Question for Erie Agents

[CaptiveGuy]

First of all, I would like to thank this forum for the helpful information and some good humor at times.

I met with the District Manager for Erie Insurance in my area and was approved to apply to start as a scratch agent. I have filled out the cash flow work sheet and the year 1-5 production projections. They are telling me it may take 6 months or more to get appointed, is this typical with Erie? It's not too big of a deal but I am excited to open my own agency and leave my captive carrier!

This forum has been key in comparing wholesalers and agency management software as well. I think I am going to use Iroquois to get access to Safeco and Encompass and get appointed directly with Progressive for the substandard market. Maybe AMS360 or Xanatek for management software.

I know it will be a tough road but I sell over $400k a year in personal lines now with my captive so I should be able to sell more with additional carriers in my arsenal.

 

[CaptiveGuy]

Anyone have experience with how Erie works?

 

[1manshow]

Yep, I'm an Erie guy since 1986. They are slow and thorough in the appointment process but very good when you finally make the cut. Welcome aboard...someday soon

 

[CaptiveGuy]

Ha thanks, I'm finding that other companies don't even want to appoint me knowing that Erie is a possibility. Smart Choice and Iroquios both said that Travelers was hesitant to appoint if Erie was appointing me. Sadly the reps said that the other companies they have access to (Safeco, Encompass, Met Life) weren't competitive in MD!

Oh well we'll see what happens.

 

[b61mack]

don't ask don't tell.... even progressive may not appoint you, if you tell them you, maybe appt with erie... i inquired with progressive and they must have asked me 10 times in 10 different ways.. are you connected, associated, next to another, related to another insurance carrier... i think they don't want to appt somone that sell's for the big captives..until erie appts you you are not appt'ed.. look out for yourself... 6 months is a long time to wait...
- - - - - - - - - - - - - - - - - -
i would start out as an independent.. if erie appts you fine . but i would not sit and wait.... tell erie their is a spot outside to hang their sign,

 

[CaptiveGuy]

don't ask don't tell.... even progressive may not appoint you, if you tell them you, maybe appt with erie... i inquired with progressive and they must have asked me 10 times in 10 different ways.. are you connected, associated, next to another, related to another insurance carrier... i think they don't want to appt somone that sell's for the big captives..until erie appts you you are not appt'ed.. look out for yourself... 6 months is a long time to wait...
- - - - - - - - - - - - - - - - - -
i would start out as an independent.. if erie appts you fine . but i would not sit and wait.... tell erie their is a spot outside to hang their sign,

Thanks for the advice, you are right and another agent who is a friend of mine told me the same. Maybe I'll contact progressive first after I finalize my E&O then see who I can get through a wholesaler.

I know Erie wants to be the lead carrier in the agencies they appoint but if I'm doing business I should be able to get them down the road anyways. I don't know why it takes 6 months to run a background check etc. We already discussed my past production and business plan . The district sales managers said I'm a great fit but its up to the home office.

I'm ready to get started I've been selling my soul for 3 years now as a captive agent and I have been researching going indy for months.

 

[1manshow]

My advice...don't go charging after other contracts until you've gotten the Erie gig sewed up. Especially if you are hoping for a "special agent" contract with increased commissions.

Erie does want first shot at new business but they certainly aren't foolish enough to believe you won't get other companies to help your hit ratio on business they can't be competitive on.
Progressive/substandard contracts are easy to get in most areas so I wouldn't give that another thought. My advice would be to find out what Erie is hungry for and competitive on in commercial lines in your area and start a strategy of marketing to those targets.

 

[CaptiveGuy]

I'll call the District Manager and ask if getting other preferred carrier appointments would limit the accelerated commissions.

25% first year, 20% second and 17% third year payouts on personal lines may be worth the wait. The standard auto commission is going up from 10 to 15% in 2011 as well.

Happy New Year and thanks for the advice.

 

[Insurance-Guy]

My advice...don't go charging after other contracts until you've gotten the Erie gig sewed up. Especially if you are hoping for a "special agent" contract with increased commissions.

Erie does want first shot at new business but they certainly aren't foolish enough to believe you won't get other companies to help your hit ratio on business they can't be competitive on.
Progressive/substandard contracts are easy to get in most areas so I wouldn't give that another thought. My advice would be to find out what Erie is hungry for and competitive on in commercial lines in your area and start a strategy of marketing to those targets.

This is excellent advice!

I am actually to the point now where I am company heavy. I have quite a few companies and it starts getting hard to please all of them. They all want a certain amount of business and growth. Every time you hear from the reps they want to talk about doing a book rollover… The best advice I can give you GET your main company and build your book with them. The easiest way to do that is to quote them every time. It gets hard to do when you have 15 companies…hell just remembering all of the companies guidelines gets confusing. I try to quote all qualified business with my big carriers that I have…Allstate, Travelers, PNI, Encompass, etc. now even the companies that used to market non standard-standard are sharpening their pencil and are becoming super competitive on the preferred and ultra preferred business which is OK…but they are pricing them selves out on the non standard standard market business They all want the same piece of the pie. Companies like Erie, which I am not appointed with by the way…are the contracts you want...they don't give them to every single agent…unlike Progressive, Safeco and some of the other companies everyone with a license and E and O can get appointed with. Some of the companies are necessary like Progressive…for RV’s, boats, certain auto policies and commercial autos they are almost needed but when it comes to the Preferred stuff who are you going to put it with Erie or Progressive…

 

[JFBAgent]

I've got a question...I know an Erie agent and they have annual bonuses they pay out based on a number of factors. Anybody able to tell me more?