Newbie question - Choosing a GA

[meytai]

Hey community,

I'm new to the forum. I need your opinion on whether or not i should keep a single GA or keep them a line up of 4-5. The choices are Yates & Associates, Bliss & Glennon, Gorst & Company, King & Transcal. I find that it is good to have choices beacuse some underwriters get lazy, at the same time, i read somewhere around here indicating to have a single relationship with a single GA.

Your advice and opinion is appreciated,

Thank you in advance

Meytai

[d's insurance store]

If it's of any help, I alligned myself exclusively when I first became independent (from direct writer) almost 10 years ago (with one of your listed GA's). My thought was 'loyalty' would be rewarded with quick service, reasonable fees, broad markets and so on.

Well, I was wrong. Loyalty brought me service that was spotty, fees that sometimes were reasonable and at other times outrageous, quotes that came quickly and other quotes that took forever and renewals that were never processed until I called. I got the feeling that when mistakes were my fault, they were my fault, and when the GA made mistakes, they were also my fault.

So, I branched out. I'm down to using two or three consistantly and I try not to burden them with off the wall quote requests that might not stand much of a chance of placement. I think you'll learn pretty quickly who will and won't meet your needs. Send Acord quotes to two or three on each risk submission and you'll soon find out who has the ability to do business with you and who doesn't. Once you find a GA that meets most of your needs, give them the first shot at any business, but if they can't or won't deliver consistant service, then start sending out to others. If you have to engage a new GA, then try to just get a quote first before filling out all of their forms and applications...otherwise it's a bunch of work to find out you probably won't be doing business if they fail to deliver.

Try your best to qualify your risks...giving them premium range indications before launching into submitting from every phone call. The underwriters will appreciate your selectiveness. Neither you nor them will need the practice in quoting, and you'll find that when the phone rings and the prospect starts wondering about rates, then sometimes they're just kicking the tires for some far out business idea, and at other less frequent times, they're really serious. I hate it when I prequalify and give likely premium ranges...do the interview and fill out the forms...come within my estimates with a quote and the risk says "Thanks, I was just wondering what it might be...I'll call you if I'm interested". There are times when I may pass and really miss out on the business...but that's the risk I take for doing a quote that involves more than just swiveling in my chair and typing out some keystrokes to get a personal lines auto or home quote, or a BOP from one of my appointed markets.

Good luck.

[meytai]

Hey D,

Again i appreciate the response. I actually experienced that similiar situation. My underwriter was getting lazy, so i started to reach out to others. But i'm a relative baby to this.. so i thought i'd ask the community.

Speaking of, out of the list GA i listed, do you recommend any others? or ones i should stay away from?

PM me if you would like to answer this question!

Thank you,

Meytai

[gregcw]

[*] Re: Newbie question - Choosing a GA
by d's insurance store on Thu Mar 27, 2008 6:57 pm
If it's of any help, I alligned myself exclusively when I first became independent (from direct writer) almost 10 years ago (with one of your listed GA's). My thought was 'loyalty' would be rewarded with quick service, reasonable fees, broad markets and so on.[*]

I had a similar experience. I had also worked as Captive (encumbered) to Farmers. I had worked with one G/A, whom I always gave first shot to. The next day I'd submit the risk to other G/A's. The othe G/A's might submit it to the same carrier thereby locking G/A #1 out of that market for the risk. I was also experiencing very late renewal quotes, frequently just two weeks and sometimes as little as one week before renewal.

The result was that I had one customer tell me that I either get the quotes to him in a more timely manner, or find another company for him or he'd go elsewhere for his insurance. This was contractor risk (Manufactured Home Installer) that this one company treated more favorably for payroll than anyone else. So called and found another G/A, that had consistenly given me timely renewal quotes, and gave them a broker of record letter. When the first G/A (with whom I had dealt for 20+ years) learned of this they cancelled my affiliation with them.

Not every G/A deals with the same carriers and this gives you a better opportunity to get a competitive quote for your customer and possibly better or broader coverage. I have also had on G/A that got into financial trouble and eventually had the DOI sut them down. So limiting your self to only one G/A can be dangerous.

[meytai]

Wow,

Thanks for that response,

I appreciate yours sharing your experiences

Meytai

[volstrike3]

In my opinion, you have to work with 2-3 MGA/wholesalers. Just like retail agents, they get a little lazy if there is no competition and they can take your business for granted. Plus, each MGA or Wholesaler has special programs and markets for different risks. You will feel your way though the best 2-3 brokers for the type of business you typically write. I write a lot of construction, property and management liability so Colemont and CRC Sterling West have been the best for me. As long as your strait with them and give them a fair shot (not giving either of them last look and pushing business to them), they should not get upset that you work with other brokers.