I've been captive for 15 years and I'm 125% vested. The company owns a brokerage so I've got access to several top indie companies, but they take a commission split. My captive company just announced they're pulling out of homeowner and will only be an auto carrier. Previously they pulled out of dwelling fire and paid us vesting. But they said they are not paying vesting for the home business and alluded to being prevented from doing so for some reason. They're going to set it aside for the future. My first question is...did they somehow violate the agency contract by paying the vesting? Secondly, I want to go independent but can't afford to start over again with no clients. If I get contracts with other carriers, they will find those appointments on the DOI website. HELP!
Help Set this Captive Free
- Thread starter Capt2Ind
- Start date
- 977
It's pretty common for captive producers to go to wholesalers or brokerages to place risks they can't write for their captive company. I know we did in the captive agency I used to be with. The company's brokerage was really good, but we still had some MGA's we went to, and many of them have more than just E&S, as you probably already know.
You're not getting any appointments that way and can build a book on the side before you leave. There are some issues with doing that, not the least of which is technically you'd be violating your contract. Plus if your production with them drops noticeably they may start asking questions. And depending on who you ask, you may get told it's just not the right thing to do to build your own book while you're still under a contract. I know I wouldn't be comfortable doing that, and I wouldn't have done it myself. Personally, when I started my own agency I got all my ducks in a row before quitting so I'd have the least downtime possible, and filed agency license, pursued appointments, etc. the same day I quit.
If you do go that route, make sure you're using a wholesaler or brokerage who won't make you sign a non-compete or prevent you from getting your own appointments if you leave them. But really, I'd recommend terminating your contract before you start selling on your own. First off, you'll never find yourself questioning your integrity on down the road. Second, then you can pursue real appointments with carriers and not have to deal with no binding authority and more restrictive guidelines. You could always still go to the wholesalers or MGA's to supplement the appointments you do get, because you surely won't be able to get them all right away.
If you already know how to sell, have referral sources, etc., it shouldn't be too difficult to get cash flow started again. Just have some reserves built up to live on while you're getting back to good.
You're not getting any appointments that way and can build a book on the side before you leave. There are some issues with doing that, not the least of which is technically you'd be violating your contract. Plus if your production with them drops noticeably they may start asking questions. And depending on who you ask, you may get told it's just not the right thing to do to build your own book while you're still under a contract. I know I wouldn't be comfortable doing that, and I wouldn't have done it myself. Personally, when I started my own agency I got all my ducks in a row before quitting so I'd have the least downtime possible, and filed agency license, pursued appointments, etc. the same day I quit.
If you do go that route, make sure you're using a wholesaler or brokerage who won't make you sign a non-compete or prevent you from getting your own appointments if you leave them. But really, I'd recommend terminating your contract before you start selling on your own. First off, you'll never find yourself questioning your integrity on down the road. Second, then you can pursue real appointments with carriers and not have to deal with no binding authority and more restrictive guidelines. You could always still go to the wholesalers or MGA's to supplement the appointments you do get, because you surely won't be able to get them all right away.
If you already know how to sell, have referral sources, etc., it shouldn't be too difficult to get cash flow started again. Just have some reserves built up to live on while you're getting back to good.
- 1,581
Who's your captive? You better believe there's going to be a sprint to groups like SIAA etc & your local market may get quickly saturated w/ the exodus. You'll want to be ahead of the curve.
Appoint your wife, best friend or kid. Put together a plan of action to discreetly take back as much business as possible. You need to go rogue my friend...you need to go rogue.
You can't risk getting appointed yourself if you're captive.
Yes while just walking away & going IA may be too financially difficult, you may want to reconsider how ninja's operate my friend. Like I mentioned before, you need to think outside the box & be 2 steps ahead to capture all the business you'll soon be losing.
Myself & many agents from my previous captive acted before the carrier did, went black ops...and almost 4 years in...those who acted first survived. Those who didn't got stuck in hell.
You're at war w/ your captive. Consider yourself a European jew who ignored the warning signs while the Nazi party rose to power. Now is your last chance to get out before all is lost, otherwise you're done for.
Appoint your wife, best friend or kid. Put together a plan of action to discreetly take back as much business as possible. You need to go rogue my friend...you need to go rogue.
You can't risk getting appointed yourself if you're captive.
Yes while just walking away & going IA may be too financially difficult, you may want to reconsider how ninja's operate my friend. Like I mentioned before, you need to think outside the box & be 2 steps ahead to capture all the business you'll soon be losing.
Myself & many agents from my previous captive acted before the carrier did, went black ops...and almost 4 years in...those who acted first survived. Those who didn't got stuck in hell.
You're at war w/ your captive. Consider yourself a European jew who ignored the warning signs while the Nazi party rose to power. Now is your last chance to get out before all is lost, otherwise you're done for.
- 1,481
Ins 1822 can be wrong some times. He might have missed the mark here. Violating your contract could have serious repercussions groups should not endorse. Be wary of groups that help you cut corners to independence. They might be cutting other corners too. Getting a wife or friend thing might work as he eludes to, but he implies that they are going to help you systematically move the book.... Could be a violation of your contract.
Your Captive might have voided the contract be not offering you product lines you need to survive. I.e: A home owners market.
Ins And I agree on many things: BAIL! BAIL! BAIL NOW!
Rough Yes, ninja no. Stay above board so you don't need to be a ninja. Denpendng on who your captive is you wont need to go ninja.
Ins1822 who was your captive carrier? Amfam.
Indie Noise makes some great points too.
Your Captive might have voided the contract be not offering you product lines you need to survive. I.e: A home owners market.
Ins And I agree on many things: BAIL! BAIL! BAIL NOW!
Rough Yes, ninja no. Stay above board so you don't need to be a ninja. Denpendng on who your captive is you wont need to go ninja.
Ins1822 who was your captive carrier? Amfam.
Indie Noise makes some great points too.
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- 694
I agree IndieNoise and Shawnmwalker knowing you wont doubt your own integrity alone is enough not to sell before you leave. You would not want someone to do that to you! However, once you leave tho all is fair in love and war. Believe its not worth it, insurance is such a small industry you do not want a bad rep from clients or other agents. If the relationship of the accounts lies with you they will move over if you prep them correctly. Maybe start calling and getting buddy buddy and do a mid year consultation - for free of course 
Seriously the 1st day you go indy make the calls, do not wait.
I would do everything I can to place yourself in a good position to get a portion of the people forced to find other carriers. Honestly thats a huge opportunity to get new business since you are on/were the inside O_O thats the attitude I would have - your chance
Seriously the 1st day you go indy make the calls, do not wait.
I would do everything I can to place yourself in a good position to get a portion of the people forced to find other carriers. Honestly thats a huge opportunity to get new business since you are on/were the inside O_O thats the attitude I would have - your chance
