Can A Successful Entrepreneur Open An Insurance Agency?

[TwiLight]

You're a wealth of good info, really appreciate that. I'll look into it. So you can take the 65, no 6 or 7 required?

Correct. The 65 is a bear though.

 

[Waldo]

You're a wealth of good info, really appreciate that. I'll look into it, so let's say I'm a new agent for Life and Health with nothing on books toward those lines (green as it gets). What does the process for being setup look like?

Bumping the follow up edit down the thread.

 

[Verbgravy]

Depends on the cluster.... SIAA requires all your appointments, including L&H and they will be paying out at well below Street level commissions.

I think you offered up some valuable advice, but it's also very broad. There's a lot of negative and not entirely correct statements about P&C. Do you feel like you're a completely unbiased party? Some of those statements would almost seem geared towards placing an organization, like yours for example, in a better light than some other very quality organizations.

There's a lot of good organizations out there on both the P&C and L&H side of things. If your passion is in financials services, go after that. Just make sure you have a full understanding of how it all works. I'm sure it's not intentional, but I believe skipper has cast a much more negative light on P&C and contracts than what the reality of it is.

 

[Waldo]

I just enjoy helping the client regardless of the line. I'd like to learn much more about L&H through experience because for the most part I'm a captive P&C guy doing L&H when needed. I do enjoy having all 4 open to me for multi lining and offering a full service. My goal would be to get more knowledge across the board before opening up a business. I do love this forum though and all the knowledge its members offer. I plan on doing quite a bit of research toward any routes mentioned. There are so many ways to be successful in insurance.

 

[Reliantpa]

First of All, An insurance agency provides a great vehicle for financial professionals interested in small business ownership. But you set out to before launch an insurance agency, Will need to gain insurance industry experience. After that need to decide will scope of insurance services your agency will provide.

 

[scooter33]

I started scratch with no industry or sales background...so yes, it's possible. If you are looking at SIAA, I would be very careful. The fees are crazy and they pretty much have you by the balls because it's very expensive to get out of the contract.

 

[PhilL]

I am always glad to talk to anyone about these types of issues. It's what I do everyday. I'm a licensed P&C agent and also have a life & health license. I have been in the industry for 40+ years and while that does not make me an expert (for sure) I am glad to address some of these concerns and give some relative advice. Feel free to contact me.

 

[shawnmwalker]

Michigan is a tough state. Given the PIP Laws there the carriers are reluctant to expand their distribution channels. (I am surprised no one has mentioned the PIP laws in MI)

P&C is hard in a good environment. In Michigan it is even harder. Not impossible but given the Carriers apprehension to MI it will be a tough go until those laws get changed.

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Typically with a P&C aggregator you can have your L&H stuff out side of the group. Depends on the cluster..

 

[TwiLight]

Michigan is a tough state. Given the PIP Laws there the carriers are reluctant to expand their distribution channels.

P&C is hard in a good environment. In Michigan it is even harder. Not impossible but given the Carriers apprehension to MI it will be a tough go until those laws get changed.

It is obvious you do not know the MI market.

That was true pre 1998 not since. Carriers have been expanding in Michigan for the past 18 years especially in Auto Insurance since the introduction of credit scoring/rating in 1996.

The PIP in MI is higher in cost than other States due to the fact that we are the only State that covers Unlimited Medical Expenses and the State Fund that covers costs over $350k has been getting tapped more with the shift from Personal and Group health plans no longer covering auto accidents.

In Kind, MI BI/PD liability costs are the lowest of any State as we do not use the court system for medical claims. One hand washes the other. I am not saying we are the lowest rate in the county, more less middle of the pack.

The only big drawback in the MI auto market is the shrinking population.... We have lost almost 1 million residents the past 15 years and a shrinking market means reduced pool of risk and a glut of agents competing for smaller market share.

That means fewer new appointments from companies and an emphasis on proven profitability from agencies.

Skipper

 

[shawnmwalker]

"The PIP in MI is higher in cost than other States due to the fact that we are the only State that covers Unlimited Medical Expenses and the State Fund that covers costs over $350k has been getting tapped more with the shift from Personal and Group health plans no longer covering auto accidents." (Skipper) -This, I believe, makes carriers apprehensive to expand their channel in MI.

Also is there a law in MI that make it almost impossible to terminate a contact with an agent once a carrier gives it. Making it almost impossible to shrink the distribution channel if they wanted to?

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CO had the same problem years ago with PIP. You got to fix that for us Skipper!