At ABIA we are truly committed to partnering with our clients for our mutual success. We charge NO FEES for our services, to our good customers.
EVERY Property and Casualty Insurance agency or brokerage firm receives payment from the insurance companies that they write policies through for each policy written. This is called a "commission". Commissions range from 8% to 20% for each policy depending on the type of policy and the insurance company providing coverage.
Most agents or brokers will charge you an additional fee called an Agency, Broker or Service fee or other. They charge these fees as an additional method of retrieving revenue. BUT THEY DON"T DO ANY ADDITIONAL WORK OR PROVIDE ANY ADDITIONAL SERVICES!!! It's like they charge you for the privilege of doing business with them!
We believe an insurance agency should be maintaining and growing the agency through ONLY commissions. Does the supermarket checker charge you 10% for the service of ringing up your groceries? NO, Does the girlscout charge you a surcharge for bringing you the cookies you ordered? NO. Does the gas station charge you additionally for purchasing gas at their station? NO. So why should you pay the agent to provide you with a product he is already getting paid for by the insurance company? We think this is ridiculous and we refuse to participate in these greedy practices.
Our business model is just like yours, If we want to earn more money we must keep our valuable clients happy, create loyalty for our agency and promoting referrals from those good clients in order to attract and keep new customers thus growing our family of loyal customers. We need to be of maximum service to our clients and thus earning our commissions and in turn growing our agency.
Many of our customers have previously been insured through "Charitable" agencies who "specialize" in providing coverage for non profits or social service organizations yet the broker charges outrageous fees knowing that charitable organizations are on a very fixed budget. We have one client who paid $ 8,000 in fees (per year) to some Chaps in Pasadena, CA and the agent only visited the client once per year to collect their money and provided no extra services. That client is with ABIA now and they receive the same or better coverage for less premium, better additional services and all for no additional fees. Our additional services for that client have saved or returned to them over $300,000! With the money we have saved that organization they were able to create a drug and alcohol program for teens. Now that's what we call partnering with our client s and giving back to the community!
AT ABIA we charge no fees to our good customers and provide additional services such as workers compensation experience and claims reviews, safety training and inspections, claims management services, regular policy reviews and aggressive marketing. We network with affiliate services such as legal services, employment related iissue specialists, property inspectors, medical provider networks and much more
We know of a "Charitable " agency whose owner told us that she always needs to charge no less than $ 250 in fees or more per policy (not per client). She goes on to argue that without fees their agency could not stay in business. We think this is just poor business management and just downright greedy.
You may ask why we are so against fees. It's because over the last 25 years we've seen hundreds of good hardworking organizations, people and families struggle to make a successful business that unfortunately fell on hard times, all the while their broker or agent is getting rich by taking thousands of dollars in fees. If those agents returned back to their customers those fees those clients could have possibly saved their businesses.
As your insurance policy renewal approaches, inform your agent that you will no longer be paying their agency, broker or service fees. Let them know that the commissions that they receive from the insurance companies should be enough profit for them. They will argue and tell you that your paying for a higher level of service etc. If they truly value your business they will accept your decision and begin earning your continued business without those costly fees. If they decline and choose to continue to charge you, you have just learned that it was not the relationship that they valued but rather your money.
After the anger passes, give ABIA a call, we're honest, hardworking, diligent, aggressive, helpful, pleasant and we are TRULY committed to partnering with our family of clients to help you grow and keep your business.