Becoming a Farmers Agent - Buying a BoB

[Markthebroker]

There is no way that I would suggest buying a book of personal lines insurance with no insurance experience. No way.

In addition something seems off, its a second generational agency with a..."book... valued at about $145K"? Perhaps I am not understanding what a book value is.

Have you researched and understand what Farmers appetite for new business including homes and autos are in your location?

Do you know about the commission rate you would get paid? Undetrstand what policies that might sell and not get paid on? Have you looked at the competition? Any idea of what happens in the background to keep clients as clients?

Best of Luck

One more thing to piggy back on that, try to get some metrics and ideas on what will happen to a book once the original agent it gone. From my experience and the way I operate, most of my clients are buying me, my advice, my service, etc not the company specifically, though Farmers is a bit unique with their heavy marketing. If a new agent with little experience and no relationship with my clients were to take over? Well my clients might be like...

 

[marindependent]

[QUOTE="jallen505, post: 1407580, member: 101815"}
I've been with Farmers for more than 30 years...
Yes, I've seen a lot of agents fail over the years, but it had nothing to do with Farmers, or rates, or underwriting-it had to do with their attitude and drive. If you have those in line, I bet you won't fail![/QUOTE]

You have been with Farmers for 30 years, and in that entire time you have never seen an agent fail because of their high rates? Nor - their low underwriting acceptance?

I have to ask how involved in the new agent program have you been during that time?

 

[fed up]

lYes, I've seen a lot of agents fail over the years, but it had nothing to do with Farmers, or rates, or underwriting-it had to do with their attitude and drive.
What a crock of dung! Farmers nearly pulled out of Virginia and Maryland because their rates and underwriting went crazy in 2008 - 2010. Well established agents went from hero to zero when they lost 75% of their book over rates and the necessity to sign new contracts. Underwriting guidelines for auto became so strict it was a waste if time to quote anyone without perfect credit or perfect driving record. Coupled with a decision to freeze accounts in Bristol West forced consumers to look elsewhere

 

[AZDave]

I keep waiting for @jallen5005 to come back and defend. My money is that he is a district manager....I was even nice to him!

 

[marindependent]

I keep waiting for @jallen5005 to come back and defend. My money is that he is a district manager....I was even nice to him!

If he/she is a district manager than that overall statement cannot possibly be true.

If he/she is an agency owner..... I think its slightly possilbe that they have their head in the sand and are unaware of what is going on at the new agency program, but still - seems unlikely. If this is the case its unclear why they would even make a comment then?

Regardless how likley is it that the only agents that have failed, over thirty years, are because of their "attitude and drive."

 

[Markthebroker]

Lol, it's been years since I've seen a Farmers policy that I haven't completely murdered on price and coverage with a competing quote.

When I compete against a Farmers policy, and I am 30% to 50% less on a better written quote, that agent can be super driven with a great attitude, but they are still losing that client.