Captive or Direct Writers

[new2independent]

I am fairly new to the indendent agency side.

I am currently targeting auto garages, machine shops/general manufacturing, landscapers, and print shops. Often times when meeting wtih a prospcect I notice that they are insured through carrier A or B. These carriers always come in 25-30% than my carriers that offer target programs for that class of business. How can this be? Does this happen often? I have stepped away from the table sometimes when I come accross this carrier as to not waste my time.

Any opinions?

[pita3333]

Are you seeing the same agent on those accounts?
Are they using the same premium basis as your market (not talking about the values, but basis- employees, payroll or receipts)? As I recall the typical prem basis for garage is number of employees.
Are they large carrier/program that might be buying up the market?
Is there some restriction in coverage that brings in the lower rate?

Perhaps they are in fact the best market for this class at this time.

Them be some top o head questions...answers might provide some insight into the situation.

Good luck...

[volstrike3]

If your getting beat by 20-30% in this market then you either don't have the right markets or the insureds are not giving you all of the information.