Adivice needed on a Career Change

[Big Dog]

rcenters - one of the major reasons that a carrier will decline a risk is because of their reinsurance treaties. The treaties may have certain restrictions in place with respects to certain types of business. Exposures to radiation, blasting, etc are the extreme examples.

Yes, the carrier could go out and get facultative reinsurance - however, oft times a carrier will choose not to do that primarily because there are surplus lines carriers that will write the coverage for less than what it will cost to get fac.

[Island Girl Agent]

Mike, think about moving to Hawaii...I know several carriers who are always looking for someone with a little experience. The job market over here is still very open...and you'll find that family (we call it "Ohana") atmosphere you're looking for...good luck!

[kevinraz]

RCenters, it's pretty easy. If something does not fit our underwriting guides and there's not enough of a reason for me to make an exception I say "no, thanks".

As part of my service to my agents I then try and guide them to a place that might be able to help them place the coverage they need.

There's a reason my company has been around for well over 100 years. Sometimes those small items are the ones that lead to big claims.

Big Dog's also got a great point on the reinsurance issue. That does drive a lot of what we do though the agents rarely see that side of the transaction.

[cid]

I'm in a similar point in career as mike...but slightly different. Been in agency side for about 8 years doing customer service and am looking for a bit of a change. My best skill is casualty coverage analysis(and negotiation)in general and also contract review for insurance compliance(read, contractors or any others who have to meet strenous insurance requirements).

Is there any such position, be it at an agency, wholesaler, insurance consulting firm, carrier or even a law firm specializing in insurance contracts, wherein someone could have their primary duty be exactly that, analyzing coverage, explaining, reviewing contracts and offering necessary upgrades to meet them or helping negotiate with the requiring party if unavailable? and if at an agency, without being part of general cust svc which would be bogged down with tedious vehicle changes and the like(the dreaded - "I got a bill")...?

The only place I can offhand imagine that this could exist at is mega-market share contractor ins agencies that might have enough of them to offer a full time position doing such a thing, though I was hoping such a thing might exist at a carrier. any thoughts?

[LadyBroker]

You may be better suited to risk management at a large client, like one of your big contracting risks. Carriers don't usually have this type of position, and wholesalers don't, either. You could also explore a position within one of the alphabet houses.

However, I will caution you this...if you are not a revenue-producing employee, then you are an expense. When times are good, they will carry you. When times are bad, you become expendable, as you bring no revenue to the table. If you decide to go risk management, be sure you have production capabilities, too. IMHO.

[cid]

For someone with advanced coverage ability and experience, as well as experience matching risks with eligibility guides, but having never touched internal rating(loss cost modifiers etc) how might I fit in starting at a company in underwriting? I think I'd be overqualified to be an underwriting assistant yet perhaps due to the rating, underqualified for underwriting(or do underwriters not have to get involved with rating formulas nowadays?)

[crossins]

"Is there any such position, be it at an agency, wholesaler, insurance consulting firm, carrier or even a law firm specializing in insurance contracts, wherein someone could have their primary duty be exactly that, analyzing coverage, explaining, reviewing contracts and offering necessary upgrades to meet them or helping negotiate with the requiring party if unavailable?"

I do that, and I am a producer in a large p & c agency.

[LadyBroker]

I have following this thread from the beginning, and would advise this.....if you want to change careers, get off this board, get out on some interviews, and actually do it. Talk to the carriers, see what they think, see what they offer you. All the rest is just wasted time and energy.....

You are the only person living your life, and you only get one go-round. Make the most of it.

Like Nike says....JUST DO IT!!!!

[T]

I am considering the switch from the agency side to the wholesaler side. Seems like it would be a lot nicer to deal with a bunch of agents than the general public....no more cold calling or those phone calls "it is your fault I did not pay my bill and got cancelled!". I think they make more money too, does anyone know?

[hdorland]

You'll make, on average, about 30% of the commission that your employer "retains" after paying the retailer who brings you the risk.
So - if you want to make $100k, you will have to broker about $600k in commissions to do that.

Hope that helps.

[T]

$600k brokered commission sounds like a good goal, but do you happen to know what the average is?

[LadyBroker]

T,

I am a wholesale broker. While it is true that you no longer deal with the general public, you would be surprised at how uneducated retailers can be. The large alphabet houses aside, your independent retailer sells on one thing...price. Not forms, not coverage, not anything other than Price. If you are considering making a move, and I have to tell you, I have been doing wholesale broking for 10 years now, you want to really research the wholesalers in your area, and also consider, what do you bring to the table? A good wholesale broker adds value to the transaction, not just slapping a cover sheet on an application and blasting it out to the marketplace.

If you want to talk more specifics, PM me and we'll chat.

[wlunday]

Geezzz, LadyBroker! Cynical doesn't even start to describe you!

As the long-time owner of a multiline agency I associate with lots of other agency owners that would take your comments about "us" retailers as a rude insult.

Maybe it's YOUR choice of the retailers you deal with or attract. As for me and my agency, I am constantly working to better the abilities of my crew as well as myself. I think most other retailers also promise the same to their customers... and deliver! While price is always a consideration, to say ALL we do is sell price...

Swymmer

[hdorland]

No... but a lot of the successes are going to be in direct proportion to the capabilities / markets / binding authorities of the wholesaler, and how large and loyal this person's retail following is.
A large following but no products, or the reverse, and success will be greatly diminished.

[mike40829]

I would have to agree with Lady Broker on this issue. I've been in retail business for about 4 years and I constantly receive requests from clients to beat a specific quote on just price. I try to explain to my clients the holes in coverages, importance of financial strength when it comes to an occurrence based policy and the payment of claims, deductibles, co-insurance, and most importantly reliable service. None of this matters to these types of customers.

The fact is price still sells and as long as consumers fail to compare policies, financial strength and history there will always be Agents that sell on price.