Indedependent Agency Fees! ???

[AdvisorsIns]

How do you find out if your state allows this and what they allow? Surplus and excess lines service is killing me. Plus the finance contracts and certificates of insurance. Nightmare. If I am going to continue in this space I may need to charge a fee. I agree that in the personal prefered lines business it would do more harm than good. Maybe something to consider in the non-standard cash market. Service disaster there as well

 

[AZDave]

Ask your Department of Insurance.

 

[Guest]

Ask your Department of Insurance.

How much are the fees you typically charge? Ever get push back from clients?

 

[AZDave]

Typically $150. All quotes coming back from the brokerages (Swetts, All Risks, RPS, etc) have their fees clearly included. Just part of the nature of surplus lines business. Have had a couple question it, but my fee has not cost me the sale.

 

[AverageJoe]

This is very interesting. I wonder if FLA allows for fees..

 

[AdvisorsIns]

How do you set up billing options for your clients. Seems like you would have to set up a way to take credit and eft direct to your agency and then sweep the money to the carrier. Are the fees worth the extra accounting headache?

 

[AZDave]

How do you set up billing options for your clients. Seems like you would have to set up a way to take credit and eft direct to your agency and then sweep the money to the carrier. Are the fees worth the extra accounting headache?

For surplus lines business, all accounts are agency billed - agency owes the full premium to broker in full minus commission. Easy to arrange for third party financing (I prefer Capital). Easy to add 'points' to the financing too.

I do not have a credit card option for the full pay or the down payment if premium financed. If they can't pay the down with a check, I won't get the business, and usually don't want it.

If you place business thru a surplus lines broker, the fees offsett the extra work, extra exposure, reduced commissions.

 

[Gulliver]

Non Standard shops almost have to charge fees and if they do they make a lot of money doing it. I see anywhere from $15 to $125 in the areas I am around just for writing the policy. The secondary fees are on top of this. I know an organization who writes 500 policies per month in their(large)non standard shop. They charge $40 per policy. You do the math. By the way their retention is lucky to reach 50% so the fee is a big deal.

Gulliver

 

[rudy323]

People are surprisingly receptive to paying fees. Tx and Ca agencies do almost 50/50 splits on revenues of commissions vs fees.




On a $30 a month policy plus a payment fee the only way to make any money is via a fee.


We are a liability only insurance state. You guys with required UM/UIM and PIP have much higher premiums

 

[AdvisorsIns]

May depend in state. But do you have to have surplus broker license to charge fees?