I work with a fairly well established IA and we're looking to potentially add another carrier to our portfolio. Right now we have 6 solid national brands that we're directly appointed with but we've been thinking we might want to explore the idea of a smaller, regional carrier. What are the pros/cons of working with a regional carrier compared to a national brand? Does anyone have any suggestions for regionals that are competitive with good claim service? We're primarily personal lines and currently sell in IL, MO, KS, AR, OK, NE and IA. Thanks for any input!
Regional P/C Carriers?
- Thread starter csmith2
- Start date
- 1,581
Pros - better compensation, better pricing, better price stability over time, better relationships w/ underwriting.
Cons - Lack of brand recognition (which isn't a big deal.)
Regionals are the way to go.
Cons - Lack of brand recognition (which isn't a big deal.)
Regionals are the way to go.
- 977
They are interesting creatures. They are prone to have underwriting guidelines that are both broader and more narrow than national carriers. Certain factors that would be a hard decline with the big boys might be acceptable with a regional carrier. Of course, the regional also ought to know their market and you'll find that you will be targeting a smaller demographic as well. If you hit that sweet spot, they'll be hard to touch.
Technology will probably be lacking. But you'll also likely get better commissions. And they probably won't be competing with you by operating a direct sales arm.
Technology will probably be lacking. But you'll also likely get better commissions. And they probably won't be competing with you by operating a direct sales arm.
Absolutely. Strong 'Regionals' should be seriously considered and evaluated. Check-out service related feedback from their current agents.
Also, on the websites of some of the larger agencies in the States of your interest, find the recurring names of regional carriers. Check them out based on the specific markets needed within your areas of interest.
Many successful P&C agencies have several regionals on-board with which they do a large percentage of their business.
