Using Tech Startups to get Carrier Appointments

Congratulations on taking the hardest step. Starting your own insurance agency! However, not having an appointment is stopping you from selling.

Insurance carriers do not provide direct appointments to new agencies with no volume of sales. Especially, the top-rated carriers. This presents the chicken and egg problem. How can you have sales, if you have no carrier appointment?  

According to Insureon Insurance Solutions, an insurtech startup that provides agency services to insurance agents “Top-rated carriers don’t want just anybody selling their products. Most insurance carriers have very strict requirements that independent agents must fulfill before being appointed. Meeting those standards can be particularly difficult for new agents who are trying to build up their clientele.

There is hope! And that hope is technology-based insurance brokerages, such as Coverwallet for Agents, Insureon, and Next Insurance. These are well-funded insurance brokers that have access to the top insurance carriers. 

Here is an example. To get an appointment with an A-rated carrier such as the Hartford Group or Travelers is a daunting task. Especially as a brand new agency with no history of sales. However, if you were appointed with Insureon, who is already appointed with these carriers. You will be writing insurance policies with an A-rated carrier in just a matter of days. 

Their requirement are much easier to comply with. For example, to get appointed with Coverwallet, “All you need is a license in the state(s) where you do business and to show that you have Errors & Omissions coverage with a limit of at least $1M with a carrier that has an A.M. Best Rating of A- or higher.” That is it! The same goes for the other insurance tech startups.

Additionally, these tech startups provide tools that allow you to quote, bind, and manage all online. And their platforms are completely free.

Before the article comes to a conclusion, you are asking. What is the commission structure and who owns the account. Like with all commission, it depends on the insurance carrier. However, these tech brokerages are very generous with their commission distributions and they enable you to add a broker fee to the total cost. Lastly, the tech startup is the broker of record due to their appointment with the carriers. But based on their contacts, you are the owner of their account.

Reach out to these tech start-ups such as Coverwallet for Agents, Insureon, Next Insurance, and others to learn more.

Furthermore, check out our free trial of Underwrite to see how data would enable you to write accurate policies.