Is Commercial Insurance Promulgated ?

[TonyC]

Hi friends,

Was reading a thread a few posts down where the agent was saying that carries can cut out the insurance agent.

I thought that "all insurance was promulgated" (meaning...that all quotes are the same no matter where they come from)?

For example, when an auto insurance customer wants a quote from Geico, they will get the same quote from an Independent agent as they would if they went directly to Geico.

Can a commercial ins.company quote a lower rate than that offered by agents?

Am i right or wrong?

 

[nyc2phi]

It is not true that they are the same.

Progressive can offer better rates if the insured goes directly to Progressive opposed to going through the agent. At least that is what i've heard from other memebers on the forum.

I am not sure how this would work with commercial. Commerical is complicated and service oriented policy. Carriers pay their agents commission to handle that service work. If they cut the agent out, they would just have to pay someone else, right?

 

[tarobhap]

I was the one whom posted last week.

Im wondering if there is a company created with their own capitol that provides insurance coverage directly.

Like an MGA turned Insurance Company or something like it?

 

[VolAgent]

It is not true that they are the same.

Progressive can offer better rates if the insured goes directly to Progressive opposed to going through the agent. At least that is what i've heard from other memebers on the forum.

I am not sure how this would work with commercial. Commerical is complicated and service oriented policy. Carriers pay their agents commission to handle that service work. If they cut the agent out, they would just have to pay someone else, right?

I believe what Progressive does is use two separate companies. One to handle agent policies and a second to handle direct. So both operate under the Progressive name, but the policy is carried by different companies and thus can have different rates.

 

[TonyC]

It is not true that they are the same.

Progressive can offer better rates if the insured goes directly to Progressive opposed to going through the agent. At least that is what i've heard from other memebers on the forum.

I am not sure how this would work with commercial. Commerical is complicated and service oriented policy. Carriers pay their agents commission to handle that service work. If they cut the agent out, they would just have to pay someone else, right?

Well that sucks !

So the company does not protect the agent against shoppers. Bastards will roll on you faster than a 20 dollar whore.

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Amazing....now how do you explain to your customer you ratrs are higher.... and to serve them better.... next year they should go online ?

 

[VolAgent]

Well that sucks !

So the company does not protect the agent against shoppers. Bastards will roll on you faster than a 20 dollar whore.

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Amazing....now how do you explain to your customer you ratrs are higher.... and to serve them better.... next year they should go online ?

Sounds like a good reason not to use Progressive for personal lines clients....

 

[benwrigh]

Progressive direct, IN at least, can give a sign on bonus. Its around $50 for the first term.

That gives them a nearly $10 monthly advantage for those shopping and not paying attention.

 

[AZDave]

Sounds like a good reason not to use Progressive for personal lines clients....

Add Hartford AARP to the list. I have lost current Hartford insureds that qualify for the AARP program to Hartford direct....I wouldn't doubt that the call center rep's get a bonus for taking business from the agents.

 

[insurance1822]

hey if a client is price shopping that hard & you end up writing them....what do you think is gonna happen in a year again anyway? if prog is your best market they're most likely garbage business anyway....

 

[benwrigh]

hey if a client is price shopping that hard & you end up writing them....what do you think is gonna happen in a year again anyway? if prog is your best market they're most likely garbage business anyway....

Many times we just use Progressive as a stepping stone for those with a accident/violation that will be nonrated soon or need prior insurance before they can go standard.