Iroquois comments?

broberts · Post by **broberts** » Wed Jul 26, 2006 9:54 am

In addition to looking at SIAA & Smartchoice, among others, I have talked to Iroquois about our proposed start-up agency. Anyone use them or tried? We want to have a good choice of carriers for commercial We are in Indiana. They were interested.

Thanks

92builder · Post by **92builder** » Wed Jul 26, 2006 9:57 am

I plan on joining them within the month. I really like the ppl I've talked to and what I've seen on paper. I think they're 110% on the ball.

broberts · Post by **broberts** » Wed Jul 26, 2006 10:00 am

I meant to say we want a good choice for commercial in addition to personal for existing financial planing clients.

GrowthAgent · Post by **GrowthAgent** » Fri Jul 28, 2006 8:17 am

Be careful about SIAA & Iroquois......the contracts lock you in. Its very tough & expensive to leave if you ever choose too.

Smartchoice, InsuranceNoodle, Agent Secure, Superior Access give you more freedom.

broberts · Post by **broberts** » Fri Jul 28, 2006 9:44 am

Growthagent, can you advise which if any you use? This information has been invaluable to me and I'm taking it into consideration. I have especially seen many posts, good and bad, about agentsecure.

With a startup, I will have no minimums and I definetely need some commercial carriers to start with as I have contacts in that market as well.

MANY THANKS!

92builder · Post by **92builder** » Fri Jul 28, 2006 10:54 am

growth, are you speaking from experience or just about clusters as a rule?

PIA Jack · Post by **PIA Jack** » Fri Jul 28, 2006 11:18 am

I guess I get a little upset at the people who advise that a startup agent shouldn't consider a network like SIAA or Iroquois. In my opinion these are short sighted people who don't want to make an investment in their future. I know about SIAA so I'll address them. There is a fee to join, but it is flexible, can be paid over a period of time, and in the scheme of things, is affordable. The start up agent has 10 or 12 top name companies they can use out of the box. In addition to receiving higher commissions than are usually available elsewhere, they receive profit sharing at a local level and overrides at a national level, with volumes as little as $50K with a carrier. That can put an additional $10K to $15K in your pocket in each of the first few years. More after your volume grows. It is a fixed term contractual relationship. SIAA has been doing this since about 1983 and most people, when their term expires, renew for additional terms because of the value SIAA brings to their agency. Would you rather be a little guy on your own swinging in the breeze, or part of a 1950+ member network writing more than $4 Billion in premium? Think long term. Invest a little now to make a lot more down the road.

92builder · Post by **92builder** » Fri Jul 28, 2006 11:30 am

Well put, Jack.

I would agree also that clusters are a way to go, but not every group can offer you the same benefits; when I started to look at Iroquois for example, their website listed about 8 companies that I could use. When it was all said and done, due to my geographic location, I ended up with one company to write for. However, that one company could offer me something I could get nowhere else, so I plan on joining.

Don't think either that you have to be tied to one certain group. Once my agency is up and running, it looks like I'll have agreements in place with two groups as well as my own direct contracts. I'll be picking the groups to fit certain niches and situations.

hrdwrkr · Post by **hrdwrkr** » Fri Jul 28, 2006 11:37 am

Because you are on the subject...

I would be interested in hearing some of your comments on what is better. It seems to join a cluster PIA, SIAA, NIA, etc. you have to deal with "unfair" exit terms. Such as having to buy your book back at 3.5% when you leave. But you get much higher commissions.

If you use InsuranceNoodle, Agentsecure, Superior Access, etc. you get much lower commissions, but you can leave with virtually no penalties.

I need the higher commissions to compete when it comes to hiring Agents, but someday I want to be direct with as many carriers as my incoming business will support. At some point I will want to move my current book to a direct appointment, the cost of doing that could be outrageous.

My question is two fold:

1. Does any one know of a cluster in California that does not have ridiculous exit terms?

2. Your philosophy on which is better: higher commissions or the ability to move a large book of business without penalties.

Porter · Post by **Porter** » Fri Jul 28, 2006 12:39 pm

I had to face this very same issue when I first went independent. Everybody has there own set of circumstances. How much capitol you have, location, support, products you intend to sell, experience etc. PIA said, "Think long term. Invest a little now to make a lot more down the road"

GrowthAgent · Post by **GrowthAgent** » Mon Jul 31, 2006 6:03 am

I've used both SuperiorAccess and The Noodle. I've read the contracts for SIAA. SIAA is a fine group don't get me wrong. But if you want 100% control of your business then I would not go that way. I agree w/ the comment made by Porter.

missagentNC · Post by **missagentNC** » Mon Jul 31, 2006 11:37 am

I agree with GrowthAgent. Be careful about who you use. I am currently an Iroquis Agent, and while they can be beneficial, I found that if I want to start a direct contract with one of their carriers, I have a 2 yr waiting period before I can write any business through them. So in essence, I would have to roll that book of business from that carrier, cancel my contract, wait 2 yrs and then I can try to sign that carrier if I so choose. A lot of trouble, but for a start up agency, or someone wanting to get into commercial lines, they are a good bet. I prefer them to SIA. Have you checked out Keystone? Are they available in your state? Another downside to clusters: I can't write away business from another agency that is a member of that cluster. That is the biggest reason we chose the cluster we did, because no one else around used them. I didn't see much point in signing a contract that forbade me from soliciting business from virtually every agency in the tri-county area! A cluster is good as long as you can use them as a stepping stone to build your book to qualify for direct appointments!

ewguva · Post by **ewguva** » Mon Jul 31, 2006 1:30 pm

This is a great conversation with good points on both sides.

If I were starting an agency from scratch, which I did 15 years ago I would not do business with ANY organization that didnt allow me to own my book of business free and clear and have the ability to get my own carrier contracts at any any time. There should NOT be an exit fee or penalty for leaving the aggregator. They earned their money while you produced business for them.

As for commission percentages. There are aggregators out there that will pay you 15% for BOP and Commercial Package business and charge you $100 or less per month to do so.

coolnmellow · Post by **coolnmellow** » Thu Aug 17, 2006 7:15 pm

My choice would be to call Agent Secure, Superior Access and Insurance Noodle their fees are lower and you can negotiate commission. I would try all 3 because you can get a real comparison.

sanddog1 · Post by **sanddog1** » Thu Aug 17, 2006 9:01 pm

Ok I check out this site. http://www.Iroquoisgroup.com I must say its very well put together but offers no markets in CA or any other western State.

SO move on most of there appointments are nothing to write home about http://www.Iroquoisgroup.com

Iroquois comments?

Iroquois comments?

Iroquis Comments

Cluster vs Wholesaler