Unless there is something wrong with you, you don’t love your carrier relationships as much as you love your kids, pets, or even a favorite sports team. But that doesn’t mean that you are in a rush to give those carriers up. It took a lot of work to get them, and to keep them happy.
On top of that, you don’t have a commission split to pay with anyone on your current appointments.
That’s why many agents want to make sure that if they work with Firefly they can either keep their current appointments, and/or have the opportunity to add more appointments with other carriers outside of us in the future.
The upfront answer is that yes, you can do both.
We’re nice, but we’re not naïve. We know that with those outside appointments you have production requirements and no commission split. So, you have good reason to take all of your best business to the carriers who have appointed you on your own.
Our only concern is adverse selection. If our carriers are always batting second to your direct carriers, our profitability with our carriers could suffer.
It’s not that you would be malicious, it’s just math and nature. That’s why so many other aggregators either do not allow you to have outside appointments or require that you pay them a certain percent of the book that is written with appointments you have outside of them. Both methods help aggregators avoid adverse selection, while allowing you to have outside appointments.
Firefly is different. We allow you to have outside appointments, and we don’t require you pay us any split on those outside carrier relationships.
Here is how we allow you to maintain outside appointments while ensuring our carriers get quality business:
Comparative Rater | EZLynx
Any agent who works with Firefly uses EZLynx for every personal lines quote. They can add their own carriers into EZLynx so they can quote them with their Firefly carriers at the same time. Firefly has enough great carriers to know that when you see their rates and coverages, they’ll earn their share of your business.
Loss Ratio Reports
We regularly run loss ratio reports for each agency that works with us. It is our hope that you’ll qualify for profit bonuses (contingencies). We expect that you will be profitable more often than not. If you are regularly unprofitable, we’ll terminate the contract we have with each other, and you’ll have the opportunity to move your book to another outlet.
No Production Requirement Per Carrier
You get the All-for-One approach.
Even after you have hit $500K in premium (which you have lots of time to do), we still run loss ratio reports. Hopefully you earn a profitability bonus, which continually confirms that your policies are not consistently losing the carriers money.
No Other Aggregators
You are absolutely welcome to get appointed directly with any carrier that we don’t have, and even the carriers that we do have. However, any agent who works with Firefly may not work with any other aggregators. If you have any questions about working with another group please ask us about it, and we’ll be happy to help.
By following the above points we believe that you can make the most of your outside relationships without hurting Firefly and the relationships that you (and other agents) have with our carriers.
*You should be aware that some carriers are captive and will not allow you to work with Firefly while you are contracted with them. It is up to you to ensure that working with Firefly does not violate any contracts you have in place.