P and C Masters: Really Own Your Biz?

[infoe]

When he's not chewing out newbies, he's got good stuff!

Being a captive guy wanting to go INDY all those things above seem extremely important to me. Price will get you the customer but great service will help them stay. Captive companies know this, why they stress it so much.

If i did'nt have that option with a cluster and would have to do business as a middle man for every little thing I would'nt be interested.

 

[HealthGuy]

Red, Captive Guy - all great points and counter points. Very helpful and informative...Maybe in theory like Captive Guy says you could run an agency without binding authority, but for how long and I do believe it would get annoying. I don't know of one agency that has used the Noodle or Superior Access for years on end because it does get frustrating. Even with what improvements Superior says they are doing as of late, I'm not sure they do what they say....Big question: IF YOU CANT BIND, CAN YOU CALL THE COMPANIES DIRECT WITH SERVICE QUESTIONS OR CHANGES OR WOULD YOU HAVE TO CALL SUPERIOR ACCESS OR THE NOODLE?

 

[CaptiveGuy]

"Big question: IF YOU CANT BIND, CAN YOU CALL THE COMPANIES DIRECT WITH SERVICE QUESTIONS OR CHANGES OR WOULD YOU HAVE TO CALL SUPERIOR ACCESS OR THE NOODLE?"

You can call the carrier's service line and get a change done ASAP. Superior can process coverage changes, name changes, address changes etc. same day on the dashboard. But if the client is at the dealership adding a new car they can call the 800# or you can call.

Superior can bind a personal lines policy in 24 hours not bad it's annoying to have to call the carrier to get instant changes that's where I can see having binding authority as an advantage.

One other thing to think about is with Superior, Smart Choice, Noodle etc. you are giving up profit share/loss ratio/contingency bonuses. So if you are doing p&c full time and can put up decent premium, I'd suggest against signing up with with a cluster with a non-compete. Use Superior and the like to round out the carriers you have.

Red Blooded is correct though, many big carriers won't appoint you in some areas without the cluster. I signed on with a regional carrier that is more competitive than Travelers, Safeco, etc. in my area so it works out.

Health Guy I'll call you tomorrow.

 

[HealthGuy]

Thanks Captive... Anybody know of a cluster that gives you binding authority with no noncompete? I cant imagine there is one.

 

[djs]

I'm getting lost in terminology.
What are you afraid of with a non-compete? SIAA allows you to have other appointments, so effectively, they don't have a non-compete as far as business placement goes. I think Agent Secure and Smart Choice allow outside appointments as well, so they don't have a non-compete.

If you are talking about dropping the clusters carrier appointment and getting your own to write the same business with the same carrier, but cut out their commission, then you are right, I can't imagine there is one that would allow that.

Dan

 

[Sales71]

Health guy. In think all Your point are valid u have to pick what works for your need. Just pick top 2 narrow your choice and just go with one. I can take month, years analyzing groups and the end of day I need to pick one and go with it and make money. There has to be a win win for both side. I have decided that SIAA is my top choice I will go with them in 2012. I like what I hear from my rep very honest and straight shooter. Any group has fees. Red is always right (:-

 

[HealthGuy]

Dan: My fear with a non compete is that in effect, they then own you...Looks like if you want to bind policies however, there is no way around it regardless of the group...And Sales 71, yea - I'm close to making a decision, and all this input helps, would appreciate anyone else chiming in. All the advice helps.

 

[InsuranceGuynTX]

I have recently transitioned from captive to independent. I have found many MGAs willing to work with me here in Texas.

 

[Sales71]

I have recently transitioned from captive to independent. I have found many MGAs willing to work with me here in Texas.

What company were u captive with. Did u have any broker buiness that u took with you?

 

[bill777]

Red: Havent signed with anybody yet, just looking for help not a scolding. And no, the bonuses dont all the time outweigh the entrance fee...I spoke with a guy with SIAA who told me he earned in 2010 about 275K in raw commissions with SIAA, paid back to them in fees about 25K in 2010 and only earned 13K in bonuses, so his net payment to SIAA was still about 11K (not including their 10K buy in which is a cost, over time). If he would have been with Smart Choice, he could have earned the 275K in commissions, capped out the payback to Smart Choice at 15K and been done with it, oweing Smart Choice nothing if he wants to sell (the 30% and more SIAA requires out the back door back to them if you sell)...So whos contract blows? SIAA or Smart Choice? More opinions please, not lectures.

i tried to sign up with smartchoice but they require some experience and book of business to get you appointments with travelers or safeco, then i read on this thread it's the same with siaa only siaa won't take at all new agents.
my question is if you already have experience and a book of business what's the point of going through them???