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Amazing how someone asked for advice on joining Nationwide and others have turned this into a forum for and against Farmers.

That because some Jackass from farmers said; that farmers is a better choice then NationWide-Allied Ins. Then this post happen.. And the funny thing is, it's his first post. SO i'm thinking our Friend Scott as something to do with this discussion as he's a farmers agent. I will not elaborate on this topic any more. farmers is the lowest of carriers in CA. Don't know about Main

I thought Scott was a consultant? Now I'm confused

sanddog1 wrote:That because some Jackass from farmers said; that farmers is a better choice then NationWide-Allied Ins. Then this post happen.. And the funny thing is, it's his first post. SO i'm thinking our Friend Scott as something to do with this discussion as he's a farmers agent. I will not elaborate on this topic any more. farmers is the lowest of carriers in CA. Don't know about Main

etimer, what is an consultant? Let see someone who consults for an exposure to insurable risk. They claim to work for other then commission. Scott, claims to be just that, a consultant from the great State Maine. And he's all over the DOI as an farmers agent. If your in Sales do your homework or else.......

So is it commission agent or fee earning consultant?

sanddog1 wrote:etimer, what is an consultant? Let see someone who consults for an exposure to insurable risk. They claim to work for other then commission. Scott, claims to be just that, a consultant from the great State Maine. And he's all over the DOI as an farmers agent. If your in Sales do your homework or else.......

I certainly don't mean to be confusing. I'm one of the few on this forum who is 100% open with my identity, history, approach, etc. My websites are filled with information about my practice and me. And yet, there is still this mystery?

I sold insurance for 20 years. I was licensed with probably 50 different insurers in that time. Best I can tell, when Farmers bought Formost (or some other insurer), the agency licensed me with Farmers. I don't ever recall selling a Farmers policy. Again, not sure why this is important. Must be though as it comes up almost every time I post here.

Seven years ago I left the agency world and started my consulting firm. I have not sold a policy since.

I now consult for insurance buyers, helping them buy and manage insurance. quite similar to what a Risk Manager does for a Fortune 1000 company - my work is on a contract basis for smaller companies. My average client is a bank, nonprofit, hotel chain, manufacturer, etc. Its mid market - $200,000 to $2,000,000 in premiums.

I don't sell insurance, I don't accept commissions, fees, or gifts from the agents and companies I work with for insurance buyers. The insurance buyer pays my fee. My clients are primarily in New England, though I have some outside. About 1/2 my business is reviewing coverage, the rest is general insurance management, claims issues, risk management, and bid management.

About a year after I started the consulting practice I started getting calls from people wanting to start their own consulting practice. I turned that into a mentoring program. I also work with agents (outside of New England) who are trying to build their business.

A new service I've started is an "Key Account Review for Agents" - You pick your agency's top accounts (biggest, most prestigious, most difficult, most vulnerable) and I look for trouble. I make suggestions on improving the coverage, account service, loss control, and claims management - better me than a competitor. As with my agent mentoring, I only do this outside of New England to avoid any conflict of interest with my insurance buyer clients.

I believe that I have the best job in the insurance industry. I can help buyers, agents, and other consultants hard market or soft. I work for myself, setting my own hours, working out of my home office. I have no employees so avoid the hassles of same. I have great clients who value my help - and pay me for that value.

Several of you have called and emailed me privately. I've enjoyed the conversations.

Forget being captive! The more companies you have to offer the better chances of getting business and retaining it. If you only have one carrier to povide and someone doesn't fit into the parameters, guess what, good bye client!

I've always wonder why or how anyone can make it being captive?

Maybe the way they do it is what I am currently looking at:
A policy; for a retail store (leasing); current insurance from a captive company; has no fire legal liability but has a very low premium. Is it that they sell that low premium and hope nobody notices the gaps?

jtabosida wrote:Forget being captive! The more companies you have to offer the better chances of getting business and retaining it. If you only have one carrier to povide and someone doesn't fit into the parameters, guess what, good bye client!

When you are a captive agent you can never sell price because you will rarely be competitive. You have to market by referrals such as escrow, mortgage, property management companies. Also, if someone is shopping your rates you have to scare the client into thinking if they go somewhere else the companies wont pay their claims. I am not a captive agent I am an independent agent. These are some of the tactics I have seen them use. They do a good job at it for the most part. Example: State Farm has got to have the most expensive home insurance policy in my area and they only provide 120% replacement cost. Most companies provide 150% replacement cost and are a lot more competitive. However, more people are insured with State Farm here than any other company.