Posted On: August 22, 2006, 12:19 pm CDT

Posted By: Jacqueline

Since I am a relatively new start up independent agency, I am stuck going through MGA's for the types of products you mentioned and suggested offering, which has not worked out at all for us or for the potential insureds.

Although I have built an impressive personal lines book for being a scratch agency, the revenue we are generating is still not impressive enough for the competitively priced carriers who DO offer E & O, malpractice, and the other commercial products to even take a look at us for direct appointment.

In going through the MGA's, I have gotten nothing but excuses as to why they can't serve any given potential customer whose application and or quote request I sent in, and often had to hound them for weeks just to get a response only to be told, "The premium doesn't mean the minimum guidelines, we don't offer a product for that type of customer, etc" either that or if they DO actually have a program, the premiums are not competitve enough so I can't sell it. I have run into this whether trying to get a small BOP or for getting a small contractor's workers comp account.

So I have basically given up getting any commercial accounts or lucrative E&O/malpractice type of accounts until I am making enough money to get those carriers who are competitive and who will do direct appointment to accept our agency for appointment so we don't have to fool around with MGA's that talk the talk but don't walk the walk, if you know what I mean. The worst one has been that Appalachian Underwriters. They look good on the web and they tell you they can find a competitive program for your insured, then they turn around and say, "sorry, we don't have a fit for so and so." Cluett for the workers comp seems pretty good, but unfortunately they do strictly workers comp, no other commercial insurance products, no malpractice and no E&O. Also, the lawyers who are not hurting and who have money (show me a poor lawyer and I've got a bridge to sell you for a wooden nickel)are in a position to get their malpractice and E&O anywhere so a scratch agent like me can't possibly compete in getting their business because I have to go through MGA's which do not have the most competitive prices for those programs and products - even when they DO say they can find a fit......frustrating and maddening. It's like the same old catch-22 of you need experience to get the job/appointment/contract etc, but if nobody ever gives you a chance, how the hell are you supposed to get the experience? Same deal applies here. I needed to expand into the preferred/ultra-preferred but carriers like Travelers (which are very good in how they handle claims and are very competitive rate wise for the customer)won't look at small-time agents with less than 3 years into the independent agency business. I checked out the feasibility of going through one of those groups like Brooke and Iriquois Group, but there are commission pay issues plus high costs becuase they want you to basically finance an agency through them - WITHOUT an existing book, which is unrealistic and not do-able. So I just keep plugging away with the direct appointments I DO have for personal non-standard lines for auto, home etc until hopefully the bigger players will let me as a little person onto the playing field.