Becoming a State Farm Agent

I think clients of SF couldn't ask for a much better company. However not as good anymore for career agents. Market share is weak and you end up fighting for standard business with lots of service needs. Auto insurance is the money maker. The more it becomes more of a commodity the less folks feel they need a local agent. Then your stuck in a price war with only 1 trick up your sleeve. In today's world agents need choice because want choice.
 
Advisorsins - thanks for the insight. I'm sincerely considering the SF opportunity (taking over a retiring agents biz...not the new market 'opportunity'). I've read the dirt and heard the sales pitches from the recruiters. To me it seems like a great opportunity...but you need to know what you're signing up for. I believe that most potential agents don't do their homework and think that insurance is a get rick quick scheme. Once you realize that it's a get rich slowly scheme...you can decide which path is best for you.
 
Advisorsins - thanks for the insight. I'm sincerely considering the SF opportunity (taking over a retiring agents biz...not the new market 'opportunity'). I've read the dirt and heard the sales pitches from the recruiters. To me it seems like a great opportunity...but you need to know what you're signing up for. I believe that most potential agents don't do their homework and think that insurance is a get rick quick scheme. Once you realize that it's a get rich slowly scheme...you can decide which path is best for you.

My one and only comment is that there have been posts that on the agent retiring SF does not assign the whole book to one new agent and instead splits it up not to mention you still have no guarantee to actually getting that permanent contract.
 
Norwayguy...good point. I've heard that too. But worst case that I've heard of was approx 25% attrition. So...theoretically if the book was large enough to start out with, then that setback could be overcome. Thoughts?
 
Norwayguy...good point. I've heard that too. But worst case that I've heard of was approx 25% attrition. So...theoretically if the book was large enough to start out with, then that setback could be overcome. Thoughts?

Norway is not talking attrition but that SF usually divides the book and doesn't give it all to one agent. They will sometimes divide a book three ways.
 
I think clients of SF couldn't ask for a much better company. However not as good anymore for career agents. Market share is weak and you end up fighting for standard business with lots of service needs. Auto insurance is the money maker. The more it becomes more of a commodity the less folks feel they need a local agent. Then your stuck in a price war with only 1 trick up your sleeve. In today's world agents need choice because want choice.
Market share is weak?

The largest auto insurance companies by market share


By Insure.com

Last updated: Aug. 1, 2012



The following list is courtesy of A.M. Best. Rankings are based on direct premiums written for private passenger auto insurers.

RankInsurance company or groupDirect premiums written (in 000s)Market share %
1State Farm Group30,091,74918.07
2Allstate Insurance Group17,451,27910.48
3Berkshire Hathaway Insurance Group15,346,8919.22
4Progressive Insurance Group13,418,4558.065
Farmers Insurance Group9,972,0845.99
6USAA Group7,711,4134.63
7Liberty Mutual Insurance Companies7,684,2314.61
8Nationwide Group6,855,2934.12
9Travelers Group3,526,7382.12
10American Family Insurance Group3,042,9921.8311Hartford Insurance Group2,347,4411.4112Auto Club Enterprises Insurance Group2,109,9071.2713Mercury General Group2,068,5031.2414MetLife Personal Lines Group2,053,5031.2315Erie Insurance Group1,999,0761.2016California State Auto Group1,946,7921.1717Auto-Owners Insurance Group1,632,9270.9818MAPFRE North America Group1,478,0940.8919Auto Club Group1,472,3150.8820Kemper P&C Group1,133,8580.6821Integon National Group1,120,1400.6722Infinity Property & Casualty Group1,018,0100.6123Amica Mutual Group997,9530.6024The Hanover Insurance Grp Prop & Cas Cos979,4270.5925COUNTRY Financial Property Casualty Grp973,4800.58Source: A.M. Best, based on 2011 premiums
 
Sure, SF has the largest market share, but as a new agent trying to capture a share of the market your biggest competition is the fact that your company already holds the majority of the market. Try calling on a list of 100 as a SF agent. 35-40% will already be with a SF agent. Call on the same list as an Indy and game on for all 100. Sure they may be with Travelers but quote them with Allied or Safeco or whoever.
 
I used to work for an agent that had been one of the top State Farm agents in the country (or so he said), he worked as a SF agent for 15 years, but he made one mistake and State Farm let him go. Bye bye book of business. He opened up his own independent agency and is now selling huge commercial policies. This was why I decided not to go the captive route, all your work can be taken away. I do not know what he did to make him get fired.....
 
another thing to consider is how many SF agents in your town? Most cities have SF agents piled on top of each other and they will be your biggest competition. You will be fighting for the same slice of the pie as all of them and when your customers go them for any service work you better believe they will try and take them from you.

I hear the training is excellent,but go I would go into it with Plan B on my mind and ready to go when/if needed.
 
Ok, so I passed the competency interview yesterday and I'm moving forward. Not sure if I'm excited or not. Time to prepare the 'business proposal'.
 

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