Tips for Carrier Rep Meetings?

[Derrick]

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.

 

[DJAJ]

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.

You are absolutely right, I was surprised to get it but as soon I started seeing the quotes I knew exactly why. Also, I agree with everything you are saying about the way it works with insurance companies and agencies. Being a young agent trying to grow in this industry is hard enough with all the competition but then not being able to get access to the companies that can help you grow is frustrating.

 

[indienoise]

My appointment went through today. I just might pull this thing off without a cluster after all.

 

[insurance1822]

Just an FYI... Their essential tier only pays 10% so always write the enhanced tier at a minimum. I believe until you have 300pif their commissions are like 10% nomatter what.

 

[shawnmwalker]

Derrick,

Don't feed Ins1766's ego. He does not need that in life right now.

Everyone Ins1766 is correct. Don't write "name of Limited Product w lower commissions here". Every time you do you write a letter to the president of every company that says, "Its cool, We sell rate alone, cut my commissions to nothing, we will still sell it."



Carrier Reps and Meetings where you are seeking an appointment, I liked Ins1644's post. Minus the flair.

 

[insurance1822]

Just had a meeting for a direct appointment w/ a regional powerhouse. The only agencies that have them are like 3 local HUGE brokers + 2 older mom & pops. I've met w/ them each for & this is the 3rd year. The last 2 years I didn't push it b/c I was a bit green still & was nervous about their production requirements (Even though I knew I could hit it.)

They looked at my numbers & said sign here. Now granted, I talked the talk (and I have learned alot from you f@gs on these forums..) but there was no question if they'd appoint me. They flat out are not giving commercial appointments, but said I could get one after a few years of personal.

Boo ya! special thanks to Shawnwalker for his guidance & support despite his continued attacks against me.

 

[shawnmwalker]

HAHAHAHAHHAAHHAHAH! What attacks?

Good for you! Who is the carrier? I am betting, Auto owners or State Auto, Grange? HUmmmm?

 

[Derrick]

HAHAHAHAHHAAHHAHAH! What attacks?

Good for you! Who is the carrier? I am betting, Auto owners or State Auto, Grange? HUmmmm?

Probably A/O. They are the single reason I haven't gone out on my own yet. Their preferred rates just blow the pants off anyone else and they are VERY picky about their agency selection process.

Just had a meeting for a direct appointment w/ a regional powerhouse. The only agencies that have them are like 3 local HUGE brokers + 2 older mom & pops. I've met w/ them each for & this is the 3rd year. The last 2 years I didn't push it b/c I was a bit green still & was nervous about their production requirements (Even though I knew I could hit it.)

They looked at my numbers & said sign here. Now granted, I talked the talk (and I have learned alot from you f@gs on these forums..) but there was no question if they'd appoint me. They flat out are not giving commercial appointments, but said I could get one after a few years of personal.

Boo ya! special thanks to Shawnwalker for his guidance & support despite his continued attacks against me.

Any words of wisdom for us plebes?

 

[FL P&C Broker]

Their rates are unbeatable on the ultra preferred here for liability and auto insurance in Florida. I look at some of the agencies that have them though and it looks like a 3rd grader put their website together. And it's not like the agency has been around for generations. Guess they just knew someone. I would love to have them here.

 

[shawnmwalker]

FL P&C are you talking about Auto Owners?


Separate note. Many regional or super regional carriers struggle on the Website/Tech fronts. There is a trade off on carrier resources.