Insurance Noodle, NIA, Smartchoice, Etc

[CR in STL]

I am investigating the use of these companies, are your currently using them or have you in the past? How was or is your experience

Being new I am not able to get direct appointments so I would like to know if there is any reason any of these would negatively effect my business.

I also have a lot of contacts within the construction and homebuilding industry those of you who have/had done business with the above are they able to write policies for that industry

If anyone has any other companies or suggestions I would appreciate the information. If it helps I am in Missouri and in the Metro St. Louis area

 

[mvanhorn]

You might try CombinedGroup.com They are in 30+ states and have good markets.

 

[Chris01]

I am currently investigating MGA's myself (In Texas). You really need to contact each of the companies and have prepared questions for each of them or you'll be a really unhappy agent later on. For example, I see a lot of agents on this forum think that SmartChoice is a good option but I don't and here is why. First of all they only do personal lines and they don't even give you access to all the companies such as The Hartford. In fact a few of the companies they give you access to you could probably get on your own. You have to have a minimum of 2 years experience before they'll take you on.

The real catch is what happens when you eventually want to go direct with one of the carriers that they give you access to. They have a two year non-compete clause which means that when you leave you can't write business with any of the carriers that you were given access to while you were with SmartChoice. Theres more but I'll stop with that. The above agent metioned The Combined Group and I'm checking them out as well but I think they only do commercial but they do give you your own direct appointment which means you'll have binding authority. Having binding authority isn't as important in commercial insurance as it is in personal lines. Most of the time you'll hopefully have a few weeks to quote your commercial prespects but you may only have one day with some of your personal lines customers.

The more important things to consider when looking for an MGA:

Binding Authority for Personal Lines
Standard Carriers such as The Hartford, SafeCo, Travelers
Turn around time on commercial quotes
Commissions (At least 10% new 10% Renewals)
Any fees other than the reduced commissions
Can you cut ties cleanly or will they withhold renewals?
Is there a non-compete (this is huge and you don't want it)

Search your area and don't sign up until you feel very comfortable with the MGA. Maybe even call a few references.

Good Luck

 

[Gulliver]

Chris,

Have you looked at TWFG in TX. The Woodland Financial Group. There are many agents who have had good results starting out with TWFG.

Gulliver

 

[CR in STL]

Thanks for the info. Anyone had any experience with Nlink?

 

[vivian_agent]

Chris,

Have you looked at TWFG in TX. The Woodland Financial Group. There are many agents who have had good results starting out with TWFG.

Gulliver

Hi Chris,
Can you tell me more about TWFG? I'm in Houston and I just got my P&C license.
Thanks,
Vivian

 

[redsquash]

"I see a lot of agents on this forum think that SmartChoice is a good option but I don't and here is why. First of all they only do personal lines and they don't even give you access to all the companies such as The Hartford. In fact a few of the companies they give you access to you could probably get on your own. You have to have a minimum of 2 years experience before they'll take you on"

On SmartChoice website, they say you can write Commercial business as well. They give you Travellers, if not Hartford. By the way, I like the fact that they dont give Hartford, because Hartford will not talk to a new agent. And if you establish a book of business with SmartChoice for two-three years, you can rollover it to Hartford. The non compete agreement applies only to the carriers they get you appointed.

Bottom line is, its hard for any new agent, and you will have to sacrifice one way or the other, until you establish a book of business.

 

[xrac]

I am currently investigating MGA's myself (In Texas). You really need to contact each of the companies and have prepared questions for each of them or you'll be a really unhappy agent later on. For example, I see a lot of agents on this forum think that SmartChoice is a good option but I don't and here is why. First of all they only do personal lines and they don't even give you access to all the companies such as The Hartford. In fact a few of the companies they give you access to you could probably get on your own. You have to have a minimum of 2 years experience before they'll take you on.

The real catch is what happens when you eventually want to go direct with one of the carriers that they give you access to. They have a two year non-compete clause which means that when you leave you can't write business with any of the carriers that you were given access to while you were with SmartChoice. Theres more but I'll stop with that. The above agent metioned The Combined Group and I'm checking them out as well but I think they only do commercial but they do give you your own direct appointment which means you'll have binding authority. Having binding authority isn't as important in commercial insurance as it is in personal lines. Most of the time you'll hopefully have a few weeks to quote your commercial prespects but you may only have one day with some of your personal lines customers.

The more important things to consider when looking for an MGA:

Binding Authority for Personal Lines
Standard Carriers such as The Hartford, SafeCo, Travelers
Turn around time on commercial quotes
Commissions (At least 10% new 10% Renewals)
Any fees other than the reduced commissions
Can you cut ties cleanly or will they withhold renewals?
Is there a non-compete (this is huge and you don't want it)

Search your area and don't sign up until you feel very comfortable with the MGA. Maybe even call a few references.

Good Luck

Chris,

Since you are in Texas you may find this of interest. I have no affiliation with these people but received this by email and throught it might be of interest.

Texas Insurance Agency was established by 3 former Allstate agents who saw the vision that customers wanted greater choice than what Allstate had to offer. Texas Insurance Agency has helped many former Allstate agents with questions related to starting a independent agency and is happy to help you. Like you, we felt trapped and isolated thus, we made the separation and the rest is history. If we can be of any assistance or provide you with moral support, please call us at 281-398-1010 or by web at OpenDNS. com or ktexins@sbcglobal. net Remember there is life after Allstate!
​

 

[pecosins]

I am investigating the use of these companies, are your currently using them or have you in the past? How was or is your experience

Being new I am not able to get direct appointments so I would like to know if there is any reason any of these would negatively effect my business.

I also have a lot of contacts within the construction and homebuilding industry those of you who have/had done business with the above are they able to write policies for that industry

If anyone has any other companies or suggestions I would appreciate the information. If it helps I am in Missouri and in the Metro St. Louis area

Preferred carriers won't write most of contractors and homebuilders anyway. You have to go with MGA.

 

[Guest]

Preferred carriers won't write most of contractors and homebuilders anyway. You have to go with MGA.

THX for bringing up a 2 year old thread!

go get a life instead of scanning age old threads!