Great Lakes Cluster/Aggregator?

[JamesJohn]

Hey All:

I’m one of the (seemingly) many captive agents here that’s looking to understand pieces of the process of jumping into the world of independence. While I have a basic idea of the steps that need to occur overall - the biggest thing I’m coming up short on is what aggregators/clusters are regionally tailored for someone like me in the Great Lakes (GL) area? I’m in MI specifically, but plan to utilize my network in the broader GL area while I wait for my 2yr Non-Solicitation to expire on my current book of business. I’m looking for carriers such-as:

- Auto Owners
- EMC
- Michigan Millers
- Michigan Insurance
- Fremont
- Citizens
- State Auto

I’m not sure if these folks only work through direct appointments or not - but figured I’d throw it out to the group if anyone knows. Also if anyone wants a few other quick-hits:

- What was your biggest struggle coming from captive to independent?
- How did you handle your non-solicitation agreement if clients called you asking to follow?

Appreciate any guidance that can be offered here. Thanks.

 

[AZDave]

Not real familiar with the MI aggregator. Seems the auto/home market is appears be quite difficult for Carriers. Are you mainly personal lines? Maybe a good time to take the two year non compete focus on the commercial side.

A good aggregator will offer you direct contracts with their Carriers. A good aggregator will charge you a fair % of your commissions. A good aggregator will share a common management system, so easy to feed business to the mother ship. A good aggregator will provide placement to carriers you do not contract with direct, and pay you fair. A good aggregator will have a clear exit/separation wording and costs involved. At the end of the day, your book is yours, and there should be willing members in the group to purchase your book, if one ever wanted to sell.

@shawnmwalker will probably come around and chime in...

A good aggregator will also not take everyone, but protect the 'group'. The group I am with required $1M 5 year profitable book, or no go.

Many aggregators out there, do your homework! Sometimes it may be better to be a producer with the big Indy agent down the street. No ownership BS, no E&O BS, get paid a fair % and renewal. Something to consider...

Went I went Indy in 2008, my agency was 50/50 commercial to personal l lines. Today, i am around 90/10 and best decision I made was to ditch the personal lines market. I was fortunate to have a 'no solicit' and as long as they contacted me, I could write them. So, an 'announcement letter' sent to my old customers telling them I could no longer assist them, that I was now an Indy, and appreciated their past business was sent and received quite well. With that, being sued by your Captive is definitely to be avoided.

The struggle you will have is a steady supply of warm leads to be quoting. That is up to you to solve. Building a strong referral base is key in the business, no doubt you already know.

I wish you the best. Love MI. Gull lake every July for me. Old family property.

Dave

 

[marindependent]

@JamesJohn you are wise to be concerned about the states and the insurers. The aggregator consideration is super important, but the locales that they provide cover for is often overlooked.

 

[JamesJohn]

I really appreciate the detail and thoughts you shared here. Definitely the hard part for me is to sift through everything to find the ‘right’ aggregator. Something I’ll continue to do my homework on!

Up to now, I’ve been strictly commercial + life and have never really been able to offer personal lines. Something I look forward to offering - the total needs provider. Based on the industries I love focused on the last handful of years - those carriers I laid out seem to consistently be great options.

Appreciate the best wishes here. It’s a daunting thought, all of this. If I make this move - I stand to walk away from a big chunk of money and success in the short-term and do generally enjoy the day-to-day. While I do obviously have my gripes and concerns long-term (or else I wouldn’t be here!) - It makes me feel confident that I’m not running away from anything, but more working towards something I see as a better career move.

Not real familiar with the MI aggregator. Seems the auto/home market is appears be quite difficult for Carriers. Are you mainly personal lines? Maybe a good time to take the two year non compete focus on the commercial side.

A good aggregator will offer you direct contracts with their Carriers. A good aggregator will charge you a fair % of your commissions. A good aggregator will share a common management system, so easy to feed business to the mother ship. A good aggregator will provide placement to carriers you do not contract with direct, and pay you fair. A good aggregator will have a clear exit/separation wording and costs involved. At the end of the day, your book is yours, and there should be willing members in the group to purchase your book, if one ever wanted to sell.

@shawnmwalker will probably come around and chime in...

A good aggregator will also not take everyone, but protect the 'group'. The group I am with required $1M 5 year profitable book, or no go.

Many aggregators out there, do your homework! Sometimes it may be better to be a producer with the big Indy agent down the street. No ownership BS, no E&O BS, get paid a fair % and renewal. Something to consider...

Went I went Indy in 2008, my agency was 50/50 commercial to personal l lines. Today, i am around 90/10 and best decision I made was to ditch the personal lines market. I was fortunate to have a 'no solicit' and as long as they contacted me, I could write them. So, an 'announcement letter' sent to my old customers telling them I could no longer assist them, that I was now an Indy, and appreciated their past business was sent and received quite well. With that, being sued by your Captive is definitely to be avoided.

The struggle you will have is a steady supply of warm leads to be quoting. That is up to you to solve. Building a strong referral base is key in the business, no doubt you already know.

I wish you the best. Love MI. Gull lake every July for me. Old family property.

Dave

 

[AZDave]

Up to now, I’ve been strictly commercial + life and have never really been able to offer personal lines.

I suggest keep it that way with your focus on commercial. The right group will offer the carriers that love commercial lines and will you to write it. Personal lines is a just not fun, too much service for too little of pay.

State Auto is on your list. They do quite well in the commercial lines and are great to quote to issue. Hard to say what they will look like when the Liberty Merger is complete, but their commercial lines paper will be changing to Liberty.

 

[shawnmwalker]

@AZDave nailed it. I would add, a Good agg will not take you on if they fee like they cant help, we don't touch MI much at all given the Local environment.

 

[Allen Trent]

given the Local environment.

Too much competition, regulations or what?

 

[AZDave]

Too much competition, regulations or what?

Michigan No Fault

 

[Matthew Labb]

Auto Owners is going to be a difficult carrier for any network to get you contracted with.

Regional carriers in general will most likely be easier for you to get on your own than through a network.

I am the business development manager for a network called Horizon Agency Systems. I won't blow up your DM, or ask that you include us in your search... but I do want to offer you this link

FAQ – Horizon Agency Systems

Scroll down to the bottom. There's 29 questions you should ask any network you are considering joining.

This should help you with your search.

 

[Allen Trent]

Michigan No Fault

Radically changed 2 years ago. Now PIP limits are optional instead of mandatory unlimited PIP for all. Plus, the ridiculous PIP order of priority that went 5-6 levels deep & included making next carrier on rotation covered PIP claims for uninsured is now changed. Lastly, hospital & Drs billing auto for 10-20 times Medicare & Health & WC claim has now been cut back