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How many Homeowners carriers should an agency be able to offer to be competitive throughout the entire state? We are in Florida and currently only have 2 Security First and Landmark.
How Many Carriers?
- Thread starter mariemerganser
- Start date
In my opinion any more than 3 main carriers is probably too many. Sure, you might not write everyone you quote but if you spread yourself beyond 3 you start sacrificing profit sharing, policy understanding, service issues. The nice thing about being independent is if you start having issues with one company you can certainly court an additional carrier.
Now you will probably need some more specialized carriers for such things as boats, motorcycles, ATVs, etc.
In general, 3.
2 that allow you to write the average house, assuming that is your target market. You need these to be competitive pricewise in the market.
You can get by with one, but if they have a rate increase, or underwriting change, you can be out in the cold for a while till you get someone else online.
The 3rd is for any sort of specialty dwelling, such as vacant property, not maintained properly, clients with high number of losses, or general risks that are not acceptable to your primary carriers.
I do not know the Florida market, can't even begin to tell you who is competitive and who isn't.
Dan
2 that allow you to write the average house, assuming that is your target market. You need these to be competitive pricewise in the market.
You can get by with one, but if they have a rate increase, or underwriting change, you can be out in the cold for a while till you get someone else online.
The 3rd is for any sort of specialty dwelling, such as vacant property, not maintained properly, clients with high number of losses, or general risks that are not acceptable to your primary carriers.
I do not know the Florida market, can't even begin to tell you who is competitive and who isn't.
Dan
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What happens if another carrier approaches you (that has competitive rates)), but at the same time you already have a couple carriers?
Thanks for the great tips. That's helpful.
Thanks for the great tips. That's helpful.
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I personally, don't care what the commission structure is or the profit sharing level is (with any of the carriers). If a client walks in the door I don't want him walking out because he found a better product or a better price down the road.
I will forego the profit sharing to obtain the client, every time. We may not get the big bonus at the end of the year, but we will make up for it with referrals from a new client.
Referrals are the life blood of an agency. More products more clients - more clients more referrals - more referrals more money.
Not a popular opinion on this board (as far as the carriers go)
I will forego the profit sharing to obtain the client, every time. We may not get the big bonus at the end of the year, but we will make up for it with referrals from a new client.
Referrals are the life blood of an agency. More products more clients - more clients more referrals - more referrals more money.
Not a popular opinion on this board (as far as the carriers go)
Warnerins, may be not a popular opinion but a good strategy IMO in this market. Contracts have never been easier to get. After 20+yrs in the business I can tell you when the market turns you will lose the carriers you aren't feeding or are feeding the crap business to. Fortunately you will have others on board to pick up the slack. We contracted with Farmers, Travelers, Hartford, Encompass, Metlife in the last couple years with no production requirements(they approached us). We write very little business with these carriers but we will shop a client for price with them and then advise the client to go with another carrier for various reasons (service,etc) Is a real loyalty builder w/clients.
FYI we use primarily 3 homeowners markets for 97% of our new business....but can write with 11
FYI we use primarily 3 homeowners markets for 97% of our new business....but can write with 11
Get as many carriers as you need to write every homeowners policy that comes in the door. I have one of each: cheapest, best, guaranteed issue, easiest to work with, package policy, and specialty carrier.
My best carrier gets the lions share of the business, and we get a decent contingency from them, but I hate letting any quote get away.
My best carrier gets the lions share of the business, and we get a decent contingency from them, but I hate letting any quote get away.
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Amen, saieddie
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Anyone know the most competitive Homeowners carriers in California? I'm guessing that between Hartford, Travellers, Foremost that should be enough, however I worked for a captive Farmers Agent for 1 year before planning my own agency so I'm not too familiar with what else is out there.
tospears
Expert
- 40
I would say no more than 5 would be great. I'm in SC. Currently I am able to write HO through Travelers, Montgomery, Safeco, Hartford, and another 10 or so through Appalachian Underwriters. It would be a gross waste of time to quote all these companies. In most cases Travelers or Montgomery is cheaper (9/10). Safeco will write properties with a few more claims than average. Also, Foremost specializes in niche markets (motor homes, mobile homes, snowmobiles, etc...). Realistically you should only need 4: Two that fit run of the mill homes and 2-3 for (most) everything outside of the box.
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