As you may be aware from our other videos, this series’ entire intent is to teach you the buyer the different methods you can use to procure your insurance coverage. Today I want to talk about what we call Limited Market Assignment. We talked about the value proposition and how you could use broker selection to pick the firm that best aligns with your core values, and you feel they would represent you the best. But if you’re in a position where you’ve got two or three that are close and had can’t make that decision, you might want to consider doing market assignment.
What is Market Assignment?
Market assignment is where you, the buyer, give the market. You assign them to each of the brokers that are competing for your business. Now, typically, you give the first pick to your incumbent. Whoever’s already on your account gets their pick of the litter, so to speak, unless you’re leaving because you’re not happy with them. And then you need to find an equitable way to determine who gets what market because many of us have all the same carriers.
Grab our E-book
So if you aren’t sure of how you should approach this, click below this ost. You can download the ebook that we’ve given you that will show you ways that you can purchase your insurance. And I’m going to provide you with a few tricks and tips for your side of the table so that when you deal with guys like me, you’re on a level playing field at a bare minimum, and you might even have a leg-up.
Does Market Assignment Work?
Market assignment is typically more challenging. It doesn’t yield as good results as broker selection or just naming an agent of record. And the reason why is because you have multiple agencies using multiple carriers, and they’re negotiating against each other. And suppose you’re looking to get more removed from the process of the actual negotiation. In that case, you probably aren’t going to be very happy with a market assignment type approach because you are the quarterback. You still have to field all of the quotes, work through them, and then decide based on that. And honestly, you’ve got agents that are fighting on your behalf with one arm tied behind their back because they’re negotiating completely blind.
So, I suggest that you only use this approach if you have a “tie-breaker” where you can’t make up your mind and you got to figure out a way that you can let two very closely aligned agencies compete or even three. But other than that, broker selection’s where it’s at, folks. I hope you take the time to download the book. If you have any questions at all, my calendar link is below, and you can always reach out with any questions you may have.