Considering Becoming an Agent

[djkfender5]

I have 23 years in the industry (auto claims specifically) and I've always toyed with the idea of opening an agency. I have enough capital to do it, but I see a lot of conflicting info on how to go about it.

I have spoken to State Farm and Allstate recruiters. Although they are up front about me being an independent contractor and outside of a sign on bonus its all on me financially, they paint a fairly pretty picture about their program's potential. State Farm even told me they would place me in an already established agency with an established book if someone retires or leaves with no fee involved.

I have also talked to independent agent franchises (We Insure & Brightway). I like the model and I am leaning towards going independent, but I'm not 100% confident that the franchise fee is worth it.

Has anyone opened any of these recently (past year or so)? What has your experience been like? Is it worth it?

 

[fed up]

Do not go with Allstate until Tom Wilson is no longer in charge.

 

[Matthew Labb]

First thing, New York can be a frustrating state to get up and running in. On the indy side, you face substantial obstacles in getting carrier appointments if you don't join a network.

Agency licensing is also a slow process compared to many states. Just throwing that out there!

On the carriers...don't take my word for it, I am naturally biased towards joining a network because I do business development for a network. I always tell people hey call the carriers on your own, explore your own sphere of influence, see if you can get carriers without a network. Maybe you can!

Again, I'm biased but I think the captive model is dieing and there's actions from captive carriers that support this thesis. Why is All State allowing for indies to write their products now?

Why did NW go full on indy not long ago? IMO the writing is on the wall - indy is the way of the future.

Why is it becoming more difficult to find suitable buyers for captive books while many (most?) established indies are actively seeking books to purchase?

Why did SF buy Gainsco? Why did American Family buy Ameriprise? Farmers bought Metlife?

Back to indy talk....The franchise fees with places like Brightway and GH are substantial. They are worth looking at though!

Ultimately, I would say that you should make SLOWLY when researching potential indy networks. Talk with 3-4 networks, review their contracts before consideration of joining one.

Be skeptical of any network that is rushing you to make a decision. Show an attorney the contracts but also make sure you don't break an NDA.

I upload quick 60 second videos on a weekly basis designed to help demystify the search for a P&C network. I don't promote our network in these videos, but rather talk about concepts you need to keep in mind when evaluating contracts, fees, and everything in between.

Check it on out Horizon Agency Systems - YouTube

Best of luck and check back in to let us know how the journey went!

 

[Al3x Lee]

I wouldn't want to start an agency in the current environment, but I don't have 23 years of experience

 

[Markthebroker]

I don't know about NY specifically, but generally speaking, this is a terrible time to get in on the production side as an owner.

This could be an OK time to go work for someone as an agent and see how it works out for you.

Just because you have 23 years experience in claims, doesn't mean you'll be any good at producing. I know plenty of people that know the industry inside and out that couldn't sell insurance to save their life.

 

[Al3x Lee]

I know plenty of people that know the industry inside and out that couldn't sell insurance to save their life.

I don't know how to sell, I just operate off the philosophy that even a blind squirrel finds a nut once in a while

 

[Allen Trent]

I don't know how to sell, I just operate off the philosophy that even a blind squirrel finds a nut once in a while

While that is true, & it can be true that squirrels always find a way into the bird feeder......this picture also illustrates the consequences squirrels can have when they are over confident & think they know it all

 

[Markthebroker]

While that is true, & it can be true that squirrels always find a way into the bird feeder......this picture also illustrates the consequences squirrels can have when they are over confident & think they know it allView attachment 8431

Duuuuuude.

 

[Markthebroker]

I don't know how to sell, I just operate off the philosophy that even a blind squirrel finds a nut once in a while

Huh. Do you even own a cape?

 

[Allen Trent]

Duuuuuude.

Biologically, it is obvious Mr squirrel "was" certainly a dude. How it identifies today is completely uncertain, but I can tell you it never regained the confidence that it once had