What is your broker of record policy?

[AgencyEquity]

How aggressive do you go after a BOR? Do you prefer to do a BOR than to quote another carrier? How do your clients react to a BOR request, are the hesitant or have you convinced you would serve them better? If someone approaches you to transfer in their policy, is that a red flag? I say this because often times, those who request you to do a BOR may have some issues, may be controlling, or have certain demands that the previous agent did not want to put up with. Speaking of a Broker of Record, have you automated your BOR system? If not, give this a try http://www.agencyequity.com/broker_of_record_letter, it will help you produce a BOR letter fairly quickly and efficiently.

[Big Dog]

Wow...golly. Could you get any more self-serving?

[AgencyEquity]

Wow...golly. Could you get any more self-serving?

I know, how awful is it to share some thoughts and promote a business. I like your idea that insurance professionals should sit at their desk and wait for the phone to ring. Let's deam marketing illegal!

[RKunz2]

How aggressive do you go after a BOR? Do you prefer to do a BOR than to quote another carrier? How do your clients react to a BOR request, are the hesitant or have you convinced you would serve them better? If someone approaches you to transfer in their policy, is that a red flag? I say this because often times, those who request you to do a BOR may have some issues, may be controlling, or have certain demands that the previous agent did not want to put up with. Speaking of a Broker of Record, have you automated your BOR system? If not, give this a try http://www.agencyequity.com/broker_of_record_letter, it will help you produce a BOR letter fairly quickly and efficiently.

Dear AgencyEquity,

There's a very real and specific need for BOR letters; however, I find personally that they are largely abused in the marketplace. Thru mis-direction and by taking advantage of uninformed buyers, some brokers obtain these documents lazily to avoid the work of actually having to compete and underwrite a client. I've used perhaps a dozen BOR's in the last couple years and I know agents that go thru a dozen a month to 'get' clients. Well, good for them, I hope they have the ability, expertise, and desire to properly serve those clients. As for me, I like to keep the gloves on as much as possible and keep it a fair fight. Inform and educate the client, let them make the decision. Strong-arming, bullying, and scare tactics just don't have a place in our profession and to be brutally honest, I'm kind of tired of seeing it.

But, that's just my opinion...

[FFA]

Personally, dont like BOR ed business. Prospect usually dont like to take the time to sit down and review top to bottom and receiving agent opens him self up to an E & O issue. They better have a good reason for me to take a BOR and heaven forbid they slam another agent I am aware of, a house that I know takes care of their customers.

When I get a BOR account, its usually taking someones head ach on.

So, terms of my house accepting a BOR would be to sit down and chat - not for 10 minutes, but a ling drawn out presentation on all the bells and whistles. I am not a bill collector. Pay on time all the time every time.

Then I will agree to take BORed account. With that being the policy, I rarely get one much less an actual signed request.

[bond girl]

This recently became a pet peeve of mine. I have a certain competitor who misuses BOR letters as a way of controlling the marketplace. When there is competition for a new account, this agent will flood the markeplace with BOR letters from the unsophisticated customer, thereby blocking competing agents from working with certain carriers. Some of the markets are wise to these tactics, but others either are not, or look the other way. Either way, I'm not a fan of BOR letters, and in ten years, have only used them to defend my business, not acquire new business.

[SFOInsuranceLady]

Personally, I don't like using BOR's. The only time we use one is if the client is totally dissatisfied with the other agent/broker and begs us on bended knee. Probably only used 3 or 4 in the last 6 years or so. If we do utilize a BOR, we still have the client complete an "updated" application and proceed to underwrite the client as if they were a new customer. In a sense, they are a new customer. Not to the carrier, but to the agent. If they are sincere and really need to change agents, they will comply. If they are not willing to "do the work" over again then they are probably going to be trouble, so they are better off staying with their current agent or going elsewhere.

BOR's open up the possibility of and E & O claim if you aren't careful. We also sit down with the client and take the time to find out what happened with the other agent, try to avoid what they did and be sure to expain coverages that they purchased or will purchase.

[AgencyEquity]

I think there are some very valid replies here, but keep in mind, if an agency was doing its job, it wouldn't lose an account to a BOR. Yes, there will be some very aggressive agent who will do anything to get a BOR, but do you really want a client who will leave you with the stroke of a pen? The best clients will not leave a good servicing agency on a BOR, however I think they will if the agency was not doing its job. Also, BORs are done because people move or because people want to consolidate all their policies with one agency. Finally, some Life & Health carriers do not allow BOR, with an agent fully knowing this, I guarantee you there will be some abuse in providing quality service, most especially if someone is stuck with a policy for underwriting reasons. Competition is healthy, however brokers should not abuse it and should do a BOR for the right reasons. I think help maintain high professional standards in our industry.

[e-bit]

I only do a BOR if I get them to complete a new application to go with it, along with copies of their current policies. I don;t process it unless I know any problems and fix them before it's my problem.

[earlybird]

As a wholesaler and Lloyd's cover holder, we have a niche market and many agents competing for the same business. We do not accept BOR's. When we did, we spent too much time with 5 day letters back and forth, so now we refuse them. I have not had a problem with our existing agent force, as they understand. Occassionally we have agents in conflict on new business, but they know its first application in the door that gets the quote. If you dont think it's fair, please go to another market.

[RKunz2]

As a wholesaler and Lloyd's cover holder, we have a niche market and many agents competing for the same business. We do not accept BOR's. When we did, we spent too much time with 5 day letters back and forth, so now we refuse them. I have not had a problem with our existing agent force, as they understand. Occassionally we have agents in conflict on new business, but they know its first application in the door that gets the quote. If you dont think it's fair, please go to another market.

Dear Earlybird,

You bring up an interesting point. And just to be clear, I have no false hope that this practice will ever change because it's one of those age-old practices of insurance, but I wish it would. Blocking markets just to block them out from other agents. When I/we submit to carriers, it's with the intention that the most competitive set of terms that reflect the best value and right mix of coverage for the risk will win the day. I really DON'T like asking my underwriters to 'practice quote'. We all have better things to do with our time. Unfortunately, I see a lot of practicing quoting going on; agents that only submit to certain markets because they don't want anyone else going there (afraid of the competition), but they have no real intention of ever giving that market a fair shot at the business. I even see agent's structure coverage in a way that they know isn't beneficial for the simple purpose that it increases pricing and justifies their position to put the risk with 'their' primary (contracted/bonused) carrier. It's just my opinion, but I don't think that's a constructive way of doing business.