B Rated Carrier Direct or A Thru MGA

[Milkman1265]

so i have contacted some pl carriers and they are going to give me a chance and get a direct line but i'll be rolling my clients from an A carrier to a B+ carrier.

I see this as a stepping stone into A carriers but would this affect my clients, as far as I know, B+ is still financially stable. But i would hate for another agent to point out a B+ carrier and "scare" them into changing to their A carrier.

What to do?

 

[whatsa]

"A" trumps "B+" every single time, unless there is a significant price difference AND the insured signs a "chicken letter" stating he recognizes the better financial solvency of the "A" carrier, but chooses to go with the "B+" carrier anyway. Otherwise, you have an E&O and/or a lawsuit waiting to happen in the event that the "B+" carrier gets downgraded or goes bust after a Cat loss.

Why don't you quote both direct and via the MGA? Maybe with enough quotes at hand you will be able to convince the "A" carrier to give you an appointment.

 

[Sales71]

Who is the B rated company and is this P&C business?

 

[whatsa]

In my opinion, it doesn't matter who the company is. All things being equal (i.e., pricing, terms / conditions), we always go with the 'A' rated carrier, independently of brokerage -- unless the client specifically approves it in writing.

I don't want to preach, but we have a fiduciary responsibility to obtain the best price, coverage, and carrier independently of compensation. At least in my part of the world, which heavily Cat-exposed, I'd rather sleep at night knowing that coverage is bound with a solid 'A' rated carrier.

 

[Milkman1265]

P&C carrier, not life....

I will still be going through mga/wholesalers for other markets, but having a B carrier really that bad? (Kingstone Ins, btw)

This will be a direct appointment and i can work my way up to more direct right?

I think direct appointment will get you more direct appointment easier than tho mga/wholesaler? I could be totally wrong here.