Summary: You have just received your insurance license and created an agency. What do you do next? New agents cannot sell insurance without direct access to insurance companies and the products they offer. This article discusses the process of connecting an agent or agency with an insurance company, which is called a carrier appointment.
Download PDF Version Insurance Agent Appointment Process
Insurance carrier appointments are an authorization from an insurance company giving an agent the authority to act on its behalf as an agent. Agents must be appointed by at least one insurance company in addition to being licensed by their state. According to
Insurance Agents and Brokers (IA & B) , the ideal situation for a new agent is to secure a carrier appointment with an established company, as most offer competitive products and commission schedules as well as opportunities for growth. However, this could be harder to come by as many carriers now desire at least a few years of experience, a good geographical location, a successful track record and an existing book of business.
Preparing for an Insurance Carrier Appointment
Just as an insurance carrier will take the time to do due diligence when adding a new agent to their team, agents should also do research on insurance carriers before they make a commitment. Questions to ask include:
- Is the company taking on new agencies?
- Do they have a premium quota?
- Do they have a proven record of selling and marketing their company and product?
Factors for Evaluating an Agency for an Insurance Carrier Appointment
Insurance companies consider many factors when deciding to do business with an independent agent or agencies. A production commitment from a carrier to an agent is flexible and a reality of the agency, size and geography. One of the top concerns is whether the appointment will meet their company’s objectives and profitability goals. Other questions an insurance company needs to ask when considering carrier appointments for independent agencies include:
- Location and appearance: Is the agency a professional operation that has access to the desired clientele?
- Financial information: Is the agency consistently profitable with good collection practices?
- Type of business: What is the agency specialization? What types of clients do they service and what is their retention rate?
- Insurance companies represented: Does the agency represent too many companies and present a duplication of geographic markets?
- Business plan: Does the agency have measurable and attainable goals, projected growth areas and the ability to meet company production quotas?
- Perpetuation plan: Does the agency have a plan for the future for finances, leadership and personnel?
- Automation: What technology and platforms does the agency currently use and what are their plans for the future?
AmTrust Carrier Appointments
AmTrust Financial looks for
qualified agents who wish to become appointed to write policies for small- to medium-sized businesses across various lines of insurance. While we're well-known for our
workers' compensation coverage and monoline risks, we want our agents to discover what else we cover in the “main street” business type risks, including
Businessowners Policy (BOP), general liability, property insurance and commercial package policies (CPP).
AmTrust is positioned towards tech-focused, automation directed agents who are comfortable with using our online rating platform. The 24/7 platform gives access to policy management systems, allowing agents to work on quoting policies when they need to. The platform also provides ratings and
claims management. Becoming an AmTrust Financial Agent
After researching, an agent has decided to make a commitment with a carrier – what happens next? If an agent chooses to work with AmTrust, there are a few steps to complete the carrier appointment:
- Agent fills out the online form asking for agent details as well as agency and production information.
- An AmTrust Business Development Manager will call the agent/candidate for a brief discussion.
- Post phone call, the agent/candidate will fill out a formal application form.
- AmTrust management will review the application and determine if an in-office or on-site meeting is required.
- The new agent is approved to work with AmTrust.
- The agent signs a contract with AmTrust, receives portal log-ins and is ready to start writing and rating policies.
With our wide range of insurance coverage options, we can help you find coverage designed to fit the needs of your customers. As an AmTrust appointed agent, you’ll be working with an organization that focuses on generating steady, stable and positive growth. Success is our policy, for both you and your customer. Please feel free to
contact us about the AmTrust carrier appointment process.
This material is for informational purposes only and is not legal or business advice. Neither AmTrust Financial Services, Inc. nor any of its subsidiaries or affiliates represents or warrants that the information contained herein is appropriate or suitable for any specific business or legal purpose. Readers seeking resolution of specific questions should consult their business and/or legal advisors. Coverages may vary by location. Contact your local RSM or more information.