SIAA vs. Cluster?

[sacman]

Haven't been on this site for a while.

Todd if your still out there and want to talk, let me know.


Steley- I agree 100% with you. SIAA is doing things right, but Volstrike is also 100% correct.
SIAA is only as good as your local MA. If it is not a good fit, you may be better off looking elsewhere.

SIAA can take on agency's of all sizes and concentrations. I'm about 95% personal lines. I left Farmers and had to start from scratch. After 3.5 years my agency is 150% of the size of my Farmers agency that took 17 years to build. In our local MA there are large commercial lines agencies that joined because of the bonus money, there are large personal lines agencies that joined to pick up additional carriers and there are quite a few agents like myself that left the captive world to start over again. SIAA can accomodate all.

[tmanning]

Steve had a great point, make sure to look at the exit terms so you are not trapped.

Pacific Interstate Insurace Brokers pays 100% commission, 90% Profit Sharing, and does not take ownership of your book. We have done over 35 start-ups.

Tiffany

[AgencyEquity]

Whether it be SIAA, a cluster or any other type of insurance agency network, the concept of this is very good for the small to medium size agency. Regardless of what they call themselves, they are basically master agencies that are a group of retail agencies under one master agency code. Most carriers now recognize these organizations, further giving a sub-code to their member agencies. More often than not, the sub-code show the member agency name, not the master agency name. For the few carriers that don’t sub-code, it will show the master agency name, though most carriers are now providing sub-codes.

How do you choose which is the best organization for you? The first step is to visit the website of those operating in the state you are in, you can find a list of these organizations and the states they operate in at http://www.agencyequity.com/insurance-agency-clusters. Review their entire website and learn as much as you can about them. Find out what their requirements are as you may not meet it. Find out what carriers they represent. Then once you find a group where you meet their criteria and they meet your criteria contact the members. Most of their websites have a listing of their members, but some don’t. If they don’t, then lookup their license on the state’s website as most states have a listing of all their appointed producers, which in a master organization, you should find them listed under “producers.” Having said that, if such organization does not have a member directory of some sort on their website, I find this to be somewhat of a red flag and while they may not having anything to hide, it sure makes it look like they do. Once you are able to find out who their members are, I would talk to the principal of at least 3 different agencies of each organization, if not more. I would not recommend talking to the agencies that are recommended by any of these organizations as you may get biased feedback. In addition to talking to existing members, you may also want to:

 Check out their licensing page on the states they do business in, you can find out who they are appointed with and get any other information that may be helpful to making your decision. In most states, you can also see a list of those they have appointed under their license.
 Do a Google search and find out what is written about the organization online. You may find articles in insurance publications or may find a something written, in an insurance forum or be able to locate an agency member’s website.
 Talk to carrier representative, they often know of the groups in your area and can make recommendations to you

Good Luck!

[Nikita137]

Does anyone have any recommendations between PIA (Professional Insurance Agency) based out of China, or PIIB (Pacific Interstate Insurance Brokers) which is local to California as clusters/networks for an independent agent?

[AgencyEquity]

I have had experience with PIIB, they are a fine organization, I am not sure of this group out of "China," I doubt any DOI will license anyone out of China or any other foreign country, something does not sound right. I have a list of nearly every cluster group on my website, there are many very good ones and as per my message above, you should do research to find out which is the best group for your situation.

[JZanders]

I'm a 15 year Farmers agent who is looking for an exit strategy and like the sound of some of these companies that pool resources. I've spent the last 7 years or so focused on the health insurance business and well while it may not be going away it's much less certain so I want to start growing the personal lines [art of my agency again.

Unfortunately I do not see a way to grow on the personal lines side with Farmers now so I'm looking at SIAA.

When I look at the markets they offer from their website, I see Allied but not Mercury or CSE which are very competitive in my area.
Does anyone know if SIAA membership currently has access to Mercury and CSE in California?

This is a great thread with some very informative posts..thanks a lot for this.

[wariline]

I believe CSE is, but not Mercury.

[JZanders]

I found out th MA I am working with at SIAA does but I'm learning Mercury is very tough to deal with, cutting commission and raising rates...OY.. The grass is always greener right. Maybe I'm just talking with the wrong people.

I'm also finding out what I thought would be a great H03 markets will not accept a lot of my client who are within 500-1,000 feet of brush. Man Farmers will right as close at 100 feet.

Allied declined to offer a quote today on a home that was in the middle of a neighborhood. There was brush maybe 1,500 feet away, several blacks..you gotta be kidding me!.

May have to re-think...keep the Farmers contract n work both sides by getting the wife P&C license to access the Independent side markets.

[uwalka03]

I am glad I found this thread, I need some assistance in deciding how to move forward with my agency.

I am an independent, been in business 4 years (ran another agency for 6 years before that). I have $250,000 in preferred personal lines, another $100,000 in nonstandard/standard personal, and another $400,000 in commercial, a mix of trucking, construction, BOPs and some E and S.

I only have one preferred personal lines market that has all $250,000, and I had a couple of serious losses the past couple of years that has brought my 4 year loss ratio to about 110%. This is partly due to the fact that the carrier was always harping on more premium, and so I placed some accounts with them that probably were not a good fit. I have been working with the carrier to clean up the book and improve underwriting, and they gave me the impression I had a few quarters to do so. But I got a call from my rep a couple of weeks ago saying they are terminating. So, will SIAA or a cluster like PIIB consider an agency like mine that has a decent amonut of business but some loss issues? I am looking to rewrite the book into another preferred market(s), and will of course scrub out some of the risks that were causing the loss issues (probably about 10% of the book).

I figure that with my size and loss issue it may be difficult to land and keep happy another preferred company. SIAA or a cluster might make sense because, as a subproducer, I will have reduced production requirements and can focus on writing and servicing quality clients.

Any feedback or recommendations are greatly appreciated.

[txagentrep]

I am a marketing representative for the ISU Network Group.
The ISU agency network are selectively appointing new agents in all 50 states. With a focus to grow outside of CA.

Key considerations when looking at a cluster be it SIAA or others and our stance.

- We are a national group with national appointments and middle market access with major carriers
- We are one of the largest in the nation verified by Insurance journal
- You Own Your Book 100% and can sell to the highest bidder as desired and keep 100% including 100% growth.
- We pay 100% of the commissions, We take no Equity position or other hold on your business.
- We pay out majority of the Profit Sharing
- We have a direct access model for most carriers, you will be working with the marketing reps and underwriters directly; no access desk 99% of the time, but carriers at times limit access not us.
- Our Exit Clause is when you let us know and we'll sign off on everything and we commit to that via our contract terms, no reasons or penalties apply.

We are happy to review options with like minded agents with a good agency and the need for a good national partner and like the independent part of independent agency.
I know as I was a successful ISU agent for many years before moving to Texas to work with ISU. We are not a fit for all agencies but if a relationship with us can't make you a new return above our cost. in fact we will tell you before you join and show you the revenue difference and service advantage of a good partnership.
Check our website for more details or to get state specific details www.joinisu.com

Peter Cross
512-423-1450

[Shawnmwalker]

If it sounds too good to be true it is. If it is true it wont last, it is a new group who have not figured out the profit margin, or it is a group that will fail at providing you one of the four prongs:

Training and support
Carrier Alignment
Transparency
or an industry leading contract. (Most fail at the training and support piece.)

Too many agencies think they can play the aggregator game and they try and they fail, and the agents that join them are upset.

Here is a good exercise. Write down all the things a well-established agency needs to do and track on a daily basis. (Conversion ratio, deposits, lead sources, Employees, comp, the right comp, the trash can, leads, their best closers/ sales people, admin, the state regs in the state(s) they do business, the carriers products, commission levels, accounting, and on and on and on. NOW DO the same thing for but for an aggregator! The List multiplies by 2000.


Groups range from Good, Better, Best. Groups should deliver on four things. (Listed above) Of the four things most agents look solely at the contract and make mistakes. They do that because the contract is quantitative. New agents disregard the other three because they are qualitative and harder to define. Don't be that agent. Take your time and define those prongs.

If I had a 2 carat diamond ring on my wife's finger and one of the four prongs was loose or got knocked off I would fix it in fear that she was going to lose the Diamond. Don't settle for establishing your small business with 3 of the four deliverables.

My wife does not have two carats let a lone one. We got married young. I have since offered to upgrade the little rock I got her, but she is sentimental and I love her for it.


Regards,
Shawn M. Walker
720.335.3799