A Virtual P&C Agency? What Are Your Thoughts?

[BlockO]

well if it's just a one person agency, I assumed tlcpflorida meant something similar, but on a much smaller scale.

 

[TLPCFLORIDA]

That is exactly what I was thinking. I have read in this forum of buying leads so the incoming calls would be outbound calling. But if you have 50 states and the time to put into the process I would imagine you could earn a living for a one person show.

Start up costs would be the leads that you would have to buy and then of course your hardware. Anyone know of hidden costs outside of the licenses? Also, I wasn't sure how the carriers would treat such a venture.

I would totally agree that you would have to have that phone call and the email to verify the information. The photos are a great idea, too.

So appreciate all of the input.

 

[TLPCFLORIDA]

Yes, this is exactly what I was meaning, just a one man shop. I'm reading here of posts where you are purchasing leads. The inbound calls would actually be outbound calls on the leads.

Just wanted to toss around about whether carriers would have a problem. I would think a safe bet would also to make recordings of all phone calls to back up the verification.

Thanks to everyone for your responses and have a great evening!

 

[BlockO]

there are no hidden charges outside of licensing. but getting the licenses alone in 50 states will cost over 5 grand. some states are cheap ($20 or less) while other states charge several hundred for a non-res license.

 

[djs]

I'm confused on why you would want to bother to do this in all 50 states as a one man show. Aren't there any drivers in your own state? The differences in the laws get complex and confusing when working in multiple states.

Carriers will object all over the place. The reason they pay agents is to field underwrite the risks. If they wanted only web sales, they would do those in a big way (some do). Doesn't mean they won't let you do it, just let them know that you are not inspecting the risks. Having someone send you pictures does help, but not the same as actually seeing the car. Some carriers are okay with that, others require I go see the risk.

Dan

 

[redsquash]

My understanding was, carriers dont care as long as its 'quality' business. The client will provide the info if there were any past claims. If he lies, that can become a reason to deny the claim, because most likely carrier will find it out when the need arise (read claim is filed)

The big obstacle in doing business in other states is, how do you convince the prospects to deal with you, instead a local agent in his city. I have not yet found the answer to this question.
Does anyone has suggestion on this?

 

[Bertolinoins]

My next question is why you would want to attempt this? In my experience you do not find high quality accounts buying through the
Internet. You also would not have access to all of the quality regional carriers that often do a better job of underwriting and/or have better rates than the national carriers. It is a poor business model in my opinion.

 

[Bob Klee]

Personally I'd have to ask why?

I don't think it is worth the cost for a 1 man shop. Expensive & not practical. But, if one had a business plan to expand nationwide...

Insurance.com comes to mind. Bought by QuinStreet.

Esurance.com was bought for $1 BILLION by Allstate Insurance Company with this exact business model in mind. Answer Financial came with the deal.

Allstate, Progressive & Geico "get it" when it comes to finding customers on the internet and they are only going to get more aggressive. I read that the Insurance companies were going to spend $5 BILLION on advertising this year! You can't turn on your TV & not see an insurance company ad. They are fighting for market share folks!

Allstate bought eSurance because they cannot grow with "just" brick & mortar agencies. Search online & you will see that someone is moving the Cheese & "we/agents" need to figure out how we will get some of the Cheese for ourselves before we can't find it any more. Paradigm shift for many on this Forum I suspect.

Me, I'm an old fashioned guy & believe "they" can't replace a good agent with technology....but my demographic is turning 65 to the tune of 10,000+ per day and while I'm at the tail end of that group, my 26 yr old son buys almost exclusively online while my girls like to shop more in person.

We better identify our market vs. trying to serve everyone. Not enough resources to be all things to all people. If you know who Rick Warren is, check out Saddleback Sam!
"Saddleback Sam is the typical unchurched man who lives in our area. His age is late thirties or early forties. He has a college degree and may have an advanced degree. (The Saddleback Valley has one of the highest household education levels in America.) He is married to Saddleback Samantha, and they have two kids, Steve and Sally.

Surveys show that Sam likes his job, he likes where he lives, and he thinks he's enjoying life now more than he was five years ago. He's self-satisfied, even smug, about his station in life. He's either a professional, a manager, or a successful entrepreneur. Sam is among the most affluent Americans, but he carries a lot of debt, especially due to the price of his home."


What is Your Target Market? Something to think about.

Blessings!

 

[Sales71]

It's hard enough dealing with one state. The underwriting process, the policy types it will be hard to be a good service for your clients.

I have to advise Aginst that type of set up

 

[ralfgage]

I have seen the surge in companies such as Nationwide, Progressive and Geico going great guns into the Call Center Mentality. One sales agent writing 50 States Auto, Home & Life.

Has it been done outside of these large companies? If you have the licenses in this many states for P&C and Life with the necessary experience could you take it Independent Agency? How would you get appointed across state lines?

I would like to use my CPCU and all these licenses to the best advantage and have very little home town contacts. Cold Calling and the telephone are great contacts points for me personally.

Any thoughts would be appreicated.

its not difficult. You need to get licensed in each state that may take time. Also you may need website and marketing efforts to take advantage of your product lines.