Comparing Insurance Clusters (MGA's/Aggregators/Wholesalers)

[Ferrari]

Rookie here. Love the forum and reading a lot and will continue to do that.

I have also learned that going indy from scratch without being a member of a cluster it's hard to get appointed by P&C carriers.

0 book of business and plan is to work from home to avoid office overhead cost.

Many of you have years of business experience running your agency. So I am wondering if any of you is/was affiliated with clusters like: Insurance Noodle, Smart Choice, SIAA, Agent Secure, Iroquois Group, Superior Access... etc.

I don't have expierience with any of these companies.

My main points of concern are:

1. Book of business ownership
2. Start up or monthly program fees/Commission split
3. Access to Carriers with binding authority
4. Product availability (Illinois)
5. Transition into my own direct appointments (later)
6. E&O requirements
...

Pros and cons.

If there is side by side comparison in one single topic, then I am sorry for opening fresh thread and please point me to the right direction.

Thank you.

 

[Guest]

I am part of SIAA and love it.

You will have to contact each cluster yourself as each one in every area is completely different with their fees and carriers that they have.

Are you captive now? Any Insurance sales experience?

 

[Ferrari]

@Red Blooded American,

no I am not captive and my only 'insurance sales experience' was being insurance affiliate for two years. I know that is a whole different animal, but building my affiliate website and writing articles I decided to give it a chance. Got my P&C license and Agency license with state of IL. That is where I am right now so far.

Thank you very much for your input here. I really appreciate it since I found out on this discussion board that you are running one man show from your home office. Correct me if I am wrong.

To be a SIAA member I have learned they are asking 10k initiation fee? Do they offer any payment plan if do what is down-payment and how much monthly later on?

Thanks again

 

[djs]

You would have to ask the Master Agency rep that works in your area. I know in my area, they will do payments.

In my neck of the woods (Northern California), SIAA won't work with you without experience. Truth is, a lot of clusters are that way. They do a lot for you, but you need to write the business and maintain your profitability for the carrier. New agents are notorius for having some higher loss ratios. Yep, I can remember my first few years.....

Dan

 

[Ferrari]

@djs,

thank you for your share. Am I on right track to get more info form SIAA here: chicagolandsia.com ?

If like you said lot of clusters wont work with rookie agencies, then what other option do new people actually have?

Does anybody have an opinion on Iroquois Group? There is no upfront costs besides $150 monthly fee, if I am not mistaken.

 

[NCAgent]

@djs,

thank you for your share. Am I on right track to get more info form SIAA here: chicagolandsia.com ?

If like you said lot of clusters wont work with rookie agencies, then what other option do new people actually have?

Does anybody have an opinion on Iroquois Group? There is no upfront costs besides $150 monthly fee, if I am not mistaken.

If I recall, iroquous has a non-compete for 2 years after. So if you leave them then you can't use the same carriers until that time period is up. I am sure there are ways around that but still...

 

[Ferrari]

If I recall, iroquous has a non-compete for 2 years after. So if you leave them then you can't use the same carriers until that time period is up. I am sure there are ways around that but still...

You are right. According to their website if you later decide to leave Iroquois you are then prohibited for a period of two years from seeking a direct appointment with that company. However, you are free to move your book of business to another non-Iroquois carrier. But isn't that a case with all of them?

I am wondering is it true that SIAA takes certain % in equity position in the agencies business they serve?

 

[1manshow]

Good information on available clusters on this link

 

[djs]

@djs,

thank you for your share. Am I on right track to get more info form SIAA here: chicagolandsia.com ?

If like you said lot of clusters wont work with rookie agencies, then what other option do new people actually have?

Does anybody have an opinion on Iroquois Group? There is no upfront costs besides $150 monthly fee, if I am not mistaken.

It would depend on where you are at in Illinois. I refer you to Midwest

A lot of clusters won't work with new agents, some will. You have to ask and you have to make a case as to why they should work with you.

Dan

 

[Guest]

Good information on available clusters on this link

Agent Equity doesnt know his head from his ass, I wouldnt listen to him