New Company Appointment for Book Roll

[itchiemitten]

HI
Looking for ideas on how to entice companies to roll my 200k personal lines book. Had a large fire loss in 2014 which caused my current carrier to terminate my contract. It has affected my 2014 & 2015 ELR. Having trouble getting companies to get past the large loss numbers. Located in Vermont with only 600,000 people in the whole state, so options are somewhat limited. Any advise will be appreciated.
Thanks

 

[insurance1822]

It doesn't make sense that they'd can you over 1 large loss? How long have you been writing for them? What's your frequency like? What's your growth like? What that carriers experience like in that market? Again...doesn't seem right?

 

[itchiemitten]

I found it a little hard to believe as well. My agency has been writing with them for decades. I think it was a combination of the large loss, over $1 mil, $200k in premium and no growth. The large loss occurred in Jan, after that I moved business to companies I knew I would get profit sharing with and had no growth with them, so I think that ticked them off as well. Also new management and word on the street is they are becoming more and more difficult to work with. Meanwhile I'm looking for a home for that 200k in premium.

 

[insurance1822]

how long did they give you to move the book? have you reached out to an attorney or the Doi?

 

[insurancemansam]

Auto Owners cancels agencies for 1 large loss. It's rare but happens.

 

[shawnmwalker]

That adds up to a termination, sure.

200k book, 1 million loss, no growth, moving book for money elsewhere (If No perceived Loyalty). Where legal, I would have dropped commissions to 2% so you could not make another dime off my company in the process of moving the book and encouraged you to get on with it.


I am only saying this to illustrate:
Two can play at the game when the business decision is made to move a book of business.

 

[insurance1822]

So carriers can unilaterally make the decision to cut commissions like that? seems bold?

 

[shawnmwalker]

Ins1822,

Wouldn't you love a new Generation of Reps more empowered to be BOLD in ways that positively affect you even if they too had the ability to be BOLD in ways that could potentially negatively affect you?

A rep that can do what I described above is Empowered to Manage his distribution channel as he/she sees fit and get accolades/fired for doing it correctly/incorrectly.

 

[HCCIA]

Commissions are set by contract. I doubt they can cut them like that. I would cancel your book too! Especially if you were not growing and worse - taking business away! The company is entitled to make money too. It was a sound decision on their behalf!

 

[indienoise]

Um. I totally get why they would cancel your appointment. Doesn't sound like your appointment really got yanked for the loss.
Sure, I've got one carrier that clearly really wants as much of my business as possible, and I happily write most of it with them.
However, anytime I can, I still go out of my way to get business to my other carriers, especially if they haven't gotten much from me lately. Even if it costs me a couple percent.
Yes, I want the lion's share to goto the carrier who pays me the best, especially if they are the best for for most of my clients.
But if my book with another carrier was slowly (or not so slowly) dying, I would understand if they no longer wanted to continue doing business.