Suggestions for moving into P&C business

[MedMalAgent]

Ok...so what's the problem with Aggregators?

I think they are a perfect fit for some situations. All have different business models but overall you pay a pretty high price for access to markets. Right now is a great to get a contract on your own if you have the right mix of experience and track record. You should contact them on your own and make your own decision. I have talked to all of them in the past but I have not and will not do business with any of them.

 

[rocketboy]

Medmelagent, if you can provide some more information it would be really appreciated. I am currently looking at

Iroquois
SIAA
Superior Access
Smart Choice
Insurance Noodle
Potter Group
Networked Insurance


So far it looks like Iroquois is the only one that gives you binding authority. Can you please tell me why you wont use any of them?

 

[MedMalAgent]

So far it looks like Iroquois is the only one that gives you binding authority. Can you please tell me why you wont use any of them?

If I were going to use one it would be Iroquois. If you have looked at the contract you are aware of the one big negative.
I started my agency one year ago. I now have two direct appointments. I wouldn't use any of them because now is a great time to get appointed, most companies are looking to grow right now. I started out with one and just got the second one about 6 weeks ago. With this soft market you don’t need 15 carriers to hit some big numbers. They all want business and will give you the pricing you need to make money. I had 6 years of working for an independent before I launched my own agency.

 

[saieddie]

How do you get the "pricing you need to make money"? I thought auto and home rates were filed with the state.

 

[rocketboy]

Ya, Iroquois is what I am planning on going with if I can't get direct appointments. I mean I have a great business plan, financial reports, business background, marketing plan and money, but no insurance experience. Do you think it is possible to get direct appointments?

 

[1manshow]

Travelers, Hartford, Safeco, Farmers IA, are all hungry right now and giving out contracts in our state with no premium committments. I'd follow MedMal's advice and solicit direct appointments at all costs. Put together a good marketing plan and they seem to be all ears.

Good luck

 

[MedMalAgent]

How do you get the "pricing you need to make money"? I thought auto and home rates were filed with the state.

I am 100% commercial lines. I think you are correct about home and personal auto rates with most states.

 

[djs]

Aggregators make a great secondary source. Try to get appointed directly with your primary company, then use one of the aggragators to deal with the misc market stuff that comes your way. Don't get to distracted writing things outside of your norm, but you want to take care of your clients.

For me, I used to have a problem writing dump trucks. I'd have clients that would have a dump truck they used in their business, so rather than sending the entire business elsewhere, I would use SIAA to write the truck through Progressive, and I'd write the core business in house if it made sense.

At the same time, I would never bother to go visit a cement company or a general contractor for their liability insurance. I don't have a market for it, and it is a distraction to have that conversation. yes, I could place it, but I don't want to take the time to learn that market right now.

Dan

 

[saieddie]

Great advice. I usually only deal w/excess lines stuff if my niche business is quiet that day. Its usually more trouble than its worth getting it written anyway.