To IA's... how Much Time Do You Spend ...

[GXR2]

With many of our books getting big or bigger, you probably have clients calling you to remarket them. Maybe their rate increased, their being non-renewed, or they had a bad claims experience and just want a different carrier.

One of the unique qualities of being an IA is that we can re-write our clients and retain them.

Keep in mind though, I don't always re-write every client. I make them aware at the point of sale, that insurance WILL go up due to inflation, etc. So if their rate goes up a small amount, I will have talk with them and usually don't have to re-write those clients.

But for the ones where the rates jump considerably, or other issues it's either I re-write them or loose them.

How much time would you say you spend re-writing clients? How do you fit this into your schedule so you have more time for selling?

 

[nyc2phi]

I would personally make it a job of a licensed service rep you can trust to do it right. For your largest accounts you should be marketing, blocking, etc. 30-60 days out to protect your book.

 

[GXR2]

My situation may be a bit different than some IA. I'm an IA, meaning that I'm appointed with various carriers but I work for a big independent agency. That said, I can't hire help to do that. For re-writes or remarketing clients it's all up to me. If I was working for myself as an IA and could afford it, I would hire an assistant to do all that stuff.

 

[GXR2]

With Encompass paying me 18/18 + bonus & a few other carriers not far off...I'm doing everything I can to move people from GMAC, Donegal, Travelers etc.

.... Are you saying commissions of 18% new and 18% renewal + bonus?

 

[Derrick]

Actually it's more. It's 18/16 as a base. Then there's almost always an extra 2-3% override on new & renewal business (SIAA negotiates that.) Then year end (Based off the groups loss ratio..) there's a bonus paid that's a % of your total written premium.

I you not...my 2013 bonus was 9% of my WP w/ them.

That's why I work to re-market & specifically put people w/ Encompass. Compared to Donegal & Travlers paying 12%...over the life of my agency that's an extra literally 40% earnings.

Do you do all of your business through SIAA? Or do you have any appointments of your own?

 

[GXR2]

Okay... I'm floored. That can be insane money. As compared to my structure.

I work for large independent agency but the most I can make is 8/4 and no bonuses. The upside I guess is I don't have any headache's of owing an agency - Zero expensis , no E&O premiums, etc ..

Now I'm wondering if my gig is good ... Humm and worth giving up 10% on new and 12 on renewal! And bonuses!

I guess the bottom line is the take home pay after expenses?

It's possible to make a six figure income where I'm at, although slow going based on the %'s.

Can you give insight .. Is it worth to go solo?

 

[insurance1822]

Yes, it is. E&O is like $100 per month dude. At that renewal rate, you'll soon be spitting in the wind. I can go into further detail, but if you produce totally on your own then you should open your own agency as fast as possible.

 

[GXR2]

I've really analyzed my book & I'm actively looking to remarket people into my core carriers that are paying me fat contingencies & higher renewals.

Being in the biz as long as you have you're probably aware of carriers offering low rates and generous incentives to encourage new biz growth only to increase rate once they've gobbled up business. Be cautious of putting all or a majority of business in one place.

This happened to me. A company was offering ultra low rates in my market and I was able to beat the competition. I wrote most of my nb with them. Then rates went up double digits and clients were bailing.

Weigh the risks versus benefits.. Steady secure diverse growth versus fast growth with potential volatility.

 

[mattupthehill]

Being in the biz as long as you have you're probably aware of carriers offering low rates and generous incentives to encourage new biz growth only to increase rate once they've gobbled up business. Be cautious of putting all or a majority of business in one place.

This happened to me. A company was offering ultra low rates in my market and I was able to beat the competition. I wrote most of my nb with them. Then rates went up double digits and clients were bailing.

Weigh the risks versus benefits.. Steady secure diverse growth versus fast growth with potential volatility.

Great point! Would it be worth looking into the companies rate changes over a period of time to make sure your not writing too much business with a company that changes rates often?

 

[GXR2]

There are really no trends to analyze. It's hit or miss. The best advice is to diversity your book among all your carriers. If one takes a rate hike you won't be crushed financially. The're only so many hours in the day to remarket a huge slice of your book from one carrier going south. Often you don't have fair warning. You find out when you get the cancelation notice.