This is the worst market except for 1975 and 1976. The P & C companies lost more money those two years than they had made in the past 20 years. I don't know of any company appointing agents now. One marketing rep for one our companies said Travelers was going to cancel one third of their agents next year. So, even if you are an established agency you may still have a problem with markets next year. We are quoting more new business than ever but we don't get many. For example, I have dozens of dec pages from State Farm and Auto Owners than I have ever had. I can compete on the auto but I can't get close to State Farm and Auto Owners on the homeowner. Our commissions are holding steady but they aren't increasing. I got a contract with Travelers and Nationwide through Smart Choice but my progressive contract is direct with them and I have other contracts direct with carriers. But, even being with Smart Choice you aren't safe from termination and production requirements. There is no loyalty from insurance companies today. They will cut your throat in a heartbeat. It's not a good time to be an independent agent.
 
This is the worst market except for 1975 and 1976. The P & C companies lost more money those two years than they had made in the past 20 years. I don't know of any company appointing agents now. One marketing rep for one our companies said Travelers was going to cancel one third of their agents next year. So, even if you are an established agency you may still have a problem with markets next year. We are quoting more new business than ever but we don't get many. For example, I have dozens of dec pages from State Farm and Auto Owners than I have ever had. I can compete on the auto but I can't get close to State Farm and Auto Owners on the homeowner. Our commissions are holding steady but they aren't increasing. I got a contract with Travelers and Nationwide through Smart Choice but my progressive contract is direct with them and I have other contracts direct with carriers. But, even being with Smart Choice you aren't safe from termination and production requirements. There is no loyalty from insurance companies today. They will cut your throat in a heartbeat. It's not a good time to be an independent agent.
Well this is good information, do you think it would be better to be a sub-producer for a large MGA vs IA or just sit tight where I'm at? The sub-producer contract I've looked at has a 90/10 split with no minimum production requirements. They have the highest commission tiers and bonuses as well with all the major PL carriers. No exit fees and I own my book.
 
Ok, I'll expand. This is probably the worst insurance market anyone alive has ever seen. Few carriers are making new appointments, but many are non renewing and pulling out of the market.

Each state is different, so do your homework, but my statement is accurate as to the broad U.S. market. Specifically Ca, Ny, and Fl are seeing the worst of it.

With no exaggeration, this is the absolute worst time to be going off on your own. If at all possible wait until things settle down. It looks like we've hit bottom - but who knows when we'll pull out of this tough market.

Basically - what @marindependent said.

Hearing that M&A brokers are bringing several potential regional carriers that are considering selling out because of the hard market, lack of reinsurance market, loss & expense ratios at record levels. Going to be interesting how rating agencies like AM best handle upcoming rating reviews & outlooks of the individual carriers & overall segment of the industry.
 
Well this is good information, do you think it would be better to be a sub-producer for a large MGA vs IA or just sit tight where I'm at? The sub-producer contract I've looked at has a 90/10 split with no minimum production requirements. They have the highest commission tiers and bonuses as well with all the major PL carriers. No exit fees and I own my book.
Are you sure about the 90/10 split? Is that both new & renewals? Would be shocked if an MGA or IA would be giving 90% of both new & renewal unless they are not providing any service, etc. no way they could cover a fraction of their overhead at only 10% of renewal unless they provide no customer service, etc
 
Are you sure about the 90/10 split? Is that both new & renewals? Would be shocked if an MGA or IA would be giving 90% of both new & renewal unless they are not providing any service, etc. no way they could cover a fraction of their overhead at only 10% of renewal unless they provide no customer service, etc
Positive on splits both new and renewal and no I do all the customer service work. Keep in mind I have a book and 12 years experience at this point so not a newbie.
 
Positive on splits both new and renewal and no I do all the customer service work. Keep in mind I have a book and 12 years experience at this point so not a newbie.
that makes more sense if you are responsible for all the customer service & overhead. they are basically just acting as an entity above you & getting overrides on your production. Seems a lot different than merely being a sub producer or solicitor like I was thinking you were
 

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