Have you heard of SIAA?

Apr 15, 2008

  1. Rhinoguy
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    Rhinoguy New Member

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    I am currently an exclusive agent and have been extremely succeful, however I am looking to switch to the Independant side. I see the benefit of both sides but I like the opportunity to receive 15% commision vs. 10%. This is obvoiusly significant long term. I have been speaking with a group called SIAA, they are a group that has about 12 carriers. Would anyone recommend joing a group? They do take a portion of your earnings. Are there any other groups you would or would not recommend? Thank you for all of your input.
     
    Rhinoguy, Apr 15, 2008
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  2. senior-advisor-indiana
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    senior-advisor-indiana Guru

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    IS that the Senior Indiana Advisors Association?
     
  3. Rhinoguy
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    Rhinoguy New Member

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    Strategic Independant Agents Assoc. they have about 12 different P&C companys you can write deals through. Strictly P&C
     
    Rhinoguy, Apr 16, 2008
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  4. 1manshow
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    1manshow Guru

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    With a successful track record I would think you could contract with a reputable regional carrier directly. Especially in this soft market situation. From what I learned in talking with SIAA, they will charge an up front franchise fee, a monthly service fee and basically a cut of the commission. We did not sign on with them for several reasons, but they do have a nice system for the right agency who needs carriers and can't commit to volume requirements.

    I certainly would send out some feelers to some competitive regional carriers before I signed away a portion of my commissions.
     
    1manshow, Apr 16, 2008
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  5. insureitnow
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    insureitnow Super Genius

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    Agreed. We looked at their model also and came to the same conclusion. I believe they also want a portion of the proceeds of your agency once you sell.

    Further, If you get 15 new and renewal commish you will be doing better then most small independent agencies.
     
  6. Rhinoguy
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    Rhinoguy New Member

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    I like the idea because it allows me to have carriers I may need on a limited basis. I also like the no minimums, not that it would be an issue nut 10-15 years down the road it might. They do pay 15% before they take their 1.5%. You should also get a year end bonus. The agency idea in my opinion is a good one.
     
    Rhinoguy, Apr 17, 2008
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  7. Soaringagent
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    Soaringagent Guru

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    Does your agency name show up on dec pages if you go through SIAA? If it doesn't... then customers might forget about you.
     
  8. aray100
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    aray100 New Member

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    I think it is a good idea if you need tohose markets to be competitive and can't get them on your own. Wouldn't you need to do a book roll over to them of your current business? I know of a producer who started off this way but with the book he had from the current agency he was with he was required to do all of the quoting himself to get it all in SIAA. May want to look into what is required of you as it may be a lot of work or upset your current book if yopu are forced to move it.
     
    aray100, Apr 18, 2008
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  9. 1manshow
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    1manshow Guru

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    One thought.....if you are "extremely successful" and earning 10%, can we assume you are making contingencies for profitability ?? If so, doesn't this get you close to, or over 15% commission ? Probably a pretty well written "non-compete" that will prevent you from rolling clients from your captive company..... seems like a shitload of work to do for taking a giant step backwards in your book size ???? I'd be wondering if I really was going to be making more $$ or not ??
     
    1manshow, Apr 18, 2008
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  10. Rhinoguy
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    Rhinoguy New Member

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    My thinking is my wife is entering the insurance arena. Instead of her being captive I think it would be wise to look at the independant route. I am being told there are no minimun requirements at SIAA. This would be nice for her while learning with my assistance. I also would like to give her the opportunity to close my turndowns. With good profitability, retention, and financial sales I am at about 13%. This is 15% before a year end bonus at SIAA. I know they take 1.5% so worst case with no bonus we are at 13.5%. For me to get a`3% bonus at my current carrier I must grow by 640 policies, maintain, 87%r retention, hit my financial requirement, and write enough renters/motorcycles/etc. to get that bonus. It is getting tougher to do by the year. I also see the disadvantage of being captive as great as we are doing because what happens when my carrier takes a 50% rate increase on certain lines. It is and has happened within the last quarter. At least the independant side I couldpossibly switch companies for them. What do you say as an exclusive other that I am sorry. It is tough to get customers and when you get them you need to be able to keep them as long as possible. I do have a non compete but they can't stop my wife from making a living. I am thinking of assisting her grow a book and not touching mine, then sell .my book. I wouldn't try and steal any customers back, I wouldn't want it done to me. The extra 2-4% commission would be extremely helpful once you are at 1-2 million.
     
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