The same problem exists in Florida with our Citizens Insurance Company. Agents don’t want to put clients in with Citizens, but the options are severely limited as to where to place property coverage for people located in the windpool. It really has nothing to do with the commission rate.
Lowering the commission rate however, will allow the other standard markets writing in Texas to do the same.
Writing business with TWIA is done to help our clients. If they cut commissions; good luck finding an agent to write those $1000 premiums, which is your standard home. Consider a tiering of commissions. Agents will not write business if they lose money doing so. TWIA is not easy to do business with; new business or renewals.
I place business with TWIA because I have no other company that will insure wind/hail storm losses. I have one full time, well paid, producer who spends 90% of her time keeping up with my
TWIA book. If commissions are cut by more than 50%, and work load is not reduced, I’ll have to rethink how we service TWIA accounts. Lower commissions means less time and less quality service I can provide to my customers. Not that I want to reduce service, but I would have to to stay profitable.
We South Florida agents feel your pain. We have been making 5.5 % to 6.8% commission, OMG the BS we have to put up with Since 1993 . Only good thing about it is that in the past 15 years we have become property appraisers, roofers, contractors, psychiatrist babysitters, oh wait I forgot one thieves.
What did these idiots do, hire a bunch of California Dept of Ins. jerks that think an agent writes insurance because he is independently wealthy and doesn’t need an income.
If TWIA cuts commissions the market might follow, and I think this ultimately would reduce options and availability for insureds.
The consultant also recommends outsourcing everything to an MGA. Adding a middleman would increase costs. After all, an MGA isn’t going to handle all underwriting, policy processing and agency management out of the goodness of their heart. The article suggests that such an MGA will ‘attract and access new wind carriers and capacity’ — how so? What would this MGA do that would bring capacity into the market that isn’t already here? Why would a carrier who doesn’t currently write coastal wind suddenly decide they want to get into this market especially when the MGA would be the one underwriting the coverage? It doesn’t make sense to me, but feel free to call me a fool and tell me why it does.
Speaking from experience (Florida), Texas agents will continue to use the TWIA even if it cuts your commissions, because you have to. You don’t have a choice because the consumer will want the best deal, and because you still want the revenue.
We place the business with TWIA because we have no other choice. If they cut commissions, they need to start doing the billing, faxing mortgages, mailing applications, date stamping mail, running to the post office, etc. and then there is the follow up with photos, customer statements etc. These policies are not a walk in the park.
How about limiting some of thier exposure by placing ACV on all roofs. Just like tires are on cars they are not intended to last forever. Then Insured’s will stop wanting thier 10-12 year old roof replaced everytime the wind blows.
TDI and your elected officials are to blame for all of this, they have allowed the large insurance companies to cap their loss exposure rather than being a percentage of business written. They use to have to write along the coast to reduce their exposure in the TWIA loss pool, but no longer. Therefore, there is no reason for the large companies to write wind in first tier counties any longer. Now that the WPI12 has been introduced many State Farm customers will not find coverage at all.
I don’t think commissions has anything to do with why agents place business with TWIA.
Why do you think agents place business with TWIA?
They place business with TWIA because there is no other place to get the coverage. Believe me, if I had any better place to acquire coverage I would.
The same problem exists in Florida with our Citizens Insurance Company. Agents don’t want to put clients in with Citizens, but the options are severely limited as to where to place property coverage for people located in the windpool. It really has nothing to do with the commission rate.
Lowering the commission rate however, will allow the other standard markets writing in Texas to do the same.
Writing business with TWIA is done to help our clients. If they cut commissions; good luck finding an agent to write those $1000 premiums, which is your standard home. Consider a tiering of commissions. Agents will not write business if they lose money doing so. TWIA is not easy to do business with; new business or renewals.
For all of the BS that you go through to put a policy with TWIA, they ought to be paying 25%.
Me thinks they need to become a direct writer as they sure as hell don’t appreciate the agent!
I place business with TWIA because I have no other company that will insure wind/hail storm losses. I have one full time, well paid, producer who spends 90% of her time keeping up with my
TWIA book. If commissions are cut by more than 50%, and work load is not reduced, I’ll have to rethink how we service TWIA accounts. Lower commissions means less time and less quality service I can provide to my customers. Not that I want to reduce service, but I would have to to stay profitable.
We South Florida agents feel your pain. We have been making 5.5 % to 6.8% commission, OMG the BS we have to put up with Since 1993 . Only good thing about it is that in the past 15 years we have become property appraisers, roofers, contractors, psychiatrist babysitters, oh wait I forgot one thieves.
What did these idiots do, hire a bunch of California Dept of Ins. jerks that think an agent writes insurance because he is independently wealthy and doesn’t need an income.
If TWIA cuts commissions the market might follow, and I think this ultimately would reduce options and availability for insureds.
The consultant also recommends outsourcing everything to an MGA. Adding a middleman would increase costs. After all, an MGA isn’t going to handle all underwriting, policy processing and agency management out of the goodness of their heart. The article suggests that such an MGA will ‘attract and access new wind carriers and capacity’ — how so? What would this MGA do that would bring capacity into the market that isn’t already here? Why would a carrier who doesn’t currently write coastal wind suddenly decide they want to get into this market especially when the MGA would be the one underwriting the coverage? It doesn’t make sense to me, but feel free to call me a fool and tell me why it does.
Speaking from experience (Florida), Texas agents will continue to use the TWIA even if it cuts your commissions, because you have to. You don’t have a choice because the consumer will want the best deal, and because you still want the revenue.
We place the business with TWIA because we have no other choice. If they cut commissions, they need to start doing the billing, faxing mortgages, mailing applications, date stamping mail, running to the post office, etc. and then there is the follow up with photos, customer statements etc. These policies are not a walk in the park.
They have no ideal what we do for our customers to get and maintain coverage with TWIA.
I will retire. Talk about a jobs killer.
How about limiting some of thier exposure by placing ACV on all roofs. Just like tires are on cars they are not intended to last forever. Then Insured’s will stop wanting thier 10-12 year old roof replaced everytime the wind blows.
TDI and your elected officials are to blame for all of this, they have allowed the large insurance companies to cap their loss exposure rather than being a percentage of business written. They use to have to write along the coast to reduce their exposure in the TWIA loss pool, but no longer. Therefore, there is no reason for the large companies to write wind in first tier counties any longer. Now that the WPI12 has been introduced many State Farm customers will not find coverage at all.