More than 200 of you took advantage of the 3 live webinars recently presented. Your timing is perfect as business is opening back up and commercial clients will be shopping. However, care must be taken. E&O markets are tightening up and Commercial Markets are entering into a hard market. This will also drive up further shopping but requires EXPERTISE & COMPLIANCE in undertaking commercial lines business.
Accordingly, everyone, please see below for IMPORTANT INFORMATION for ALL PREMIER AGENCY OWNERS WRITING ANY COMMERCIAL LINES as we have re-engineered commercial lines to better serve you and in consideration of changing market conditions and a positive outlook to diversify your P&C portfolio and create a stronger P&C offense to provide a protective defense for your PL business from the agent down the street.
Backdrop:
- Premier and YOU are a national powerhouse in personal lines. Whether you are a seasoned veteran or new, your Personal Lines (PL) success was built on a foundation of at some point in time of you committing to education and job knowledge as an integral part to your building out a business plan and executing in PL… Without that you would not be where you are today.
- Know this – we want you to earn the highest commission levels in Commercial Lines (CL) and have direct access, like you do in PL. And we will continue to provide every reasonable opportunity and endeavor for you to learn CL via education and job knowledge to build out a business plan and execute in CL… But many of you have expressed you simply do not have the time. Based on your feedback and frustration with something you just aren’t familiar with we have made changes!
- We now have a new 2-prong option called “COMMERCIAL NOW!”. CL NOW is for the majority of all standard market CL business and even some E&S business in phase 2. CL NOW will prevent in most cases you not knowing what Qs to ask, what information to provide, having to complete detailed applications which results in slow turnaround and frustration for all parties, etc. That is because, if you elect CL NOW you will not be writing the business. Premier CL Producers or Premier CL Insurance Carrier Sales Centers will be engaging the client, quoting the total commercial account, and writing it. All you will be doing is a warm handoff! And getting paid for it at top level margins!
“CL NOW” - How it works:
- You have an existing or new client where you have existing business – PL, Life, Health, etc. This is a must. The client has business insurance needs. The majority of the time the true needs are multiple line based... You warm refer to Premier ONLINE to a DEDICATE “CL NOW” MAILBOX very basic info about the existing client and the business: Client Name, Best Time to Contact, Contact Info, Existing Other Policy Info, Name, Nature, and Website of Business, etc., and advise the client a Premier representative (insurance carrier or Premier producer) will be in touch the next day. You are welcome to provide additional info up front but it is not required.
- Premier creates the agency management system profile, checks the business website against the carrier appetites and refers the client to EITHER a CL carrier most suitable for the client, or a Premier CL producer.
- Client outreach is made within 24 hours by the Carrier or PGI to obtain information about the business to begin the quote process to assure the right protection for the client’s needs at the right budget for Total Account Solutions for the client.
- The outcome, either policy (policies) are issued, or the reason why not issued, is entered into the agency management system, along w coding for commission payments, and the Premier Agency, you, is notified… Ongoing client service is then provided by the carrier and/or PGI producer… And of course, you are paid as commissions are received, per usual…
What’s Else is Important to Know about CL NOW?
- CL NOW Commissions are 25% of what Premier receives for both new and renewal business - for what is a warm referral… On a margin basis that is in the top quartile for net margin (EBITA) for P&C business – as you have practically no expense w this transaction… The existing Premier agency agreement you have continues for the CL NOW business as respects ownerships and equity. And you can withdraw from the program with 90 days notices and sell and service the CL NOW business at renewal, and your own direct access business provided you have the knowledge and flow for direct access. The choice is all yours…
- To participate in CL NOW there is a contract addendum and questionnaire. You eligibility will be based on volume and type of business you are able to refer in - Standard Market vs. E&S. Agencies having more standard market volume and those returning their signed agreements and information sheets first will be first in the cue (more than 30 already have said “sign me up”…).
Is anything else changing? (YES – PLEASE BE SURE TO READ)
- New CL appetite tool coming for you this month! Develop by Premier and our tech team, led by Chris Bixler – for many appetites the question of who might take this is provided by business description for the appetite. Be careful however, as the tool is only as good as the information going in…
- CL Comparative rate also coming this month at a rate of $35 per user/month for 2020. More to come when that is launched separately… Along w some incentives!
- AEs are assigned by CL major product header now – Standard Market Business or E&S Business, not by agency, unless you are in training for direct access. See below for Important information how this may impact you.
IMPORTANT - What are my next steps?
- New or Existing Agencies - without a solid CL knowledge base but you have flow - For CL NOW – Simply Sign Contract Addendum & EMAIL to Rex (RexH@PGIAgents.com ) with # of Standard Market Accounts you expect tosubmit monthly and list the major business categories, please. We’ll be in touch next week to get you started and provide you with the necessary mail boxes, contact points, and CL NOW Operations Guide.
- New or Existing Agencies – able to make the necessary commitment to CL education, job knowledge and CL business plan execution contact Rex asap, please, and we’ll get the Training team to send you info. You will have a dedicated AE throughout your OJT training.
- Existing agents already having direct access – nothing changes except how you contact an AE for those really complex accounts. AEs are now assigned by STANDARD MARKET OR E&S MARKET business. Complex Risks may be discussed or submitted by using the respective checklists online at www.PGIAgents.com under the Commercial tab and sent to the email mailbox on the checklist. For those complex risks, if the AE is engaged in the quoting and policy issuance, and or service the contract rate of 50% shall continue to apply as well as your responsibilities to provide complete and accurate information, applications, supplements, and utilization of the agency management system.
In closing, please know we continue to innovate on several fronts. This new CL NOW program will evolve as well. At present we have no state limits. We will open the program based on volume potential. But, we do reserve the right to make changes to this very new CL NOW program. Should you have any Qs, please email me. In time we will consolidate your Qs and circulate a FAQ for CL NOW.
Also please be advised on 6/17 we will have a Liberty Mutual webinar at 1pm MST/3 EST. Liberty Mutual is a great commercial carrier, and one of the Premier Sales/Service Center carriers. This webinar will be for everyone – Direct Access or CL NOW. Invite shall be forthcoming…
To Your Success!
Rex
Rex Hickling, CPCU, AIM
President, Premier Group Insurance, Inc.
Cell: (303) 818-6218
Office: (720) 457-0206
Fax: (866) 275-1213
600 17th St. Suite 1425N
Denver, CO 80202
