Superior Access Vs. Smart Choice

[HealthGuy]

Been looking very closely at both business models, but am still a bit confused. Why would someone begin to write business through Smart Choice and allow them to take an upfront 30% cut (capped at 15k annually) verses writing through Superior Access and taking 100% of first year commissions and only giving Superior 20% (uncapped) on second year (and ongoing) renewals....Superior Access doesn't put your name on the policy, but does this really make a difference if eventually once you build up your P and C clients you can just then get direct contracts anyway? What gives between these two P and C distributors / brokers? What am I missing? Does Superior Access then take all renewal commissions if you eventually get direct carrier contracts? This is paramount for me as I currently don't have a P and C client base.

Please, the P and C side of this business is new for me, I am the HealthGuy. Need some veteran P and C help. Thanks in advance. I would like to keep this thread focused only on the pros and cons of these two organizations only.
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Up to 45 views and NO comments, man this must be a boring topic. Sorry guys!

 

[CR in STL]

I am in the same boat as you. I currently have an Employee Benefits company and we are always being asked about workers comp and BOP's. I figured with the chaos in health care right now it might not hurt to diversify my business.

I have looked at them all and this week I am probably going to sign with Superior Access using their professional client services to handel the admin side. There is a little higher monthly fee for this service but you also get more commission and all of the admin help which is great since I don't have a secretary. So far what I have seen from them I like and again I just sell the policy and they do all of the quoting, dmv reports Etc. Check back with me in a month or so and I can give you more info.

 

[HealthGuy]

Thanks CR...I thought with Superior Access you do the quoting with EZ Lynx?

 

[FLInsa]

I can't discuss these two entities because at least here in FL they suck - not sure in TX though.

Having said that, not having your name on the policy is NOT a big deal. After all, how many clients actually even look at their policies.

 

[djs]

There is a difference in what both of these are. I don't have any direct experience with Smart Choice, but, I did watch the video once

I have direct appointments, but I fill in markets with Superior. When I come across something that I don't write much, but an existing client has a need, its a great fit for me to send to Superior. This works because I have all of my existing systems in place.

If I understand Smart Choice, it's more of a franchise model, providing you with the required systems and methodologies and even some training. Is it worth the money? Hard to say, I don't work with them and haven't had that conversation with them at all.

Superior also has a monthly fee associated to it, which Smart Choice claims not to have.

Dan

 

[HealthGuy]

I wouldn't fill in markets with either of these entities, but they would be my primary vehicle to write P and C through as I don't have a current P and C book. Does it make sense to write through Sup. Access and then eventually go direct?

 

[CR in STL]

With superior from what I have seen when meeting with the rep they have some carriets where you can quote instantly online and it will quote all at once. The other carriers that are not online you have to fill out the ACCORD form.

That is why I am going to pay a little more for the Professional Client Service. The will do all of the work for me and since I do not currently have Admin staff and being new to the P&C side I think that is a perfect way to get started, They handle everything I just sell the policy. It's $250 a month which is a lot cheaper then hiring someone.

The $250 is more like a retainer when you write a policy they take $50 out of it however if you write 6 deals then you owe $50. Again I am ok with that some might not be. If it is a low premium they reduce the fee by 50% The other thing you are getting a much higher commission rate opposed to if you just sign up and do the $30 month deal.

I have looked over the contract and it is month to month. You can switch services within SAI or cancel altogether

I am just waiting for my E&O to come back this week and should get started. As I said if you want to check back in a month or so I can give you the scoop.

 

[HealthGuy]

Great feedback CR, but is there a catch working with Superior Access? Why do they (when you get enough P and C clients) then allow you to appoint direct instead of writing through them? Its like they don't care when you do that. It seems to good to be true. With Smart Choice, you have a set block of carriers like 3 to 5 and they never let you appoint direct with your main carriers. You are always on the hook with Smart Choice and have to write through them with those main carriers they offer. What am I missing here, anything?

 

[djs]

Most people I know use Superior to round out their product offerings. Because of this, they may get direct with a few carriers, but will always have business that doesn't fit and place it back through Superior. Personally, I think Superior writes more business because they don't care if you end up appointed direct.

The other issue, actually, a big one in the P&C world, is Superior does not provide any binding authority. This can be a killer in personal lines. I don't know if Smart Choice offers binding or not. Superior can be a bit slow from time to time.

Dan

 

[HealthGuy]

What is the big deal (I dont know the answer) about binding authority?? No, Superior Access I think has the binding authority, not the agent, but who cares, can't people normally wait 24 hours to get a policy issued?