The larger the client, the more need for expertise and service. More Gross Receipts, more certificates and Additional Insureds'.
Does your whole agency want to work for free Scott?
Roseville, CA. [/b]
Agents - Your Clients Don’t Trust You
Moderators: Josh, independent guy
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scott
- Insurance Journal Addict
- Posts: 309
- Joined: Thu Sep 22, 2005 6:35 pm
- Location: Mississippi
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Sean,
Working on a fee basis does not mean you work for less. You get paid for your work and expertise, independent of a client's purchase of insurance. You get paid for value provided to your client - not the sale of a policy.
How often have you done a great job for a prospect only to end up not writing the business after hours and hours of work? How often have you had your work copied by the current agent leaving you with bupkis?
In a fee compensated system that shouldn't happen. Why should you work for free?
Working on a fee basis does not mean you work for less. You get paid for your work and expertise, independent of a client's purchase of insurance. You get paid for value provided to your client - not the sale of a policy.
How often have you done a great job for a prospect only to end up not writing the business after hours and hours of work? How often have you had your work copied by the current agent leaving you with bupkis?
In a fee compensated system that shouldn't happen. Why should you work for free?
Scott Simmonds, CPCU, ARM
Insurance Consultant
Insurance Consultant
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Dope Smoking Agent
- Insurance Journal Enthusiast
- Posts: 9
- Joined: Thu Feb 02, 2006 6:45 pm
- Location: California
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scott
- Insurance Journal Addict
- Posts: 309
- Joined: Thu Sep 22, 2005 6:35 pm
- Location: Mississippi
- Contact:
DSA,
Is the waste you refer to the certificates, etc mentioned by Sean or the practice quoting I mentioned?
In a fee environment insurers compete by providing value to your client. Who has the best claim service, local service centers, web-based policy holder services, advanced loss control services, etc. Which insurer has the best coverage form, the best price? Which insurer is the easiest for the client to do business with?
A fee system removes any incentive (or the perception of incentive) for you to place business with an insurer other than what is most valuable to the insurance buyer.
That's why I maintain that some clients will find an agent who works on a fee basis more valuable than an agent working for commissions.
Is the waste you refer to the certificates, etc mentioned by Sean or the practice quoting I mentioned?
In a fee environment insurers compete by providing value to your client. Who has the best claim service, local service centers, web-based policy holder services, advanced loss control services, etc. Which insurer has the best coverage form, the best price? Which insurer is the easiest for the client to do business with?
A fee system removes any incentive (or the perception of incentive) for you to place business with an insurer other than what is most valuable to the insurance buyer.
That's why I maintain that some clients will find an agent who works on a fee basis more valuable than an agent working for commissions.
Scott Simmonds, CPCU, ARM
Insurance Consultant
Insurance Consultant
National News
Independent Agents Grew Market Share by $12 Billion in 2004
March 20, 2006
In 2004, the property-casualty market grew to $457.68 billion in direct written premium, with the overall market increasing by $20.69 billion. During this time, the independent agency system amassed a nearly $12 billion increase in production, accounting for almost 60 percent of the national increase, according to the Independent Insurance Agents & Brokers of America's (IIABA) 2004 market share study.
"The results of this report clearly show that the independent agency system is flourishing," says IIABA CEO Robert A. Rusbuldt. The results of the 2004 market share study reinforces the consumer and business acceptance of the independent agency and broker distribution model, and emphasizes the very real opportunities for growth that are present for independent agencies and brokers, IIABA stated.
The 2004 market share study marks the 10th year that the IIABA has contracted with A.M. Best Company to supply it with year-end industry market share and company expense data. IIABA analyzes this data annually to assess the state of the independent agency system.
"Independent agents and brokers continue to build on their market share, and if they keep working towards adopting new, efficient technology, strong marketing and branding strategies, and use their commitment and knowledge of their communities to their advantage, they will continue to build upon their present success. Independent agents and brokers have proven time and time again that they are innovative, resilient, and diligent in serving their customers and growing their businesses," Rusbuldt said.
Following recent trends, research revealed that there are efficient companies using each type of distribution system. The IIABA study contends that efficient independent agency writers are able to deliver insurance just as cost effectively as the captive agent writers and many of the direct companies, and in some cases, even more so.
Personal lines
Independent agents and brokers and their carriers were again able to increase their personal lines market share slightly in 2004, according the the market share report. However, they continue to control only slightly more than one-third of the market.
"The direct companies will remain aggressive competitors for both the captive agent writers and the independent agency companies, but independent agencies should experience their best opportunity in decades to continue to gain a larger market share," according to the report.
"Independent agencies have the advantage of their community connections to counter this competition, especially if they focus on personal lines as a separate profit center, and not merely as an accommodation," said Madelyn Flannagan, IIABA vice president of education and research. "Growth can be achieved with focus, marketing strategies, improved technology, and new innovations."
Commercial lines
The independent agency system continues to have a dominant position in commercial lines in many states and has done a good job maintaining this position for much of the past decade. The big variances among the states, however, indicate that there are many opportunities for independent agents and brokers to continue to grow their commercial lines share in wide variety of commercial markets.
Even though growth in both commercial lines and personal lines has slowed from the growth of the past three years, independent agents and brokers are reaping a significant dividend from this growth. The larger the market share they have in a particular market, the larger the dividend they accrue.
The growth in commercial and personal lines premium and market share in 2003 and 2004 resulted in $39.52 billion of new premium written by the independent agency distribution system.
All of the data in IIABA's report comes from A.M. Best and is printed with its permission.
Find this article at:
http://www.insurancejournal.com/news/na ... /66619.htm
© 2006 Wells Publishing, Inc. Reprint Information | Home Search | Contact Us
Independent Agents Grew Market Share by $12 Billion in 2004
March 20, 2006
In 2004, the property-casualty market grew to $457.68 billion in direct written premium, with the overall market increasing by $20.69 billion. During this time, the independent agency system amassed a nearly $12 billion increase in production, accounting for almost 60 percent of the national increase, according to the Independent Insurance Agents & Brokers of America's (IIABA) 2004 market share study.
"The results of this report clearly show that the independent agency system is flourishing," says IIABA CEO Robert A. Rusbuldt. The results of the 2004 market share study reinforces the consumer and business acceptance of the independent agency and broker distribution model, and emphasizes the very real opportunities for growth that are present for independent agencies and brokers, IIABA stated.
The 2004 market share study marks the 10th year that the IIABA has contracted with A.M. Best Company to supply it with year-end industry market share and company expense data. IIABA analyzes this data annually to assess the state of the independent agency system.
"Independent agents and brokers continue to build on their market share, and if they keep working towards adopting new, efficient technology, strong marketing and branding strategies, and use their commitment and knowledge of their communities to their advantage, they will continue to build upon their present success. Independent agents and brokers have proven time and time again that they are innovative, resilient, and diligent in serving their customers and growing their businesses," Rusbuldt said.
Following recent trends, research revealed that there are efficient companies using each type of distribution system. The IIABA study contends that efficient independent agency writers are able to deliver insurance just as cost effectively as the captive agent writers and many of the direct companies, and in some cases, even more so.
Personal lines
Independent agents and brokers and their carriers were again able to increase their personal lines market share slightly in 2004, according the the market share report. However, they continue to control only slightly more than one-third of the market.
"The direct companies will remain aggressive competitors for both the captive agent writers and the independent agency companies, but independent agencies should experience their best opportunity in decades to continue to gain a larger market share," according to the report.
"Independent agencies have the advantage of their community connections to counter this competition, especially if they focus on personal lines as a separate profit center, and not merely as an accommodation," said Madelyn Flannagan, IIABA vice president of education and research. "Growth can be achieved with focus, marketing strategies, improved technology, and new innovations."
Commercial lines
The independent agency system continues to have a dominant position in commercial lines in many states and has done a good job maintaining this position for much of the past decade. The big variances among the states, however, indicate that there are many opportunities for independent agents and brokers to continue to grow their commercial lines share in wide variety of commercial markets.
Even though growth in both commercial lines and personal lines has slowed from the growth of the past three years, independent agents and brokers are reaping a significant dividend from this growth. The larger the market share they have in a particular market, the larger the dividend they accrue.
The growth in commercial and personal lines premium and market share in 2003 and 2004 resulted in $39.52 billion of new premium written by the independent agency distribution system.
All of the data in IIABA's report comes from A.M. Best and is printed with its permission.
Find this article at:
http://www.insurancejournal.com/news/na ... /66619.htm
© 2006 Wells Publishing, Inc. Reprint Information | Home Search | Contact Us
Scott's dream
Scott,
where is your benefit if insurance agents and brokers charge fees? I know there is one... I am confident, that until all other competitors begin charging the way you do, you will continue to get your clock cleaned.
Scott, did you fail as an agent? Obviously, you did. I am sorry for your bad experience. I am sorry you could not sell products the way they have been sold for 100 years. You obviously did not provide any benefit to the client. I do not tell clients what I make anymore than I require detailed tax returns from them for most policies.
Scott, get another job. You are completely failing at your current one.
Sorry you feel you cannot compete on a level playing field. By the way, I would not pay you $3,500 to shop insurance for me or my business. You are too unskilled to qualify for the job.
Good luck, "Insurance Consultant",
get a real job. "all consultants are actually unemployed"
Real Insurance Broker
where is your benefit if insurance agents and brokers charge fees? I know there is one... I am confident, that until all other competitors begin charging the way you do, you will continue to get your clock cleaned.
Scott, did you fail as an agent? Obviously, you did. I am sorry for your bad experience. I am sorry you could not sell products the way they have been sold for 100 years. You obviously did not provide any benefit to the client. I do not tell clients what I make anymore than I require detailed tax returns from them for most policies.
Scott, get another job. You are completely failing at your current one.
Sorry you feel you cannot compete on a level playing field. By the way, I would not pay you $3,500 to shop insurance for me or my business. You are too unskilled to qualify for the job.
Good luck, "Insurance Consultant",
get a real job. "all consultants are actually unemployed"
Real Insurance Broker
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mccluney
- Insurance Journal Addict
- Posts: 81
- Joined: Mon Nov 15, 2004 4:01 pm
- Location: Hayward, CA
- Contact:
Scott's Dream
I have been an agent for more than 25 years. Full client disclosure. Commission plus fees. If the result is a reasonable value for services needed. I have no problem making a decent living by keeping my clients
fully informed when I feel justifed to add broker fees.
I have to admit that I am disturbed by mhutch69's attitude. I am not sure that I would want mhutch as my agent. Is not the "benefit" all about client choice?
fully informed when I feel justifed to add broker fees.
I have to admit that I am disturbed by mhutch69's attitude. I am not sure that I would want mhutch as my agent. Is not the "benefit" all about client choice?
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sanekkspb
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