Personal Lines Carriers, When Is Enough Enough ?
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Re: PErsonal Lines Carriers, when is Enough Enough?
I have like 30, havent counted lately and added 3 more last week...
damnit, your gonna make me go count later!
The real question, is how many do I actually use?
I have like 30, havent counted lately and added 3 more last week...
damnit, your gonna make me go count later!
The real question, is how many do I actually use?
- 1,076
Re: PErsonal Lines Carriers, when is Enough Enough?
It is the old 80/20... we write 80% of our business with 4 carriers and do a bunch of one off deals with a dozen others. The problem is that you never know when a market is going to heat up or when one of your top markets is going to pull back. I would never want to be too tied into one company but I don't believe in chasing every new market and scattering business all over the place either.
It is the old 80/20... we write 80% of our business with 4 carriers and do a bunch of one off deals with a dozen others. The problem is that you never know when a market is going to heat up or when one of your top markets is going to pull back. I would never want to be too tied into one company but I don't believe in chasing every new market and scattering business all over the place either.
- 160
Re: PErsonal Lines Carriers, when is Enough Enough?
When I had my agency, I used 5 personal lines markers the the most. If a risk does not fit in any of the 4 or 5 markets, it's probably not a good risk to have. Also those that don't fit are the far and few between, does an agent really want to spend 1 hour extra everytime they get that difficult client, then have an E&O claim because they didn't understand how that carriers coverages work? I like to know the markets I have and not play amatuer on the markets I don't have. Let alone these accounts will be a tax to your agency in a number of different ways. I should also say, have at least one market that targets the high value and high networth clients, more if your agency is in such demographic area.
When I had my agency, I used 5 personal lines markers the the most. If a risk does not fit in any of the 4 or 5 markets, it's probably not a good risk to have. Also those that don't fit are the far and few between, does an agent really want to spend 1 hour extra everytime they get that difficult client, then have an E&O claim because they didn't understand how that carriers coverages work? I like to know the markets I have and not play amatuer on the markets I don't have. Let alone these accounts will be a tax to your agency in a number of different ways. I should also say, have at least one market that targets the high value and high networth clients, more if your agency is in such demographic area.
Interesting question, lots of variables to the answer.
I think we all have a couple of carriers that we write the majority of our business through, keeps it simpler AND it means we focus our agency on a particular style client.
I do run into frequent things where my contracted carriers are not the best fit, but I want to take care of my client. I use several General Agents to place that business, rarely sending them anywhere else, even though I might not write the business directly.
Dan
I think we all have a couple of carriers that we write the majority of our business through, keeps it simpler AND it means we focus our agency on a particular style client.
I do run into frequent things where my contracted carriers are not the best fit, but I want to take care of my client. I use several General Agents to place that business, rarely sending them anywhere else, even though I might not write the business directly.
Dan
- 1,473
The fewer the better I think 5 preferred and a few non standard are a good mix.
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Re: PErsonal Lines Carriers, when is Enough Enough?
Only 5 carriers? and i know why you arent an agent anymore....
I have more than 5 for preferred, more than 5 for standard, more than 5 for sub-standard.
people want OPTIONS, I present 3 quotes to each client, let them decide, some want simply the cheapest no matter what, some want the cheapest with the biggest name they know or have heard of, some only want some they have heard of.
Quite often, the non-named brands are cheaper, but it scares people because they havent ever heard of them.
I have carriers that ONLY write auto, I have companies that only write Homes, I bet less than 30% of the time I write the auto and home with the same carrier.
OPTIONS, OPTIONS, OPTIONS
I let the people decide.
Only 5 carriers? and i know why you arent an agent anymore....
I have more than 5 for preferred, more than 5 for standard, more than 5 for sub-standard.
people want OPTIONS, I present 3 quotes to each client, let them decide, some want simply the cheapest no matter what, some want the cheapest with the biggest name they know or have heard of, some only want some they have heard of.
Quite often, the non-named brands are cheaper, but it scares people because they havent ever heard of them.
I have carriers that ONLY write auto, I have companies that only write Homes, I bet less than 30% of the time I write the auto and home with the same carrier.
OPTIONS, OPTIONS, OPTIONS
I let the people decide.
- 1,473
That's a good mix. Also I like to work with companies that I am familiar with claim service and claim paying.
- 414
You also have to consider your loss ratio bonuses too. If you are writing with 20 companies and not focusing on 2-3 of your preferred companies you may be giving up some substantial income.
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