Business Planning

[Bob Fox]

I am building a business plan for a new agency focused on high net worth personal and medium to small business in Michigan. Does anyone know of a good source to get average premiums for those products?

 

[Tahoe Ray]

I am building a business plan for a new agency focused on high net worth personal and medium to small business in Michigan. Does anyone know of a good source to get average premiums for those products?

What product lines?

 

[Markthebroker]

I exclusively write commercial p&c here in Ca and I can tell you the two don't correlate. Any other experienced agent will tell you the same thing. I've been doing this 12 years. The net worth of the individual has nothing to do with their business premiums.

There are plenty of roofers and truckers that may make next to nothing and have huge premiums, while a tech company or consultant can make money hand over first with small premiums.

Furthermore, this is a terrible time to get into p&c.

If you are writing a business plan, and don't know this, I suspect there are a lot of other things that you don't know that are missing from the business plan.

 

[Tahoe Ray]

I exclusively write commercial p&c here in Ca and I can tell you the two don't correlate. Any other experienced agent will tell you the same thing. I've been doing this 12 years. The net worth of the individual has nothing to do with their business premiums.

There are plenty of roofers and truckers that may make next to nothing and have huge premiums, while a tech company or consultant can make money hand over first with small premiums.

Furthermore, this is a terrible time to get into p&c.

If you are writing a business plan, and don't know this, I suspect there are a lot of other things that you don't know that are missing from the business plan.

And yet, in the disability market income correlates directly with the premium of the policy.

That's why I asked what market.

Your last paragraph is 100% accurate (I'm sure the rest is accurate too, I just don't know anything about commercial P&C other than all of you guys complain about it lol)

 

[Bob Fox]

I exclusively write commercial p&c here in Ca and I can tell you the two don't correlate. Any other experienced agent will tell you the same thing. I've been doing this 12 years. The net worth of the individual has nothing to do with their business premiums.

There are plenty of roofers and truckers that may make next to nothing and have huge premiums, while a tech company or consultant can make money hand over first with small premiums.

Furthermore, this is a terrible time to get into p&c.

If you are writing a business plan, and don't know this, I suspect there are a lot of other things that you don't know that are missing from the business plan.

I suspect you are correct but that is why I came here for help. I guess the better question would be. Is there a resource to find the average cost of insurance polices based on different products. I can go online and find the average cost of an auto policy here in Michigan but that seems to be it.

 

[Markthebroker]

I suspect you are correct but that is why I came here for help. I guess the better question would be. Is there a resource to find the average cost of insurance polices based on different products. I can go online and find the average cost of an auto policy here in Michigan but that seems to be it.

For this and many other reasons, I would suggest you go work for an agency for a year or two before you consider opening an agency of your own.

 

[Allen Trent]

I suspect you are correct but that is why I came here for help. I guess the better question would be. Is there a resource to find the average cost of insurance polices based on different products. I can go online and find the average cost of an auto policy here in Michigan but that seems to be it.

What SIC codes?

Medicare premiums?

Group health?

Umbrella?

D&O?

Fidelity Bonds?

E&O?

Flood?

Sexual Molestation?

 

[Al3x Lee]

I suspect you are correct but that is why I came here for help. I guess the better question would be. Is there a resource to find the average cost of insurance polices based on different products. I can go online and find the average cost of an auto policy here in Michigan but that seems to be it.

That's because P&C is immensely more complex than the general public believes it to be. There are really too many factors at play to find much of an average, and those factors can be constantly changing.

I agree with @Markthebroker , you're not going to walk blindly into this industry, no matter how much research prior, and find any level of success starting your own agency, imo.

 

[Markthebroker]

I just don't know anything about commercial P&C other than all of you guys complain about it lol)

Well, I think you know just about all you need to about the p&c market, then. It's a goddamn sh*tshow.

 

[Al3x Lee]

Well, I think you know just about all you need to about the p&c market, then. It's a goddamn sh*tshow.

Yeah, it's easy, you just smile at people and let them know they're getting non renewed, their premium is doubling and their coverage is halving