2 mill book right now and growing!!

This is something as a salesman I can not understand??? I am asking these carriers to write good business to make them money and they show no interest???

Are they doing so well they do not want an aggressive agent making them more market share?? Makes no sense.

 

[djs]

They do want aggressive, profitable agents, that isn't the issue.

You have a $1.2M book, spread over 5/6 carriers. This give you a $200K/$250K per carrier ratio. They want more business then this. Basically, they are looking for a minimum volume and they don't think you will be able to achieve it. Don't take it personally though, its likely they already have more then enough agents in the area and are getting a lot of heat for appointing more agents. They will always do it, if an agency has a history of high production and good loss ratios, but if they are already well covered in the area, they may want more then a $200K / year commitment.

Dan

 

[indienoise]

Carriers are fickle. I have a small time regional carrier who fit the demographic of my area perfectly and would get 6 figures from me every year, turn me down multiple times. Doesn't sound like much I know, but they hit a very specific niche and are still under 1MM WP in the state, for a little perspective.
Meanwhile, I get a Safeco appointment earlier this year when most agencies couldn't buy one. Still don't understand how or why.

 

[dahonored1]

Tell me about it! Personally I wouldn't want to write progressive if it wasn't for the fact that they undercut their agents by selling through direct channels. They won't appoint me either until I had two years of agency experience, so I have to write through an MGA that carries them for now.

 

[Jazz10]

They do want aggressive, profitable agents, that isn't the issue.

You have a $1.2M book, spread over 5/6 carriers. This give you a $200K/$250K per carrier ratio. They want more business then this. Basically, they are looking for a minimum volume and they don't think you will be able to achieve it. Don't take it personally though, its likely they already have more then enough agents in the area and are getting a lot of heat for appointing more agents. They will always do it, if an agency has a history of high production and good loss ratios, but if they are already well covered in the area, they may want more then a $200K / year commitment.

Dan

Thanks Dan,
Not taking it personally just frustrated no being able to get more carriers. I came form the Mortgage industry and can not understand why carriers would not want an aggressive agent writing business!

Oh well I will survive!

 

[SmartWorker]

Do it right and they'll be knocking on your door asking you to sign on soon enough.

The agency I work in had that happen with a carrier where the original rep didn't want to sign us but their boss dropped in a few months later and all but begged the owner to sign after she saw what we were doing.

 

[Jazz10]

Do it right and they'll be knocking on your door asking you to sign on soon enough.

The agency I work in had that happen with a carrier where the original rep didn't want to sign us but their boss dropped in a few months later and all but begged the owner to sign after she saw what we were doing.

Great, How did you get the exposure to let them know what you were doing?

 

[SmartWorker]

Great, How did you get the exposure to let them know what you were doing?

Honestly it was a bit of luck. If I had to guess, the original rep wasn't making his numbers so the manager was digging in to find out more.

It's likely that the rep passed because our agency because it's minority owner with one owner who is hispanic and the other is a woman. Their loss.