Captive to Independent in California

[CaNewAgent]

My wife is a captive agent focusing on P&C and Life. Her agency currently has about 1,500 clients. She still has a year to go before her subsidy to the carrier is paid off. She would like to go independent at that time.

One of the problems she will face is starting a new agency from scratch again.

Which companies should she try to be appointed with? Should she try to go direct to each company like Mercury/Safeco or contract with a middleman who already has contracts with the good companies?

Thanks

 

[Denise509]

My wife is a captive agent focusing on P&C and Life. Her agency currently has about 1,500 clients. She still has a year to go before her subsidy to the carrier is paid off. She would like to go independent at that time.

One of the problems she will face is starting a new agency from scratch again.

Which companies should she try to be appointed with? Should she try to go direct to each company like Mercury/Safeco or contract with a middleman who already has contracts with the good companies?

Thanks

So far the biggest problem I've had is getting carrier appointments. I've been able to get a few with non-standard carriers like Progressive and Unitrin. Appointments with "preferred" carriers are super hard if not impossible to get for scratch agencies. It helps that your wife has experience because preferred carriers look for that. If you have savings to live off and pay for your office expenses that will help even more. From the word "subsidy" I assume she was with Farmers? Be careful about that non compete. Take it to a lawyer and check if there's any way around it... I hear that appointments are even harder to get in CA than the state I'm in, so you may want to take a look at clusters or wholesalers like Superior Access or Insurance noodle. I can't really give you advice on that part because I'm still deciding on whether or not to become a member of S.A.

 

[OCinsurance]

We are looking for a new producer and an in bound sales representative in our Orange County office. These could be two separate positions or the same, depending on the individual. We have a decent amount of appointments and would be interested in speaking to someone seeking position, such as someone looking to go independent.

For the in bound personal lines representative, we have exclusive leads.

We are located in Orange County. Please feel free to contact me.

 

[CaNewAgent]

So far the biggest problem I've had is getting carrier appointments. I've been able to get a few with non-standard carriers like Progressive and Unitrin. Appointments with "preferred" carriers are super hard if not impossible to get for scratch agencies. It helps that your wife has experience because preferred carriers look for that. If you have savings to live off and pay for your office expenses that will help even more. From the word "subsidy" I assume she was with Farmers? Be careful about that non compete. Take it to a lawyer and check if there's any way around it... I hear that appointments are even harder to get in CA than the state I'm in, so you may want to take a look at clusters or wholesalers like Superior Access or Insurance noodle. I can't really give you advice on that part because I'm still deciding on whether or not to become a member of S.A.

Hi Denise,

Not Farmers but similar. We are planning ahead. She will give notice when it is appropriate and then sign up with someone. I can't imagine how this would affect any no-compete clauses she had in her contract. She does not plan to call her previous client base. She will start again from scratch. It sounds like the clusters is the best way to go. I appreciate the names I can look up.

CaNewAgent
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We are looking for a new producer and an in bound sales representative in our Orange County office. These could be two separate positions or the same, depending on the individual. We have a decent amount of appointments and would be interested in speaking to someone seeking position, such as someone looking to go independent.

For the in bound personal lines representative, we have exclusive leads.

We are located in Orange County. Please feel free to contact me.

OC,

I appreciate the thoughts. She is only interested in being a business owner and agent, not a producer.

Thank you,

CaNewAgent

 

[farmersluis]

I am kind of in the same position. I am currently captive, but plan on going independent. The problem is getting appointed. The experience I had with Superior Access and Insurance Noodle was a total joke. I can't believe how hard it is to get a simple auto and fire quote with them. Also, I cannot fathom how agents can work with no binding authority. Maybe I've been spoiled as a captive, but binding authority is something I feel I must have.

 

[Guest]

join a cluster..............

 

[xrac]

My wife is a captive agent focusing on P&C and Life. Her agency currently has about 1,500 clients. She still has a year to go before her subsidy to the carrier is paid off. She would like to go independent at that time.

One of the problems she will face is starting a new agency from scratch again.

Which companies should she try to be appointed with? Should she try to go direct to each company like Mercury/Safeco or contract with a middleman who already has contracts with the good companies?

Thanks

On page 18 & 19 of this magazine III - February 2012 is an article about this subject written by someone who made the jump.