Gain Insurance Carrier Appointments: Strategies For Success

Gaining insurance carrier appointments is a challenging but rewarding endeavour. It involves obtaining authorisation from an insurance company to sell their products and represent their brand. This process is crucial for independent insurance agents to succeed and grow their business. While it can be difficult, especially for new agencies, there are several steps that can be taken to increase the chances of success. These include researching various insurance companies and their requirements, establishing a solid business plan, demonstrating a proven track record of success in selling insurance, and networking within the industry.

Research your options and the carrier's requirements

Research your options and the carriers' requirements

Before you start filling out applications, take time to research your options. Compile a list of insurance companies you are interested in working with and learn as much as you can about how each company works. Ask yourself the following questions:

• Do these companies allow appointments with multiple companies, or is it only possible to have a single appointment?
• Are they taking on new agents, or will you need to wait?
• What are the financial goals of the company?
• What quota requirements exist?

Try to determine what a particular insurer is looking for in its agents by examining its appointment application and website. You can also call the insurance company and ask to speak with a Business Development Manager or someone in a similar role.

Some common requirements for agents include:

• An active license to sell insurance
• A proven track record of success in selling insurance
• A solid business plan in place and a commitment to its regular review
• A drive and readiness to succeed
• An established online presence and an ability to market well
• Strong customer service skills

Insurance companies want to know that you are a licensed agent, willing and able to sell products and find new clients. They also want to be sure that you will treat policyholders well so that they keep renewing.

If you are a small agency, you may struggle to get carrier appointments. Carriers often prefer to work with larger agencies, as they are seen as less of a risk and are more likely to provide a greater return on investment. However, some carriers have a track record of working with new agencies, so look out for those.

If you are intent on working directly with carriers, you will need to cultivate a relationship with your intended partners. Be ready to show your strategy and emphasise what sets your agency apart. Carriers will want to see that you have processes and technology in place to keep your producers compliant.

If you are just starting out, gaining appointments for personal lines of insurance may be difficult. Most companies prefer agents with plenty of experience and an established book of business. However, you could consider selling commercial insurance or looking into unusual types of insurance, such as food truck insurance, where there is less competition.

Alternatively, you could gain experience by working with a Managing General Agent (MGA). MGAs are intermediaries between insurance agents and insurers, and it is easier to get appointments when you have direct access to agent support from a larger group.

Apply for an appointment

Each carrier has its own specific appointment process, but there are three main steps in the appointment process:

Research carriers

First, research the carriers and evaluate whether their products align with your agency's goals, target market, and product offerings. Ask yourself: do these companies allow appointments with multiple companies, or is it a single appointment? Are they taking on new agents? What are the financial goals of the company? What are the quota requirements?

Review appointment requirements

Next, review the appointment requirements to determine whether or not you qualify for an appointment. Some common requirements include an active license to sell insurance, a proven track record of success in selling insurance, a solid business plan, and strong customer service skills.

Prepare a business plan

Finally, prepare a business plan that highlights your experience, your agency's accomplishments, and your individual successes. This will show the carrier that you are a licensed agent who is willing and able to sell their products and find new clients.

The exact process varies from company to company, so be sure to ask about the next steps. For example, after getting an appointment with Atena for selling health insurance, you must get certified with their training program. Similarly, P&C carriers might have their own requirements. Always check the requirements so you don't get caught off guard.

Keep in mind that getting a direct carrier appointment can take several months as the insurance company has to register your appointment at the state level. If you're looking to start selling right away, consider becoming a captive agent first, which means you only work and sell products for one insurance company. This can give you the experience and knowledge you need before becoming an appointed agent with other carriers as an independent agent.

Fill out the application

Filling out the application is a crucial step in the process of gaining insurance carrier appointments. Here are some detailed instructions to help you navigate this process:

Understanding the Application Process:

Before you begin filling out the application, it's important to understand the overall application process. Most insurance companies allow agents to complete the initial application online. This application will require you to provide information about yourself and your agency. Be prepared to answer questions about your experience, qualifications, and business plans.

Providing Complete and Honest Information:

When filling out the application, it's essential to provide complete and honest information. Avoid the temptation to exaggerate your accomplishments or pad your experience. Insurance companies are looking for trustworthy and reliable agents, so honesty is crucial. Make sure you answer all the questions to the best of your ability and provide accurate and up-to-date information.

Highlighting Your Strengths and Experience:

Use the application to highlight your strengths and relevant experience. If you have a proven track record of success in selling insurance or strong customer service skills, be sure to emphasize this. Insurance companies are seeking agents who are skilled, driven, and able to build solid client relationships. Showcase your ability to sell products, find new clients, and provide excellent customer service.

Understanding Carrier Requirements:

Before submitting your application, take the time to understand the specific requirements of the carrier you are applying to. Different insurance companies may have varying requirements and expectations. Review their website, appointment application, or reach out to their business development team to gather information about the qualifications and skills they are seeking in their agents. This will help you tailor your application accordingly.

Preparing for Additional Steps:

Keep in mind that the application process may involve multiple steps. After submitting the initial application, you may be invited to discuss your application further with a sales manager. Be prepared for the possibility of a more formal application and an in-depth interview, and a thorough review of your paperwork and portfolio. The process can vary from company to company, so don't hesitate to ask about the next steps and any specific requirements they may have, such as additional training or certifications.

Staying Persistent:

Gaining insurance carrier appointments can be a lengthy process, and it may take several months to finalize. Don't get discouraged if you don't hear back immediately. Stay persistent and follow up on your application if necessary. Remember that carriers receive numerous applications, and it takes time for them to review and make decisions. Your persistence demonstrates your enthusiasm and commitment to working with them.

Join an insurance cluster or network

Joining an insurance cluster or network can be a great way to gain access to insurance carrier appointments. Here are some key points to consider:

Benefits of Joining an Insurance Cluster or Network:

• Better Access to Insurance Carriers: One of the most significant advantages of joining an insurance cluster is gaining access to insurance markets and carriers. Agency size is often a barrier to becoming appointed with more insurance markets, and insurance clusters can help overcome this challenge. Clusters often have relationships with larger carriers, which can benefit smaller agencies.
• Profit Sharing: Profit-sharing is another benefit offered by some insurance clusters. Agencies within a cluster can take advantage of local and regional profit-sharing incentives that they may not have been able to achieve on their own.
• Cost Savings: Insurance clusters provide shared resources, such as marketing, advertising, consulting services, and agency management software. These shared resources can result in significant cost savings for individual agencies, especially when it comes to expensive agency management software.
• Networking Opportunities: Joining an insurance cluster provides access to a wider network of fellow agency owners and agents. This network can be invaluable for sharing market intelligence, learning from peers, and potentially gaining new business opportunities.
• Support and Resources: Insurance clusters often offer a range of support services and resources to their members. These can include marketing support, technology solutions, data measurement tools, training, and advice. For example, some clusters offer user-friendly technology that helps agencies streamline processes and increase profitability.
• Competitiveness: As an independent agency, it can be challenging to compete with larger organisations. Joining a network cluster provides the power of numbers and the sales potential of a more prominent agency, helping independent agencies gain credibility in the industry.

Things to Consider Before Joining an Insurance Cluster or Network:

• Membership Requirements: Different clusters have varying membership requirements. Some may require certain premium levels, concentrations of business in a particular line, or geographic restrictions. It's important to ensure you meet the membership criteria before applying.
• Fees and Costs: There are typically fees associated with joining an insurance cluster, such as initiation/startup fees and monthly fees. These fees can vary significantly, so it's essential to understand the cost structure and ensure it aligns with your budget.
• Production Requirements: Joining a cluster may come with greater expectations to produce and meet sales targets. It's important to consider your agency's bandwidth and ability to meet these requirements.
• Exit Fees and Penalties: Most insurance clusters charge substantial exit fees or penalties if a member decides to leave. It's crucial to understand these costs and any associated clauses, such as buying back your portfolio or enforcing non-compete agreements.
• Control and Independence: While clusters provide support and resources, it's important to ensure that your agency maintains its independence and control over business decisions. Understand the cluster's structure, hierarchy, and decision-making process to ensure it aligns with your goals and expectations.
• Vetting and Approval Process: Different clusters may have varying standards and processes for vetting and approving new members. It's worth understanding these barriers to entry and ensuring that your agency meets the required standards.
• Stability of the Cluster: Consider the stability of the insurance cluster. The departure of key member agencies can cause disruptions or even lead to the cluster's dissolution. Understand the cluster's policies and procedures regarding member departures to assess the potential risks.

Examples of Insurance Clusters or Networks:

• ISU Insurance Agency Network: The second-largest insurance network in the country, ISU offers revenue growth opportunities, professional insights, events, and more. They also do not charge any exit fees.
• SIAA: The #1 alliance of independent insurance agencies, with access to over 30 top national and regional insurance companies. SIAA provides multiple revenue streams, training opportunities, and tools to help grow your book of business. Their website suggests there are no exit fees.
• Keystone: Keystone offers industry expertise, expanded access to products and services, community training, capital sharing, support teams, sales management tools, and more. However, they do not provide information about associated fees.

Remember to research multiple clusters or networks, consider your specific goals and needs, and carefully evaluate the benefits, requirements, and costs before making a decision.

Establish a working relationship with a carrier

Establishing a working relationship with a carrier is crucial for success in the insurance industry. Here are some strategies to build and maintain strong relationships with insurance carriers:

Understand the Mutual Benefits:

Agents and carriers rely on each other for success. Carriers and underwriters craft policies and assume risk, while agents help clients find the right policies and carriers. Recognising this mutual dependence lays the foundation for a productive relationship.

Focus on Adding Value:

Carriers should strive to offer more than just competitive pricing. They should act as risk management partners, helping insured individuals or businesses understand their exposures and offering solutions to mitigate risks. This adds value to the relationship and strengthens the connection with brokers and clients.

Follow Through on Commitments:

Reliability is essential. Carriers should ensure they fulfil their commitments and maintain open communication if any changes or issues arise. Prompt responses, clear communication, and meeting expectations build trust and foster stronger relationships with brokers.

Leverage Technology:

Implementing technology that enhances the relationship is beneficial. Self-service technologies, such as digital portals, that enable easy access to quotes, claims, and information are highly valued by brokers and clients. These tools streamline processes and improve efficiency.

Emphasise Company Culture:

Agencies want to work with carriers who share their values. Carriers should make their values known and showcase their commitment to social responsibility, community engagement, and ethical business practices. This helps build long-term relationships with agencies that share similar values.

Know Your Unique Selling Points:

Carriers should highlight their strengths, such as risk management programs, strong coverages, claims expertise, and exceptional customer service. By showcasing their unique capabilities, carriers can differentiate themselves and attract brokers who align with their offerings.

Establish Personal Connections:

Building authentic relationships with underwriters is key. Take the time to understand their professional and personal goals and show that you care about their success. Utilise various communication channels like emails, phone calls, and social media to connect and foster a mutual respect that will benefit both parties.

Schedule Regular Meetings:

Regular touchpoints help build trust and rapport. In addition to annual and quarterly meetings, schedule frequent calls or meetings to align expectations, discuss goals, and address any concerns. This consistent communication strengthens the relationship and ensures everyone is on the same page.

Pre-qualify Accounts:

Underwriters receive numerous requests, so saving them time and effort is valuable. Pre-qualifying or pre-underwriting accounts before submission demonstrates respect for their time and shows that you value their business. This also increases the chances of your submissions being quoted and approved.

Understand Carrier's Underwriting Appetites:

Learn and respect the carrier's level of risk and their specific underwriting criteria. Sending submissions that align with their appetite demonstrates that you value their time and are a trusted partner. This knowledge will also help you better match opportunities with the right carriers, increasing your success rate.

By implementing these strategies, you can establish and nurture strong relationships with insurance carriers, which will ultimately benefit your clients and contribute to the success of your agency.

Frequently asked questions