Can you get different rates for same insurer?

[Detroitgirl]

I am new to insurance, so this may seem like a dumb question.
If I become an independant agent, should I expect major problems because the rates a client would be quoted can be significantly different from agency to agency ( assuming facts the same; carrier and statistics).

I don't think agencies have any significant control over the rates. It's mainly being able to market to customers and close the deal. Ok, am I daydreaming?

I expect to focus on P & C.

[ocbroker]

In my experience, the discretionary credits that carriers apply can be different depending on the agency. The underwriters who I have a good relationship with will sometimes stretch for me when i need help on pricing. I would be naive to think the same thing wasn't happening in reverse sometimes.

[saabins]

I agree. Your relationship with the underwriter will influence the rate as well as your agencies volume with that particular carrier. If you are a high volume agency with them, you will get the best rates.
I have had instances where I have gotten 2 different quotes with the same carrier thru 2 difference wholesale brokers. And this is based on the same app.
It happens all the time so you really have to know your risk and match it to the carrier/wholesale brokers.

sandra
sandras@saabinsurances.com

[mszleszinski]

Absolutely! We run in to this situation often especially with surplus lines carriers since they are not restricted to filed rates. Underwriters are usually given underwriting "guidelines" not mandates to work within. Also, some underwriters are more conservative while others will take bigger risks. It comes down to experience, personality and relationships. As an underwriter gains more experience, they are usually given a higher level of authority to work within once it is proven that they are able to meet their company's production and profitability goals. Normally the top producers and brokers that provide them with a good flow of "realistic" opportunities will be assigned to their best underwriters. If a producer submits just to block markets, it will not take an underwriter very long to figure that out and often times, the submission will end up at the bottom of the pile and may never get looked at prior to the need by date.

[SFOInsuranceLady]

First of all, no question is "dumb". Second of all, I totally agree with Sandra and OCBroker, but I'd like to take it one step further, though. Not sure which state you are in, but in California, if a broker/agent submits an applicaiton for a quote with company "A", and another broker/agent also submits to the same comapny, there should be some "cross referencing" within the company and any future requests for quotes should be blocked. Two different agents, ethically speaking, should not be able to obtain a quote from the same carrier. Even with on-line rating systems. This is a usual practice. I know.....I've been "blocked" many times. So, the trick is, to find out if your client has already been in touch with other brokers and see which carriers have quoted. This is also a great way to screen out clients that have contacted a ton of agents already, so as to not to waste any of your time. Good luck!

[Detroitgirl]

Thanks for the responses. It's been very informative. I will probably go with a franchise or try to buy a small, existing book of business. I think I might spend less time in the school of hard knocks. I am though, a little discouraged by the high prices for existing books.

[mgoodfriend]

One assist is to have a homeowner install a professional monitoring system which will qualify them for anywhere between a 8-12% discount on their policy (up to 20% with the more expensive ones). These systems range from the ADT types which run into the thousands to the FireEar type (measures just fire, freeze and power outages) which is in the $80 a year range (plus the one time cost of the monitor around $100). Hope this helps.

[mgoodfriend]

It is rare, but we know of one insurer that is giving a higher discount to high risk properties (such as second homes, mobile homes, etc.) but it took special filings with the state to start the same. In general, each company has a set percentage discount for professional monitoring and differentiates for fire, or intrusion and/or the combination of both.