Business Plan / Production Expectations

[jahyatt]

Thanks in advance for anyone's advice. I am a startup agency. I am trying to finish my business plan to get appointments by insurance carriers. What are most carriers looking for in the first year in terms of production? I want to be aggressive while being realistic and I have heard varying things as to what to expect.

Thanks again,

Justin

 

[sgriswold]

It varies from carrier to carrier, but be aware that many of them won't even talk to you as a startup - they'll require that you have at least 6 months of "experience" with other carriers and a book of business to transfer.

We're talking anywhere from $100k-$500k of premiums depending on carrier. Even a rock solid business plan won't help you, unless you have some sort of special connections.

However, there's a few that aren't so restrictive, but it depends on state. In CA one of these is Foremost. Not sure about others.

 

[JimmiDrums]

Justin,

I started in a very similar situation like you. Create a solid business plan. I put together a powerpoint with background about our past before we started the agency, our niche, and our method of generating business. Throw in some graphics too. I actually have received several compliments from most of the carriers that I've met with based on the look of the presentation!!!

Bottom line, I think having a good sustainable lead source/plan is critical to landing the appointments. Also committing 1st right of refusal to the carriers helps.

One last point. Don't take no for an answer. I received 4 "no's" from one of our top carriers before I finally found the right person at their company to give us an hour of their time to just give us a chance. We finally landed the appointment. And now that we have them, other carriers really seem to like that we have made it through the other carriers test.

 

[FLInsa]

Thanks in advance for anyone's advice. I am a startup agency. I am trying to finish my business plan to get appointments by insurance carriers. What are most carriers looking for in the first year in terms of production? I want to be aggressive while being realistic and I have heard varying things as to what to expect.

Thanks again,

Justin

Well, I am assuming you've worked as a Producer and have experience selling P&C? So just go off the numbers you used to produce.

 

[djs]

Most carriers will want to know your loss ratios as well. They want to get a sense of how well you underwrite risks. This is the hard part for new agencies, they don't have any premium and really don't know what the loss ratios will be.

This is why larger carriers want agents that have been around the block a few times. They can evaluate the agents performance. Yes, you may have a few claims in a year that put your loss ratios over 100% but overall, you need to be profitable for the carriers, not an expense.

Good luck in getting started. Don't let writing the business plan get in the way of opening the doors. Yes, you need a plan, but remember its a living document, its not ever complete.

Dan

 

[jahyatt]

"Bottom line, I think having a good sustainable lead source/plan is critical to landing the appointments. Also committing 1st right of refusal to the carriers helps."

Since I am new to this, my lead/source plan was A. People I know & B. some cold calling to build a base of clients. Do you think that is a decent plan or are carriers expecting more?

 

[FLInsa]

"Bottom line, I think having a good sustainable lead source/plan is critical to landing the appointments. Also committing 1st right of refusal to the carriers helps."

Since I am new to this, my lead/source plan was A. People I know & B. some cold calling to build a base of clients. Do you think that is a decent plan or are carriers expecting more?

Carriers will be expecting more.

 

[jahyatt]

"Carriers will be expecting more. "


Can you give me some examples....Thanks again.

 

[djs]

'Some cold-calling' sounds very non-committal.
People I know is EXTREMELY limited.

More looking for bigger plans and how they will be accomplished. For instance, just saying telemarketing sounds more impressive than cold-calling, even though it means basically the same thing.

You need 5 marketing methods, though a few can be passive. You've listed 2, now come up with another 3 and figure out how you will accomplish them and pay for them.

Some examples:
- Newspaper advertising
- Heavy involvement with the Chamber of commerce
- Direct mail
- Develop a referral network (i.e., realtors, car dealers, etc)
- Community involvement (this is more passive)
- Speaking engagements
- Emergency preparedness help
- ???? Use your imagination!

Dan

 

[jahyatt]

Thanks so much.

Some of that I had thought off, for example I am a member of the AGC (Association of General Contractors) thats the market I want to to target and I have it in my plan to network through the AGC, I think your right definately right thought that I am being to passive, what you said really makes sense.

One last question, and again, I really appreciate your insight;
I have had several people mention the Chamber of Commerce. In my old line of work, I only got a job if I was the low bidder, bottom line, no amount advertising mattered. I realize this is different and it is going to take some getting used to, but how does the Chamber help? Does it give you names of start up business to market to?

Thanks again