Which MGA Would You Team Up With?

[igotit0821]

As a start up agency owner, I'm indecisive about which MGA company I should team up with, Agents-Advantage or Appalchian. As a lot of you may be aware, they both offer access to similar carriers, instant quoting system, and commission splits. However, the difference lies in that Agents-Advantage has a volume requirement of 4 policies per carrier and allows Binding Authority; Appalachian has no volume requirement, but does not allow Binding Authority.

At first you would think that 4 policies per month are not too tough to manage and it's an easy choice to go with the one that offers binding authority. But when you want to juggle with 4 different carriers in order to provide different clients with more choices the minimum number becomes 16 policies(4 per carrier) per month or the binding authority will be cancelled by at least 1 or more carriers or even all of them if I don't play right. Appalachian, on the other hand, with no restrictions I can play with all four different carriers at my will, but NO BINDING AUTHORITY (I'm just concerned that what you quote your clients initially may not be the final price because you have to submit the application and wait for the underwriting dept.'s final decision?)

Which would you go with. Your opinion would be greatly appreciated. Thank you.

 

[Air Jer]

The folks at Appalachian are easy to work with.

 

[Hefe]

I've never worked with either but I would go for the one that offered binding authority provided that commission splits and book ownership agreements were similar.

4 policies per carrier doesn't sound like too much. Is that per month?