Chemical Plating Facilities.

[PotentialFarmer]

I'm wondering if there's a market that specializes in this niche? If anyone has any experience in it please let me know. My Father was the Area manager in the NorthEastern seablock Maryland to Mass. including VT, Penn. and all inbetween for a chemical company who worked with distributors, manufacturers (mainly metal plating on plastic) and other things such as Harley Davidson etc. He has over 500 contacts and may be getting licensed soon to work with me on this. I don't know the players in the market, but he has 40+ years relationship as a valued source of information for making their problems go away, he's a chemist and speaks their lingo. I think this could be a home run as I'm sure these are large accounts: equipment breakdown, business stopage, liability through the roof, caustic chemicals, pollution exposure, property, fleet, you name it.

They also have a large business for metal on metal plating, things like circuit boards, chrome plated anything . . .

 

[BIG RED IS BACK]

the super large agencies have all these policies, even thou you have contacts, I dont think you have much of a chance to get them.

Plus the markets to write these, I bet you cant get access to.

But by all means, go for it, getting one might make your career!

 

[PotentialFarmer]

the super large agencies have all these policies, even thou you have contacts, I dont think you have much of a chance to get them.

Plus the markets to write these, I bet you cant get access to.

But by all means, go for it, getting one might make your career!

So guys like the:

1 Lockton Cos. $9,543,637,740 Kansas City, Mo.
2 HUB International Ltd. $4,875,399,819 Chicago, Ill.
3 USI Holdings Corp. $2,472,000,000 Briarcliff Manor, N.Y.
4 Alliant Insurance Services Inc. $2,428,240,000 Newport Beach, Calif.
5 Keystone Insurers Group Inc.* $1,784,918,649 Northumberland, Pa.

Are pretty much the players in this scene? How big is too big, I mean if I am going after a company that's only around 20MM in Gross Receipts can't I find someone that will work with me on that? I'm only asking cause it seems you know more about this than me (reason I'm posting here). I understand there's a cap on what I'm capable of, honestly I just was thinking that some of his smaller contacts could lead to larger ones in the space. I mean I have a friend who's pretty high up in Decker, and I asked him what his company looks for in an insurance agency to handle their business and he said "much much much more than you can offer" and left it at that, he said talk to me in 10 years and then if I have offices in Asia and EU with around 150 employees we could talk. So I know I have limitations, I'm wondering the steps to overcome those limitations, and if anyone else or yourself can chime in, my Dad's got some good years left in him, I can build towards that and then make moves on some of these clients.

I'm assuming its not an issue to write policies for Mid-Market companies, Co's that have around 100K - 1.5MM premium policies. But what I'm getting from you saying one may make your career is that this type of business is closer to the 5MM plus premium target . . . which would be awesome and I need to get there.

 

[cottonland]

Those are called "rainmakers". Nothing is impossible, but the services they are accustomed to receiving and require will be far greater than someone just starting out can provide.

 

[PotentialFarmer]

I'm not just starting out, I'm not a veteran yet either. I've handled companies with 25MM in Gross Receipts, never manufacturing though. My biggest companies are packaged Professional Liability policies with GL for consulting firms, law firms etc. . . just trying to find a way to utilize my father's extremely warm market, he worked hand in hand to save these companies millions of dollars on their production lines, his advice holds sway with them, big time.

 

[cottonland]

Ok. Becoming well versed in alternative risk financing is where i would begin this long journey. If captives are not already utilized, then that could possibly be your way in.

 

[BIG RED IS BACK]

OK, places that have policies like that probaly have 1 or 2 or more CSR's dedicated to JUST that policy

 

[PotentialFarmer]

Thanks, that's basically along the lines of what I needed to know.

 

[b61mack]

You need to join a cluster, check out siaa, they can give you the big carriers. Most of the big company deals are done on the golf course. I say go for it. But I don't think selling Farmers, will get you the sale.

 

[PotentialFarmer]

You need to join a cluster, check out siaa, they can give you the big carriers. Most of the big company deals are done on the golf course. I say go for it. But I don't think selling Farmers, will get you the sale.

I'm independent, been working with small agencies in tiny clusters to get business going and a wholesaler superior access, who's just got on my last nerve with 3% less commissions on all new personal lines commissions and a cut to their commercial also this February, when I asked for an explanation my rep said, we've been asking all our agents to start sending us better business, less monoline and more packaged. Since they haven't the companies we work with dropped our commission rates and we've passed that on.

Utter BS, basically sinking ship. I got too complacent with them anyhow, should have made a switch to a large cluster long ago. TWFG/SIAA are all thoughts of mine, but SIAA takes a cut of your book and TWFG if you decide to sell your book they have first right of refusal to buy it for an equal price, which I don't like, what if I wanted to pass the business on to my son.

Insure Zone Direct was another thought, but their contract has a "lesser of" past twelve months commissions or $50K charge to terminate the contract, I hate being locked into anything. Just partnered up with someone with massive connections to business owners and high end commercial real estate owners. How does Chubb do with commercial real estate? Are they competitive, is it in their appetite? I'm going to need to keep access to Chubb/Fireman's/Chartis/Lexington to handle some of the high profile clients of mine that standard and preferred carriers wont take. And I'm thinking that I'll need to go the first right of refusal so I'm curious of the big players there who has the largest appetite and competitve edge commercially. Since its looking more and more like I'll need to lock down one company to jumpstart things.