Insurance Clusters Monopolizing the Market? Help!

[shawnmwalker]

Josh,

Ins1256, refuses to write with me because he thinks his ideas are the only ideas with merit! And because I refuse to use his correct handle.

 

[Gulfman]

No.. But working at an agency means writing for them on both sides of the table. Plenty of P&C agencies write life & Health, some with dedicated Divisions for it. I've found no luck finding an agency that would appoint me just on the P&C side. It's all or nothing. In fact most P&C agencies I've talked to aren't looking to appoint any agents.

Plus I want branding freedom. I'm a fun quirky guy that plans an implementing crazy unique marketing strategies and that's hard to do when tied to someone else's brand.

Whoa...you telling ME that if you are a producer (someone who brings in and closes biz), that an agency in MI will not sign you up?

That makes NO SENSE !!!
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InsBrah and Others,

I remember being on the carrier side and managing 6-8 reps and a distribution channel of a few thousand agents. I remember walking into a large clusters office and the agent telling me he appointed a few new agents in the Boroughs of NY and he informed me that I would be appointing them (Not asking me, but telling me)

I would not, he leveraged his book against the appointments and lost his contract.

Ok Shawn....what do you mean, he leveraged his book against the appointments?

• Did he hire some scumbags and write bogus coverage?
• What happened to cause him to lose his contract?

....

No one wants a new agent in Michigan. The laws make it hard to term agents for bad behaviors once they are appointed, they too have PIP problems that are not getting controlled and carriers struggle in Michigan. InsBrah your situation would be the same if you were in Miami or NYC. You are simply in a difficult spot in the US. There are few areas in the US I shy away from, MI is one of them!

Are you saying there is too much FRAUD in these areas "specifically?"

Thanks!

 

[shawnmwalker]

He said "give my new agents the appointments in (Name costal town on eastern seaboard that my carrier did not want) or you can kiss my million dollar book I have with you good bye."

"Goodbye it is then, easy, see you later."

Michigan- Carriers can't get off of contracts or adjust their distribution channel like they can in other states. Its all about pulling leavers to control the flow of business. In Michigan they have a few less leavers they can pull because of state laws.

PIP is a problem. Fraud is at play there too....but I was not suggesting that, I could see how you got there with my comments. More importantly, Terming an agent in MI is tough legally. Down sizing a distribution channel there is tough.

Its a tough state.

 

[nyc2phi]

Reach out to Auto Owners. They are one of the few preferred carriers that appoint scratch and I think that is their home state. Might be tough but can't hurt to try.

Shawn do you appoint agents in Philadelphia?

 

[Comm_Ins]

Getting appointments is very hard in Michigan. Personal lines are pretty much impossible, with the exception of Progressive and maybe Mercury. Insurhive.com is the only option I am aware of for easy access to personal lines, of course it comes at a significant cost (40%), you would not be successful at recruiting agents to work for you because it just would not be worth it for them. But if your a 1 man show this might be the only option for now.

You may have a little better luck on the commercial side but you are going to have to start with some MGA's and Brokers for e&s.

I totally agree with you in regards to SIAA. They are full of it. They literally make up rules as they want and however they feel that morning. They don't even have the courtesy to return a phone call.

Just curious What part of the state are you in?


There is a few smaller commercial carriers that will appoint you in Michigan but they may require for you to have some experience. Try Conifer or Prime One. They will write restaurants, bars, WC, liquor Liabilty, convenience stores, gas stations, some professional liability, some LRO. They are admitted carriers and are a good option for starting, if you can build a decent book with these guys you could have a better shot at the bigger carriers.

Good luck

 

[Gulfman]

He said "give my new agents the appointments in (Name costal town on eastern seaboard that my carrier did not want) or you can kiss my million dollar book I have with you good bye."

"Goodbye it is then, easy, see you later."

Michigan- Carriers can't get off of contracts or adjust their distribution channel like they can in other states. Its all about pulling leavers to control the flow of business. In Michigan they have a few less leavers they can pull because of state laws.

PIP is a problem. Fraud is at play there too....but I was not suggesting that, I could see how you got there with my comments. More importantly, Terming an agent in MI is tough legally. Down sizing a distribution channel there is tough.

Its a tough state.

Hey Shawn...thanks for your comments.

1. So basically you are saying that he was trying to force your company to work these "tough" states that you guys wanted no part of...and got "his bluff" called and lost the contract (Correct)?

2. IN addition, he was not following the carrier's lead by going after biz your company wanted to write.


CORRECT?

 

[shawnmwalker]

Yup. All true Gulfman!

 

[insurance1822]

^ not buying it. Why would a carrier get off a BOB instead of just saying "we aren't not appointing those new agents?"

 

[shawnmwalker]

The relationship. The Power play. The game was being played wrong. We bailed.

I think you think carriers are all white gloves and mister nice guy. They can use a hatchet when they need/ want to.

All I had to do was have a back up plan to replace 1m in WP. How many any agencies do I need to appoint to do that. 4,5,6 over a few states. Done. Replace one bad apple for 4 new ones willing to play nicer.

 

[insurance1822]

Again. Why not have a conversation about the attempted power play & set boundaries/expectations moving forward instead of bailing on them like that? If it's truly a relationship I mean wtf?