Acquiring a Book of Business- Diversifying into P&C

[jacobtn]

Was curious folks thoughts here... I run a life & health brokerage that focuses on the senior market. We have a prominent location in a growing area and have a decent sized clientele (6-7,000 customers, most in a 30 mile radius). Would it be worth considering partnering with someone who has knowledge of the P&C side, and acquiring a BOB to diversify into the P&C market?

Thanks.

 

[RFMaurone]

Can you articulate a business plan ? If so then move in that direction. You could post your plan with goals and ask for feedback here.

 

[EugeneM]

Exactly the project I am working on right now. Brokerage has good Group Health business. Spent the last year helping him breaking into the commercial market. Not only in new business but writing commercial business in his existing group health clients. Setting up a turn key sales system so that he can turn quotes, get some activity and LEARN!!!!

In terms of motivation from an ownership standpoint Health Business is not as stable - Commissions threatened etc. The right kind of P&C business is a lot more stable/reliable. Also his health clients are of significant size so if he can scoop some more premium off the table so be it!

THE ONLY REASON this is going semi well is we have an established p&c agency guiding us. SIC Targeting, Running Appointments with us, Teaching, Access to markets etc...

In short yes it can be worth it depending on the partner helping you. P&C vs Health are like black & white. Its hard for an inexperienced p&c agent to compete without help and you can ruin your existing health business if you mess up on quoting their commercial.