Any recent experience with a P&C wholesaler?

[NotEnough]

Hi All,

I've been searching for a while regarding wholesalers such as Smart Choice/ Bolt Access but they were several years old, some even older.

Anyone have recent experience with them? I'm planning to use a wholesaler as a way to break into the independent market without a book.

I've been in P&C since 2014, life since 2014. Been working as a producer at a captive agency. Average around $250-$300k AP. Some bonuses and spiffs, no salary or renewals. Great office (why I've stayed there so long) but I'm tired of the company and our specific market. Also looking at taking the leap forward.

Decided on a wholesaler to build a little book before rolling out into a cluster or affiliate group since most want a book to start. I'll be selling to my network so I'm not too concerned about the delay in binding.

Any experience with them will help aid my decision. Any recommendations for other wholesaler will be greatly appreciated as well. Thanks!

 

[marindependent]

My understanding is that Bolt Access is the new name for Superior Access.

Search "Superior Access" on this forum and read-on.

One thing to keep in mind is that many of these "wholesalers" as you call them - don't allow you access to bind on your own. In other words, you often have to wait 24-48 hours to get the policy in place.

 

[Milburn Drysdale]

Scratch Smart Choice off your list, they over-promise and under-deliver.

In my area there have been two formerly captive agents that affiliated with a small to medium independent agencies and are both working out of offices near their original locations. The arrangement gives them access to good carriers without delay and the agony of "qualifying".

 

[Matthew Labb]

Where in CA are you? Lived in Nor Cal for about a decade before moving to Arizona.

I don't like writing through MGA because there's no binding authority. There's simply too much friction to try and build a book with no binding authority. That's only my opinion but I know many indies will agree with it.

As for joining a network, you can definitely join a network without a book.

I work as the business development manager for a P&C network based out of CO. We're very mom and pop type of vibe, but at the same time growing quite quickly.

We currently have 200 agencies, recently featured on the Inc 1000 as one of the fastest growing companies in the US.

When you do approach networks, ask these 30 questions.

Hope this helps!

1. Do you have a good carrier mix across the lines of business I want to use in my agency?
2. Are those carriers competitive in my region specifically?
3. Do you have any production requirements?
4. Do you provide an agency management system?
5. Do you provide a comparative rater(s)?
6. Do you have a non-compete or non-solicitation if I decide your network isn't for me? If so... why?
7. Do I need an office or may I work from home?
8. What if I am new to Insurance, is that ok in your network?
9. Do you have any exit fees?
10. Can I sell my agency at some point?
11. If I sell my agency, do you take a cut?
12. Will I quote, bind, and service my policyholders directly with the carrier on their sites, or submit through you.
13. How long is my contract for, and do I get ownership right away, or over time?
14. What are the startup fees and are you willing to work with me if I need to make payments?
15. What is the commission rate/split?
16. What is the criteria for participation in the contingency bonuses (if applicable)?
17. When there are overrides and incentive bonuses do we get any of those while in your network?
18. Do you have a cap on the commission split or do you take your split forever?
19. Do you offer training during the startup phase of my agency and mentorship throughout the relationship?
20. Are you open to me contacting some of your member agencies before I sign the contract?
21. Are you open to me contacting some of your carrier reps before I sign the contract?
22. May I have an attorney, or third-party consultant review my contract with me?
23. How much industry experience does your network leadership have?
24. Has anyone in your leadership had experience in running an independent agency?
25. Does anyone in your leadership have any carrier experience/background?
26. May I contract with other carriers outside of your network?
27. How long have you been in business and how many agencies do you have in your network?
28. Define ownership.
29. How does your agency network make money?
30. One of the most important things someone can do other than reading the contracts of many networks is to speak to the owner/CEO/president of each network to get a feel for the culture. If you find they don’t have the time to talk to you... message me your contact info and I will make time for you.
    
    
    Matt Labb
    Business Development Manager - Horizon Agency Systems
    

 

[NotEnough]

Where in CA are you? Lived in Nor Cal for about a decade before moving to Arizona.

I don't like writing through MGA because there's no binding authority. There's simply too much friction to try and build a book with no binding authority. That's only my opinion but I know many indies will agree with it.

As for joining a network, you can definitely join a network without a book.

I work as the business development manager for a P&C network based out of CO. We're very mom and pop type of vibe, but at the same time growing quite quickly.

We currently have 200 agencies, recently featured on the Inc 1000 as one of the fastest growing companies in the US.

When you do approach networks, ask these 30 questions.

Hope this helps!

1. Do you have a good carrier mix across the lines of business I want to use in my agency?
2. Are those carriers competitive in my region specifically?
3. Do you have any production requirements?
4. Do you provide an agency management system?
5. Do you provide a comparative rater(s)?
6. Do you have a non-compete or non-solicitation if I decide your network isn't for me? If so... why?
7. Do I need an office or may I work from home?
8. What if I am new to Insurance, is that ok in your network?
9. Do you have any exit fees?
10. Can I sell my agency at some point?
11. If I sell my agency, do you take a cut?
12. Will I quote, bind, and service my policyholders directly with the carrier on their sites, or submit through you.
13. How long is my contract for, and do I get ownership right away, or over time?
14. What are the startup fees and are you willing to work with me if I need to make payments?
15. What is the commission rate/split?
16. What is the criteria for participation in the contingency bonuses (if applicable)?
17. When there are overrides and incentive bonuses do we get any of those while in your network?
18. Do you have a cap on the commission split or do you take your split forever?
19. Do you offer training during the startup phase of my agency and mentorship throughout the relationship?
20. Are you open to me contacting some of your member agencies before I sign the contract?
21. Are you open to me contacting some of your carrier reps before I sign the contract?
22. May I have an attorney, or third-party consultant review my contract with me?
23. How much industry experience does your network leadership have?
24. Has anyone in your leadership had experience in running an independent agency?
25. Does anyone in your leadership have any carrier experience/background?
26. May I contract with other carriers outside of your network?
27. How long have you been in business and how many agencies do you have in your network?
28. Define ownership.
29. How does your agency network make money?
30. One of the most important things someone can do other than reading the contracts of many networks is to speak to the owner/CEO/president of each network to get a feel for the culture. If you find they don’t have the time to talk to you... message me your contact info and I will make time for you.
    
    
    Matt Labb
    Business Development Manager - Horizon Agency Systems

Thank you for your response! I will be sending you a PM.

 

[Matthew Labb]

Thank you for your response! I will be sending you a PM.

my pleasure! We aren't the perfect fit for everyone, but for many it works well!

Happy to give you a better idea of what to expect from networks of all shapes and sizes.