Back Broker Of Record Issue

How should we handle this one? One of our agents worked on this risk through a lead. After a couple of months dealing with the insured and working on several markets getting the best quotes. We beat his current agent by 3000 to 4000. This is a 22,000 premium. The insured then turns around and hands a broker of record to his current agent on all the market we hit and proposed. I know this is not news and has happened more often than needed. I just want some opinions on how other agents handle this type of situation.

When I use to be on the retail side, my usual answer to the insured would have been, why reward the original agent by giving them your work. Another response may be why reward the other agent for not finding the competitive market? Some insureds just don't realize the amount of work that goes to determining exposures and marketing the risk. Once they realize all the work you put into, some will see the light. With that being said, if the original agent long term relationship, all bets are off and feeling of loyalty kicks in. I have seen insureds pay more premium just because he has been with the other agent a long time and they are afraid to tell them that they have found a better deal and want to move the coverage.

This is not uncommon on middle market and large accouts. I combat this problem by having this conversation before I begin to work with a client. If you qualify the prospect properly and don't shotgun bid against entrenched encombent agents, you can really cut down on "practice quoting". If I am talking to a prospect on our first meeting and there are not any problems or issues and they seem pretty happy with their agent of several years but "want to keep him honest"... I move on. You need to be able to ask uncomfortable questions above and beyond "what would it take to get your business". I often tell them that saving money is the easy part... but firing their current agent will be the hard part. I ask them what they are going to do when the encombent shows up to his office with a wine basket and gives him a sob story and asks him for another chance? If they cannot answer that question... you don't have a solid middle market or above prospect. Agents will pull out all the stops to keep an accout that is paying . If all else fails and your still going to get taken over on a BOR... request the quote at 0% commish during the 5-10 waiting period so their lazy agent gets to work for free for a year. It is childish but it makes me feel better:)

This is not uncommon on middle market and large accouts. I combat this problem by having this conversation before I begin to work with a client. If you qualify the prospect properly and don't shotgun bid against entrenched encombent agents, you can really cut down on "practice quoting". If I am talking to a prospect on our first meeting and there are not any problems or issues and they seem pretty happy with their agent of several years but "want to keep him honest"... I move on. You need to be able to ask uncomfortable questions above and beyond "what would it take to get your business". I often tell them that saving money is the easy part... but firing their current agent will be the hard part. I ask them what they are going to do when the encombent shows up to his office with a wine basket and gives him a sob story and asks him for another chance? If they cannot answer that question... you don't have a solid middle market or above prospect. Agents will pull out all the stops to keep an accout that is paying good commission. If all else fails and your still going to get taken over on a BOR... request the quote at 0% commish during the 5-10 waiting period so their lazy agent gets to work for free for a year. It is childish but it makes me feel better:)

not to be rude... but to save you in the future if you ever email this to a client of yours... the word is "incumbent".

I too recently lost a fair sized account after the incumbent, who was basically invisible but made a showing when he was notified that there was another broker in the mix. My potential client unfortunately fell for whatever story he gave. I was appalled but it happens. I have a couple of his other accounts so I'm not totally "out of there."

why show the carrier name on the quote? just use A+11 admitted as the name of the insurance carrier. I think you need to build a better rapport with your suspects.

next year, come in $6,000 cheaper with a carriers name. Let HIS agent get an AORL, and bind a fictious #. That would really be funny!!!

billybob

are you suggesting that he NOT disclose the carrier's name for the quote?

I don't know that I would handle it this way but I don't think that it would be out of line to bill the insured for the time spent in doing the other agents work. In retrospect maybe billing both the insured and the agent that stole your work.

There are several things you can do. 1. Provide indication only letters stating A+ carrier Premium$19,000 formal terms and conditions to be disclosed upon recipt of signed applications 2. Prequalify the risk, if they ahve 3 brokers working on it you aint getting the order even if you can find a market that wasnt approached. 3. If they have been with the same broker for more than 3 years ask them if they have gotten quotes in the past from other brokers? If yes why are they with the same broker? Does the person you are talking to make the final decision or do you need to schedule an appointment with the firm's principal? 4. Understand taht a 15% reduction ($3,000 on a $22,0000 account) is not sufficient the way the market place has changed we are a veraging reductions of 30-40% on our renewals and more if the underwriter is afraid of loosing the account. Also note that you should be telling the MGA, wholesaler or Company underweriter this is what they are expiring at I need to beat it by 30-35% in order to stand a cahngce is it something you can do and if so what company are you going to approach/ 5. Ask the client if they are assigning markets or can you go anywhere you want? If he says go where you want shut it down he is going to take the quote and keep his broker cause you will go where his broker cant. You will also be blocked in multiple places. IF he is willing to give youa broker of record he will give it to the next guy who asks also.