My partner and I have built our agency from scratch 20 years ago? We worked so hard to be where we are today, appointed with all the major companies such as Mercury, Safeco, Allied, Travelers, etc.. you name it we have it all and we are small business owner. If you're in the business, you should know how hard it is to earn appointment from these companies and you have to be on top of everything to keep your appointment. In today's world, too many agencies with direct appointment are using the MULTI-LEVEL MARKETING/PYRAMID RECRUITING SCHEME strategy to recruit new start-up agencies to write business on their behalf. All these start-up agencies are using this "affiliation program" loophole to lure their clients into their business by claiming that they are representing all these major companies directly. We have a walk-in recently who was insured with Safeco Insurance. He bought his auto policy from Joe Smith agency but his declaration page shows John Doe agency as the agent of record. Insured complained of the situation and confirmed that Joe Smith Agency never disclosed that he works under John Doe agency. Insured has filed a complaint to the DOI and all the insurance companies that Joe Smith agency claims to represent and I believe she is seeking an attorney for the lawsuit. She is an elderly by the way. Have any of you came across this situation? Is this a good thing for these corporate agencies and start-up agencies to cut the line and put both the consumers and the insurance companies at risk for unethical business practice? Do you know if this is the new norm? Do you think that insurance companies are looking the other way since more agents equals more business? The weird thing is I know two well-known big brokerage agencies in my community just lost their appointment with Mercury last year. So my question is if Mercury is taking away appointment from mom and pop agencies who have been in the business for years and they allow inexperience, no direct appointment start up agencies to represent them and use their company name to brand their agency business? This is beyond belief!
I wish to hear feedback, suggestion, input from all sides. One thing for sure is that our business has been affected because this type of agencies are everywhere.
I wish to hear feedback, suggestion, input from all sides. One thing for sure is that our business has been affected because this type of agencies are everywhere.
