Need Help: I'm A New Independent Insur Agent in FL

[SRadley]

I worked for a captive agent for 3+ years and sold P&C at a high level.

I've now been at an independent agency for over a year and I've done well there too, also in P&C.

I'll be starting my own office very soon. My focus will be on home and auto insurance.

Aside from calling the marketing reps from the current carriers that I work with and trying to get direct appointments day 1, what is my backup plan to get carriers on my first day of business if I dont get them through the marketing reps that I currently deal with?

I've heard of clusters, MGAs etc. But if you join these groups, are you still the business owner or just part of a "group" (essentially a representative of the group/cluster) that can pull your appointments at will? If I dont go with a cluster/group/MGA then what is my other fallback option to get carriers day 1 of my agency? Is there a simple/easy company that allows independent agents to quote multiple carriers with but with lesser commisions than having a direct appt?

Also, which clusters/MGAs are the best ones in Florida?

Thanks in advance.

 

[marindependent]

Your [Main] plan should be to start wtih a cluster. And pepper in a few direct appointments where you can get them

You are in Florida? Not a Florida P&C guy - but my understanding is that a pretty hard market. What are other Fl agents telling you right now? Can you still get direct appts in the state right now?

 

[SRadley]

Your [Main] plan should be to start wtih a cluster. And pepper in a few direct appointments where you can get them

You are in Florida? Not a Florida P&C guy - but my understanding is that a pretty hard market. What are other Fl agents telling you right now? Can you still get direct appts in the state right now?

Thanks for the reply.
I believe some agents are getting direct appointments right now but perhaps not as many as pre-covid.
Any idea which clusters are the best here in Florida, for P&C?

 

[marindependent]

Since you are focused on personal lines home and auto insurance, it might better to first identify which carriers you are most interested in working with? Are there any in Florida that are writing home insurance that interest you?

 

[SRadley]

Seems like none of the major auto carriers available to independent brokers, are also offering home insurance.
I've been researching clusters all day today. I've seen Smart Choice, Eagle Agency and SIAA come up. No idea who is the best though. Long term, I want to have direct appointments and not be part of any cluster. I'll be calling these cluster groups tomorrow but would also like some opinions from people on this site. Any thoughts? Thanks.

 

[marindependent]

I would encourage you, as a personal lines agent, to see the long term value in Clusters.

The idea that an independent agency can have just three main insurers and no other options is fading fast. Frankly there is no need.

First some clusters give you direct access and much that goes with that.
Second, clusters allow you to free up time to sell and not search for new appointments.
Third, some of the better cluster options have referall programs whereby you pass on leads that you dont want to/or have to time to work on and still get paid a small commission on it.
Fourth there are some mga/cluster options out there that no minimum requirements.
Fifth the insurance market is changing pretty significantly with new tools and insurers entering almost daily.
Sixth, if I were in a hard to write home insurance market [woops I am in, CA] I would want as many avenue open as possible.

In my opinion a combination of direct access and a cluster and other MGAs, seem the best path forward.

 

[WolfpackAgent]

Do your research in clusters. I've heard wonderful things about PGI and SIAA. A lot may be determined by the "local" branch of the cluster. If I were going IA these are the first places I'd start . Just be sure the cluster gives you ownership and try to get binding authority. Be sure you know the "buyout" rules, the commission split, and whether you share in any bonus money.

 

[John Mulcahy]

I cant advise you on this subject but I was hoping for a little more information on the florida market and if you have had any success getting appointed. Im currently an insurance agent in Massachusetts but I know a lot of people in florida and have a lot of clients that are buying places in florida and asking me if I can write a policy for them. I'm back and forth on it and not sure if i would need a physical office. Any information would help, thanks

 

[SRadley]

thanks for the responses, everyone. very appreciated, really.

I've been researching and speaking to smart choice recently - it seems like they do not allow the agent to have binding authority......which is not ideal.

I havent come across PGI yet. i'll have to research them. Anyone here use PGI?

Anyone ever dealt with non-compete clauses when it comes to these clusters/MGAs? Apparently if you get direct appointments with carriers AFTER you sign up with smart choice, then you arent allowed to write business with the new direct carrier that you just obtained for 2 years! I'm going to confirm this with smart choice ASAP but that is apparently one of their practices. They otherwise seem like a solid option.

 

[Policy Monkey]

You could also look at FAIA. I'm not sure about the contract details, but they do offer market access, advertising support and some lead generation. TBH, they did not send us very many leads, but the ones they sent were good.