I'm in California and I plan on focusing on Commercial/Contractors insurance. I'm not familiar with how agents or brokers work with insurance companies.
My concern was that others would already have an advantage on price over anything I would give. Also is "an appointment" by an insurer similar to giving an agent distribution rights for their products? Would it be pointless for me to enter the field if other agents/brokers have exclusive rights to certain areas etc...
As an example, I know of a broker that works with Lincoln, LLoyds and CBI. Does this mean if I go into business against them in the same area (location and product lines) their insuring companies will not work with me?
I appreciate any help on this..
Question About Appointments
Moderators: Josh, independent guy
I'm in FL so not sure all the rules would be the same but essentially an appointment with the company allows you to sell their products. The vasst majority of the companies I work with will not entertain dual quotes on the same risk. Although, in some cases it's not the company but rather the broker who is handling quote submissions.
In my area no one has "exclusive" rights to any areas. However, some agents might have an advantage in terms of access simply because they know the area better, have more contacts, and have a greater number of accounts. Also, they might have better pull with a particular company because they do a lot of business with them. That's just the name of the game. It's definitely not pointless to enter an area if that's where your prospects will be. One very important point I'd like to make is do not focus on price. Instead, focus on quality companies to represent and make sure they have solid products and services. Say what you'll do for the prospect and then do it. Eventually your reputation will work for you. If you make price an issue you'll lose. If you present low price as your advantage you'll become a slave to that and your book of business will be weak. People who look for the cheapest rates don't understand the value of insurance and will leave you in a heartbeat if they can get the insurance for less somewhere else.
In my area no one has "exclusive" rights to any areas. However, some agents might have an advantage in terms of access simply because they know the area better, have more contacts, and have a greater number of accounts. Also, they might have better pull with a particular company because they do a lot of business with them. That's just the name of the game. It's definitely not pointless to enter an area if that's where your prospects will be. One very important point I'd like to make is do not focus on price. Instead, focus on quality companies to represent and make sure they have solid products and services. Say what you'll do for the prospect and then do it. Eventually your reputation will work for you. If you make price an issue you'll lose. If you present low price as your advantage you'll become a slave to that and your book of business will be weak. People who look for the cheapest rates don't understand the value of insurance and will leave you in a heartbeat if they can get the insurance for less somewhere else.