Are licensed independent insurance agent required to have a physical agency location

Jun 19, 2008

  1. rspradlin
    Offline

    rspradlin New Member

    Posts:
    3
    Likes Received:
    0
    Are licensed independent insurance agents with active appoinments required to have an physical agency location to sell for ins carriers

    I'm a Florida 220 General Lines Licensed Agent with an Active Appoinment.

    I'm seeking to offer a simpler way of shopping for auto insurance by providing the cheapest auto insurance quotes from top 15 insurance companies to consumers via my website.

    The completion of the application will take less than five minutes. We will match the consumers application to all affiliated insurance companies. Then our system will show the lowest rates out of those fifteen for you. After you compare car insurance rates you will be given the option to purchase a low cost policy online.

    I would like to get appointed with the following insurance companies: Progressive, GEICO, AIG, Arrowhead, Electric, Encompass, Esurance, The Hartford, Liberty Mutual, MetLife, Permanent General, Safeco, Travelers, and Unitrin. If required to do so to sell insurance for them.

    By comparing rates from a broad list of companies we'll improve the consumers chances of purchasing the cheapest insurance.

    Can anyone point me in the right direction on how is best to do this?

    There are companies (i.e. netquote) which offer referrel fee's to companies that supply traffic to netquote like sites thru the companies web site.

    I do plan on opening an actual agency with business physical location. Current by Florida law, I can obtain an Agency License being that part of my residence is used for commercial office and falls within their acceptable guidelines.

    My ulitmate goal would be to set up a website storefront where consumers could complete an application and get several quotes instantly online with the ability to purchase their chosen policy.

    This may be best to set up with an existing agency to that they can use their empolyee's and operations to service the policies and split commisions on the policies and renewals.

    Any advice or ideas on this subject would be greatly appreciated.

    Kindest regards!
     
  2. moonlightandmargaritas
    Offline

    moonlightandmargaritas Guru

    Posts:
    9,749
    Likes Received:
    36
    State:
    Florida
    Re: Are licensed independent insurance agent required to have an physical agency loca

    Nice sounding concept, but I don't think any of those companies will appoint you using that model.
     
  3. rspradlin
    Offline

    rspradlin New Member

    Posts:
    3
    Likes Received:
    0
    Re: Are licensed independent insurance agent required to have an physical agency loca

    If you don't mind and you get a chance, check out Compare Rates for Insurance Quotes and Save Money.

    They seem to be doing a similar business model and I'm curious as to how they're able to represent the insurance carriers they've listed on their site.

    Any idea's on how they're able to do so?

    Thanks again!
     
  4. moonlightandmargaritas
    Offline

    moonlightandmargaritas Guru

    Posts:
    9,749
    Likes Received:
    36
    State:
    Florida
    Re: Are licensed independent insurance agent required to have an physical agency loca

    The site is "netquote".

    They don't sell insurance, they sell insurance leads to agents.
     
  5. rspradlin
    Offline

    rspradlin New Member

    Posts:
    3
    Likes Received:
    0
    Re: Are licensed independent insurance agent required to have an physical agency loca

    I guess I should contact a local independent agent with multiple carriers and set up a quote site to send my leads directly to that agency and then work out a split commissions plan favorable to both parties. Being that I'm licensed I can share commissions with agents with the same license.

    What is the average commissions (estimate) on an auto policy on a used vehicle?
     
  6. Steve
    Offline

    Steve Super Genius

    Posts:
    135
    Likes Received:
    0
    Re: Are licensed independent insurance agent required to have an physical agency loca

    The percentage of commission won't change on new vs. used vehicles. the percentage will change with different insurance companies.

    If your question was for a dollar amount, the answer is impossible. Make, model, year, age, sex, home address, distance to work, what the vehicle is used for, loss score rating, MVR history -- so many things to take into account for premium levels. They vary greatly.

    Good luck. There's a ton of competition on the internet for quoting.
     
    Steve, Jun 20, 2008
    #6
  7. bobson
    Offline

    bobson Guru

    Posts:
    1,062
    Likes Received:
    5
    Re: Are licensed independent insurance agent required to have an physical agency loca

    At least you are enthusiastic!

    I can write with a number of those companies and I guarentee you they won't just appoint you because you want to. Getting a P&C appointment is nothing like getting an appointment with Assurant.

    You will never be able to develop a program that will allow a consumer to get rates from all of those companies in 5 minutes. The different information Safeco requires versus Travelers versus the Hartford is almost mind boggling. They seemingly all sell the same product but how they generate rates is very different.

    It makes much more sense for a consumer to go see an independent agent, give them all the information they need and have the independent agent fill out all the forms and run the quotes. Even with programs like EZ Lynx, it takes more than 5 minutes to get all the specific information for the various companies.

    In addition proftiability wise, you will not get much pull with a P&C company if you write one or two policies a month with them. Besides, most of them would cut you off after a few months of inacitivty anyway, even if you were to get an appointment.

    If generating rates for consumers was the only job of a P&C agent you might have a chance to write with a few of those carriers. That is far from the only job of a P&C agent.

    Good luck!
     
    bobson, Jun 23, 2008
    #7
  8. djs
    Offline

    djs Super Moderator Moderator

    Posts:
    6,676
    Likes Received:
    75
    State:
    California
    Re: Are licensed independent insurance agent required to have an physical agency loca

    I love your enthusiasm. Don't let what I'm about to say diminish that. There are obstacles to your business model, or everyone would do exactly what you are proposing. Some carriers do, such as progressive, but then, they don't need you.

    Many of the carriers you are talking about will require that you inspect the risk you are insuring, i.e., you need to see the car before you insure it. You need to see the house before you insure it, etc. This lowers the risk to the carriers significantly. (not all require the inspection, most do).

    Without a physical inspection, you probably will not have binding authority, i.e., you would have to submit the case to the carrier for approval, which means your business model doesn't work.

    There are carriers that work this style model themselves. Obiously, e-surance with their quote buy print model does it. In that model though, an agent is overhead that they don't use.

    All that said, 3 years ago I wanted to do exactly what you are suggesting. I couldn't find a way to make it work then, so I don't have much help in making it work now.

    Dan
     
    djs, Jun 23, 2008
    #8
  9. Soaringagent
    Offline

    Soaringagent Guru

    Posts:
    624
    Likes Received:
    0
    Re: Are licensed independent insurance agent required to have a physical agency locat

    I LOVE your enthusiasm. Try starting small with a few carriers and see how that goes. Maybe work with a GA first and see how it goes.

    Keep up the good work and love your show.
     
  10. rocketboy
    Offline

    rocketboy Expert

    Posts:
    69
    Likes Received:
    0
    Re: Are licensed independent insurance agent required to have a physical agency locat

    What I am trying to figure out is if esurance can do it then why wouldn't others be able to follow suit.


    I mean they offer insurance over the internet from several carriers and never see the car. They also offer it in 28 states currently.
     
Loading...