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New independent agents face hurdles getting carrier appointments
Carriers are returning to growth, but appointments remain uneven by geography, and each direct appointment typically requires a production commitment of tens of thousands in new premium.
Insurance Business reports that agents leaving the captive model often find carrier access is the first major test when building an independent agency. The outlet notes that the carrier appointment environment has shifted since the peak of the hard market, but access still varies widely by location.
The piece says that direct appointments commonly come with a production commitment, often in the tens of thousands of dollars in new premium. Keith Captain, president of FirstChoice, a MarshBerry company, warned that trying to chase every former insurer can backfire, because taking on many carriers can create competing demands and eventually lead to lost appointments.
Insurance Business also highlights that insurers scrutinize past relationships when evaluating appointment requests. Captain cautioned that applications that involve answers to termination history questions, such as having been terminated by a carrier, can become a major blemish in the underwriting of appointments.
The report contrasts those hurdles with examples where access was smoother through intermediaries. James Jenkins, CPCU, CEO of RiskWell, said his access via master agency SIAA was “exceptionally easy,” describing four months of carrier interviews before launch and starting with six direct appointments plus brokerage access to more than 200 carriers. The outlet also describes Foursurance owner Don Ferlazzo crediting SIAA introductions for helping him secure appointments.