Liberty /safeco Auto

[bluelinebroker]

Im captive right now but can sell progressive. I have done better with commercial with progressive. Farm Bureau is heavy hitter in my hometown. I saw where safeco blew out an auto qoute then business on client of mine. Wondering if I should look independant and best way to go if I do. Thanks

 

[indienoise]

There's always going to be a cheaper price, somewhere. I wouldn't let one lost customer change your entire direction. Safeco is competitive but not the end-all. What company are you with? Is there some other reason(s) you're looking to change?

FWIW, I just left a captive agency and opened an Indy. My first bind looks like it will be happening today. Ironically, with Safeco.

 

[BigIVU]

What state are you in?

 

[blue_wynd]

Independent is always the best route if you can swing it. More choices = less headaches when the carriers to go wacko on you.

 

[JenkinsAgency]

Independent is always the best route if you can swing it. More choices = less headaches when the carriers to go wacko on you.

That's a really irresponsible and inaccurate generalization. Training, systems, platforms, support, billing, marketing, brand recognition, consistent underwriting and underwriting loyalty, bonus structure, etc. are all better with a high quality captive carrier.

The only real benefit to being an independent is flexibility and insulation against rate instability. There are many, many cons too though.

 

[BigIVU]

The biggest advantage of being an independent agent is probably that the agency owns the business, not the insurer.

 

[indienoise]

The biggest advantage of being an independent agent is probably that the agency owns the business, not the insurer.

Pretty much the only reason i did what i did. That, and it will make me more money. To be fair, i wasnt the principal of the captive agency, but even if i were my % wouldn't have been as much as they are now.

 

[hesse]

Having access to 15-20 carriers vs 1 especially on commercial is very advantageous

 

[indienoise]

Having access to 15-20 carriers vs 1 especially on commercial is very advantageous

Any good captive should still let you broker commercial business. Some will even let . you broker personal lines as well. But if the captive carrier doesnt have competitive markets in both personal and commercial it's a pointless endeavor. While this jenkins fellow is right that it was an overbroad generalization, sadly it appears he's drank the farmers kool aid. I hope, for his sake, that they continue to be good to him, and he has a plan to insulate against the downturn that will eventually hit.

 

[JenkinsAgency]

Any good captive should still let you broker commercial business. Some will even let . you broker personal lines as well. But if the captive carrier doesnt have competitive markets in both personal and commercial it's a pointless endeavor. While this jenkins fellow is right that it was an overbroad generalization, sadly it appears he's drank the farmers kool aid. I hope, for his sake, that they continue to be good to him, and he has a plan to insulate against the downturn that will eventually hit.

No drinking of koolaid here. But, I get the best of both worlds. I get to broker out all the business Farmers either doesn't want, or isn't competitive with, and I get the brand recognition, systems, support and bonus structure that no independent will ever have.

I've already weathered a downturn, and it was doable, because of the flexibility I have with my contract with Farmers here in TX.

The Indy evangelists song and dance gets really old on these forums. They downplay the significant disadvantages of the Indy channel.