SIAA Alliance for Independent Insurance Agents

[djs]

If consumers are offered the choice, deal with an independent agent with a direct appointment by an insurer or deal with an independent agent with a SIAA-type arrangement, they would or should consider the former without exception. It is little more than a broker type relationship and one insurance consumers would be wise to avoid.

This shows the problems companies like SIAA face. An SIAA appointment is a direct appointment. In fact, the carrier even pays the agent, not SIAA.

The consumer would have no knowledge of any of this and simply doesn't care.

Now, an agent that has binding authority can definitely serve a client better than one that does not. But with SIAA, you get binding authority with carriers. Now, if you are talking an arrangement like Superior Access, its a different story. Agents normally use companies like Noodle and Superior Access to fill in for markets they don't have appointments with.

Dan

 

[FLInsa]

Apparently experiences may vary. Mine was not good. After 2 years in business we had written over 3 million in new business premium and less than 200k was through an appointment that we got from SIAA. Of that 200k, 150k was with travelers and we were told travelers had a 250k first year volume commitment (by our SIAA master agent) and that we couldn't get that on out own. Wrong... We met a travelers rep at an industry event and they told us the first year commitment was 35k. They painted us a lot of pretty pictures and told us about green meadows but they weren't real. This is especially true if you are in a heavily surplus line state like those on the gulf coast. They also claim to offer support. Wrong... My agency had a larger more qualified support staff than my master agent had. A few times I had accounts that I was having trouble placing ad sent to my master agent to see if they could place it for me. It was like a black hole. No one would ever get back to me and when I would call to follow up no one knew who was handling it. Probably because no one was! In my experience they over promise and under deliver. It's also heavily inexperienced agents for the most part. You'll get a smattering of ex captives, ex life and health guys, life and health guys who can't make it selling only life and health, personal lines only shops and bucket shops content to sell progressive auto and mobile home policies all day. Again, looking at some of these responses apparently experience varies depending on master agency but the agents it was not top flight insurance professionals at my master agency.

Sent from my iPhone using InsForums

Wow, 3 million in premium and only 200k written through the SIAA carriers? I am not doubting it but chances are then you probably have a niche market and are using carriers outside of SIAA to target that niche correct? Not unusual to see agencies that have say a 5 million BOB but 80% of the BOB comes from the niche that they specialize in whatever it may be (hotels, contractors, etc).

Isn't it true that while you do no have direct appointments, you are earinig about 6-8% on commissions until that point?

Obviously I can't disclose what the commission breakdown is due to the confidentiality agreement with SIAA but I guess I can say it is way more than that (especially including the bonuses as another fellow agent posted a few threads ago).

It's true. I was appointed with travelers and America First through my master agency and they were shown as the producer on policies.

Sent from my iPhone using InsForums

----------

If you have a direct appointment then you aren't using the master agents appointment.

Sent from my iPhone using InsForums

Correct, until you have a DIRECT appointment with the carriers your name will not show up on the policy that goes to the client. But two years and 802 clients later, my name not showing up on the policies has not caused a single issue yet. Plus, on the very few occasions that a client has called the MA (whose name appear on the policies) directly, the MA has always promptly referred the client back to my agency so no problem at all.

The point I feel should be considered in this discussion is what is the best alternative for the insurance buyer?

I'm sure many insurance brokers express different levels of satisfaction with the SIAA program or others like it. These relationships generate revenue they may not otherwise generate, SIAA retains their share of the commission and the insurers have access to business they might not otherwise be offered.

The only one left out of this discussion is the insurance consumer. More often than not, they are the ones poorly served. Shouldn't the insurance consumer be the primary concern? They are the ones paying the bills.

Insurance consumers look to independent agents as an alternative to dealing with direct writers or captive agents. They expect the independent agent will: have a working relationship with a number of quality insurance companies; be familiar with a company's policy terms and conditions; have the authority to speak on the company's behalf; provide a local link to distant insurers; provide claim or administrative assistance and leverage should they be treated unfairly.

I would argue agents working under a SIAA-type arrangement are less able to provide the level of service insurance consumers expect and are entitled to. Seldom, if ever, are these relationships disclosed to the client.

If consumers are offered the choice, deal with an independent agent with a direct appointment by an insurer or deal with an independent agent with a SIAA-type arrangement, they would or should consider the former without exception. It is little more than a broker type relationship and one insurance consumers would be wise to avoid.

All that clients care about is 1. Am I properly covered with a reputable carrier that will pay me if I have a claim and 2. What is it costing me. Clients can't care less whose name appears on the policy since most never even look at their policies.

For servicing of their policies clients call my office directly and anytime a client has a claim I follow up with the client to make sure he/she is happy and if they are not or the claim is not being paid for whatever reason I simply get my SIAA marketing rep involved and walla, problem solved.

----------

This shows the problems companies like SIAA face. An SIAA appointment is a direct appointment. In fact, the carrier even pays the agent, not SIAA.

The consumer would have no knowledge of any of this and simply doesn't care.

Now, an agent that has binding authority can definitely serve a client better than one that does not. But with SIAA, you get binding authority with carriers. Now, if you are talking an arrangement like Superior Access, its a different story. Agents normally use companies like Noodle and Superior Access to fill in for markets they don't have appointments with.

Dan

DJs, that statement is incorrect. Due to the confidentiality agreement I can't disclose how it is setup but one would have to assume right that SIAA with 4.5 billion in premium and with over 4,500 signed agents that they have figured out a way that is a not a problem to the big carriers, the agent, and more importantly of course the client.

 

[reedrhoden]

It wasn't that I was marketing to a specific niche it was just that when they told us the list of carriers they had access to we were excited because it was a great line up. But when it came down to it, they had very restricted contracts with those carriers. Some would give an appointment but only for auto no home or dwelling. Or they would give us a package/bop carrier and they would exclude wind/hail on the property coverage. Too many other examples to list. Bottom line is that it felt like many of the carriers were "compelled" to appoint my master agent due to political reasons an then would make it as dificult as possible to do business with them because they never really wanted to in the first place.

Sent from my iPhone using InsForums

 

[b61mack]

Reedrhoden, did you go through wholesalers for the other clients.

 

[reedrhoden]

Mostly wholesalers, with a few other direct appointments. All of my work comp appointments were direct. And on flood I negotiated better commissioner through a direct appointment than the carrier sponsored by my master agent was paying. They did offer a few comp appointments but weren't paying any more commission than I was able to negotiate on my own. All of my personal lines carriers were also direct.

Sent from my iPhone using InsForums

----------

One positive I will admit is a deal they negotiated for design and hosting of agency websites. It was simple but functional and fairly priced.

Sent from my iPhone using InsForums

 

[pzerarka]

Hi everyone,,, great engagement!
Facts are,,, the MA does not control the direct appointment,,, that's why it's a DIRECT appt. Carriers have the right to approve or deny the appt. However, because of a MUTUAL business relationship with SIAA/MA, carriers will seriously consider an SIAA member request before denying it. Why??? Because we (SIAA/Agents) work very hard to write the most profitable business in order to maximize profits and partner with our Strategic Insurance Carriers.

So SIAA/MA facilitate the request of a direct appointment from Carriers on behalf of the new agent, and Carriers respectfully consider the request knowing SIAA/MA qualify of new members. Anyone or any program out there saying differently is simply not true.
I hope this was helpful. SO,,, at the end of the day, it's going to be a DIRECT appt with the Agent's name on the policy NOT the MA.

Patrick Zerarka
602-885-6115
[email protected]

 

[reedrhoden]

That was not my experience.

Sent from my iPhone using InsForums

 

[pzerarka]

Great point... I would highly recommend to get the info from the source. It's important to do so, especially if you are making a decision for your business.

Patrick Zerarka
602-885-6115
[email protected]

 

[djs]

Due to the number of questions that come up with SIAA, its good to have someone here that can speak with some authority. I personally encourage Patrick to 'pimp' away, as long as its done in the context of answering these types of threads.

In P&C, clusters and associations are very hard to get your head around. Lots of slight differences, so its good to get the feedback. For instance, when I talked with the master agency about working with SIAA, I could have sworn they told me I would be paid by the carrier, then I have to pay SIAA. This was important to me, so I remember the conversation. Now, I'm learning this may not be the case, though I will go with the fact maybe I didn't understand correctly.

I've talked with many agents that have done the SIAA route. Most have been very happy with the arrangement, but most also stated that they no longer felt like they needed SIAA, but couldn't have gotten to that point without the help to start.

I think a large part of it is where you are at and the master agency. In my area, its almost impossible to get direct appointments, so some sort of cluster / association is necessary. They all seem to have their place, with various challenges and services provided.

Dan

 

[HealthGuy]

so SIAA then actually acts as the P and C kingpin contracting mobster ? collect from the little guy so u can proceed in your career...gotta love this multilevel ins. biz