Lack of Binding Authority

New to the site and the P&C world. I'm aligned with Agent Secure. Can anyone tell me how YOU handle the lack of binding authority with your clients. Has this been an issue and if so how have you been able to address it. Thanks in advance for your help.
 
The one and only way to handle this is to get binding authority, at least for the everyday risks. It's not always possible upfront, but it has to be your goal.

Without binding authority, you need to focus on individuals that have insurance currently and want to shop to save some money. Basically, I would just end with something like 'Great, we'll get everything setup with an effective date a week from now, this will give us time to make sure everything is in place'.

Don't bother trying to explain binding authority to a client. You'll lose them in the conversation and also lose them because you don't have it.

Work hard to find a couple of carriers that will give you binding authority (or at least give you quick binds when you need them) so you can take care of situations that require immediate coverage.

Dan
 
Thanks Dan. I do have a sub standard direct appointment with binding authority of course. Same angle with the home owners and renters or in your experience is the timing not much of a factor with those lines? Again thanks for your advise.
 
Timing is a factor with all personal lines.
Auto - somebody buys a car, needs coverage. Dealer wants it now so they can get the loan funded.
Renters - People need the policy NOW so they can move in.
Homeowners - Escrow won't close until you have an insurance binder in place.

The concern is that without binding authority, you miss the biggest catalyst that makes people shop insurance. It makes it tough the first few months.

Of course, if you can bind substandard, you can market to this crowd. I haven't done it in a while, but, you can get internet leads for people who need an SR-22 pretty easily. Most agents don't want these. Age restrict for people over 25 and you'll build a client base. The good news is these individuals rarely let their policies lapse because of the SR-22 concern AND the premium is higher than average.

I used to do this to build my premium base (Gross Written Premium), but they were not necessarily the clients I wanted long term. A lot have turned out to be good clients though.

In fact, I think I'll run some of these leads for a while. Like I said, everyone else filters them out, so they are usually available and can be written easier than other leads. You likely will be the only one calling them.

Dan
 
I also use Agent Secure and they have been great so far. I just have to set the expectations with the client that it may take a day to get a bindable quote.
 
Cap you may want to check with Appalachian Underwriters (www.appund.com) in your home state. They have a program they hook you up with SAFECO for direct writing/binding. Don't know much about it but I did see it on their website. It may be helpful
 
Thanks I'll look into that. Hey Cranson fhow long have you been working with agent secure do you have any advise about marketing for me?

Justin
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Warren Hey thanks for the advise on Appalachian Underwriters. I'm checking with them now. It may work out thanks again
 
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