Getting dropped by Erie. Help with next moves

[DMV Insurance Guy]

My agency has been appointed with Erie in MD, DC, and VA since 2012 but we just learned last week that they are cancelling our appointment effective in three months.

We have pretty much only put all of our business with Erie so am scrambling for what to do in terms of rolling over most of our business. It is pretty substantial and trending towards profitable so hopefully we would be desirable.

Any agents in MD, DC, VA area have any recommendations for direct carrier appointments that would want to get access to our large Erie book of clients? Thoughts on signing up with SIAA or Iroquois Group to get a bunch of carriers? (meetings with each this week)

I am understandably freaking out so any advice would be much appreciated.

 

[marc82much]

Why are you getting terminated? Maybe consider selling yourself to another Erie agency. Erie books are very valuable.

 

[fed up]

Surprised that carriers are not beating a path to your front door, especially if you own the book.

 

[adjusterjack]

trending towards profitable

Meaning it's not profitable now?

Maybe that's why.

 

[Fletch_Insures88]

If they are terminating the contract it's probably because of either lack of new business or bad profitability... We have an Erie contract and we've spoken with some agents in our state that are in the same positions. Bad profitability will lead to a termination. Doubt there are many that would want to roll that into their book.

 

[DMV Insurance Guy]

We have had a few large losses (house fires and restaurant fire) that have hurt us but without those we are at about 80% and have been 60% for the past year.

Both Iroquois and SIAA said they would work with us for sure.

Any personal or second hand knowledge from other agents about their experiences with either?

 

[wmmforbes]

We have had a few large losses (house fires and restaurant fire) that have hurt us but without those we are at about 80% and have been 60% for the past year.

Both Iroquois and SIAA said they would work with us for sure.

Any personal or second hand knowledge from other agents about their experiences with either?

Hey DMV guy, im licensed in PA and MD with Erie.
I'm near Philly and Erie is really cracking down on total loss ratios. They are cutting agents over the recent years even putting agents on probation for their auto loss ratios only. That could be the reason you're on the hot seat. It's happened to a few of my friends. I've been an Erie agent for 15 years and they're always watching.
Anyway, try out Grange or Westfield. They're nice little companies that may be able to help you out. Some companies will bookroll the whole line of business and price match. My friend did it with Safeco.
If you do have any interest in selling your MD portion of the book, I may be be interested.
Just shoot me an email wmmforbes@hotmail.com and we can discuss more in detail.
Good luck

 

[tikibarrister]

If they are terminating the contract it's probably because of either lack of new business or bad profitability... We have an Erie contract and we've spoken with some agents in our state that are in the same positions. Bad profitability will lead to a termination. Doubt there are many that would want to roll that into their book.

I'm aware this happens but shouldn't carriers take reaponsibility for their own UW? They're the ones who agreed to cover thrae clients. Seems unfair to say "we are only going to cover those we approve, and also if it doesn't turn out the way we want, it's your fault."

I know...real world vs theory...just a thought.

 

[fed up]

I'm aware this happens but shouldn't carriers take responsibility for their own UW?

I would say that the large losses should not count against the agent because insurance is for catastrophic events but if the rest of the book is running at 80% then there is a problem with the customers calling in every little event, the deductibles are low, and Erie can't make any money on the book

 

[marindependent]

I feel your pain.... That Truly Sucks.