- 205
Speaking of Super reginoals, how disappointing is this. I just got an appointment with State Auto which I was excited about because it is my first regional carrier. However, its looking like their auto rates are terrible in MD, either that or I just haven't found their sweet spot. Although I have done a ton of quotes with them. I really want to write business with them but its going to be tough.
And you know what? I bet the only reason that they gave you the appointment is because nobody is writing business with them in that area, because they are not competitive in your area. No offense. And instead of carriers realizing that, "Hey, if we're not competitive in this area, maybe we should revise our rates," the marketing rep just says, "Hey, we got a new agency appointed! Let's just wait and see if he produces even though our product sucks! *crickets*"
Conversely, the regionals that are competitive in your area will not give you the time of day. They scoff at you simply because the agencies that they do have appointed geographically in your area have been producing well, even though the product / premiums have grown tremendously the last 30 years as a whole and everybody won. To them, why fix what's not broke? Who cares if you're a new-ish agency, young owner, with tons of energy and ideas? Who cares if you have people climbing up the insurance ladder and could quote competitively in your agency? We're making money hand over fist, I don't need you...!
This all stems from the fact that 20-30 years ago many of these super regionals were small, $10-25 million insurance companies that were picky about their insurance agencies. Not because they could be, but they simply couldn't grow sustainably by appointing anybody and everybody. Since these small companies then turned to couple billion dollar companies, it has evolved into lets still be picky because that's what worked before. And also playing it off as being faithful to the insurance agencies that appointed them in the past.
THE PROBLEM with that is because of whatever reason, those small $10-$25 million insurance companies aren't popping up, and don't exist any more. At least not to the extent it did in the 60's, 70's, and 80's. So they can't come in and partner with newer agencies, and the newer agencies can't get big regionals because they just aren't interested in fixing what's not broke.
I think it's funny that every week I read an article about the trouble bringing in younger talent into the insurance world, as well as the constant complaints about old technology. Maybe, just maybe if you didn't make it impossible for young entrepreneurs / agents to throw some skin in the insurance game while also gaining the reward, that would change. But they literally make it impossible to pass the torch.
Last edited: