Commercial-Indi Agency, Expectations and Limitations

[Rick Deckard]

I did not realize the limitations of a small agency and also Commercial Insurance in general when I started this process but I am quickly learning there are many businesses that I simply cannot help. The Middle Market of $50,000-$100,000 in premium up to say about $1MM is not realistic. it feels like I have to target small business owners who the majority of the time are overlooked by most bigger agencies. They don't waste the manpower to go fight over a $5,000 account.

It hit me that if I continue on with a small independent agency that I am going to have to write a lot of policies to try and hit a decent amount of premium per month. Have others come to this realization. Are you hunting in areas where the premiums are well within your range or scope of what you can offer? Some of the bigger agencies can do things that we simply can't as small timers. These bigger agencies are always recruiting...I wonder why since they have it so easy, right? Everyone of those agents must be making 6 figures

I want to specialize in Commercial over Personal Lines but I am realizing it has a lot of challenges just getting into the right market.

 

[VolAgent]

I believe you have realized the reason why the grass is greener on the other side of the fence. The guy is having to shovel more .... which is what keeps the grass so green.

I am embarking on a plan to work small commercial myself. The advantage is that generally there is less competition, perhaps just your captives. The downside is that the accounts are smaller and I suspect some are married to their agent, just like in personal lines.

That said, as you grow, you can eventually move to target larger and larger accounts. You gain experience, your book grows and your reputation grows. Remember, by and large, all large agencies were once small. Most don't make it to become big, but some do.

As to why they recruit, I suspect middle market and definitely large market is very, very competitive. I bet a lot of producers just can't cut it.

 

[Rick Deckard]

Excellent points Vol

 

[Key2Success]

I did not realize the limitations of a small agency and also Commercial Insurance in general when I started this process but I am quickly learning there are many businesses that I simply cannot help. The Middle Market of $50,000-$100,000 in premium up to say about $1MM is not realistic. it feels like I have to target small business owners who the majority of the time are overlooked by most bigger agencies. They don't waste the manpower to go fight over a $5,000 account.

It hit me that if I continue on with a small independent agency that I am going to have to write a lot of policies to try and hit a decent amount of premium per month. Have others come to this realization. Are you hunting in areas where the premiums are well within your range or scope of what you can offer? Some of the bigger agencies can do things that we simply can't as small timers. These bigger agencies are always recruiting...I wonder why since they have it so easy, right? Everyone of those agents must be making 6 figures

I want to specialize in Commercial over Personal Lines but I am realizing it has a lot of challenges just getting into the right market.

Offer the client an enticing option that others (large or small agencies) aren't or can't and the tables are turned....they can't compete with you. You are correct....you must get into the right market.

 

[VolAgent]

Offer the client an enticing option that others (large or small agencies) aren't or can't and the tables are turned....they can't compete with you. You are correct....you must get into the right market.

I realize you mean this to be helpful.

I have found value-adds are often gimmicks and rarely matter. Nothing beats real customer service, nothing.

Rick, I have recently begun marketing to captive agents. I have heard time and time again, yeah the guy we use doesn't return calls, emails, etc. If they are doing this to their referral sources, what are they doing to their clients? There is tons of business for the taking, you just have to show them you will be there for them. The hardest part is getting that first chance.

 

[Key2Success]

I realize you mean this to be helpful.

I have found value-adds are often gimmicks and rarely matter. Nothing beats real customer service, nothing.

Rick, I have recently begun marketing to captive agents. I have heard time and time again, yeah the guy we use doesn't return calls, emails, etc. If they are doing this to their referral sources, what are they doing to their clients? There is tons of business for the taking, you just have to show them you will be there for them. The hardest part is getting that first chance.

VolAgent...We've been marketing "successfully" to "qualified" (which you did not) agents and brokers for years....and you sir don't have a clue as noted and proven in numerous past discussions..... The fact that you are here continuously posting day in and day out is quite telling. ....Stick with your "gimmicks"!

 

[VolAgent]

VolAgent...We've been marketing "successfully" to "qualified" (which you did not) agents and brokers for years....and you sir don't have a clue as noted and proven in numerous past discussions..... The fact that you are here continuously posting day in and day out is quite telling. ....Stick with your "gimmicks"!

I'm quite curious. Do actually believe the stuff you type, because no one else does.

 

[Key2Success]

I'm quite curious. Do actually believe the stuff you type, because no one else does.

I'm quite curious.....are you delinquent in taking your meds or is trolling subjects in which you have nary a clue just your nature? Be honest.

 

[VolAgent]

I'm quite curious.....are you delinquent in taking your meds or is trolling subjects in which you have nary a clue just your nature? Be honest.

I guess you really do believe it. It must be nice living in a fairy tale land.

 

[Key2Success]

I guess you really do believe it. It must be nice living in a fairy tale land.

I'll repeat....read slower....I'm quite curious.....are you delinquent in taking your meds or is trolling subjects in which you have nary a clue just your nature? Be honest.