Experienced P&C Agent Going Out on His Own...lots of Questions

[jwterry3]

I have been working for some of the best independent agencies in SC for 9 years and I have finanlly had enough and I am starting my own agency.

As obvious as it is, I am trying to keep my agency super effecient all the while keeping start up cost as low as I can year 1. Those who have done this before, your thoughts,experience, and ideas are priceless as is websites like this.

I know I will have: rent, biz insurance for agency, CPU/phone systems, area biz licenses, office supplies, taxes.

(1). In addition to these, I plan on having to use some sort of wholesaler to fill marketwise for the markets I can not get direct....thinking either Insurance Noodle, NIA, or Superior Access. Which would you recommend???? Do these companies issue certs for you??

(2). I am also going to entertain the idea of an agency managament system to handle prospecting, certs, policy managemnt,etc of the policies that I will not have issued through the wholesaler. Thinking about Quickfile or TAM Online. Thoughts and costs associated with each????

(3). The last cog of expense is going to be the develeopment and hosting of my website. My readings tell me that this is a great selling tool that I should invest some money in. Thoughts?

That is the first round of questions I have now.. Thanks in advance for your help

I will be selling in South Carolina. 60% commercial (small to medium) P&C and 40% personal P&C.

 

[moonlightandmargaritas]

This would be a better fit in the "P&C" section of the Forum.

 

[djs]

It sounds like you have the experience in what you need to know, you just need to trust your instincts a bit. For instance, when it comes to which is the best wholesaler, you will have to figure this out, it will depend on what markets you want to sell to and what the wholesaler has available in your state.

Both of the agency management systems you mention work. From there, it depends on what you want to do with them.

For P&C, especially focusing on commercial, you do need a web presence, but the web site will not be what drives the day to day business to you. That part will take a lot of legwork, so you'll need to add some things to your costs:

- Chamber of commerce membership (not required, doesn't hurt)
- Networking group (such as BNI, LeTip), again, only if you want, but you'll need a door opener somehow.
- Telemarketer - How do you expect to get doors opened to you?
- Direct mail campaigns
- Any other marketing efforts you want to do.

You don't have to do all of this, or any of this, but you will need a marketing plan to get doors opened for you. Even things like chamber of commerce, with the other 50 insurance agents that belong, don't really solve the marketing aspect, but it can help with being seen as part of the community.

Good luck on your endeavor.

Dan

 

[jwterry3]

What can I expect to pay for webite developement/hosting. I have been qouted everything from 1-4k/yr for this.

Also, what are the annual expenses for:
-TAM Online
-Quickfile

Wouls like to hear the pros and cons of wholesalers mentioned as well.

Thanks

 

[Tim Hoelle]

Great suggestion re chamber and similar memberships. Plan to spend some time at Rotary, etc as well. Budget the money AND the time to go to these events.

You'll want to/need to generalize relative to the types of accounts you solicit coming out of the gate but try to find one or two areas in which you can specialize, focus your attention, gain technical or industry specific knowledge and become known. Think about growth industries vs the same industries everyone else is going after, but you also must keep your geographic limitations in mind.

Take a serious look at "freelance" websites (google freelance services or similar). You can hire some very talented people online for a fraction of the cost of big name ad agencies and web designers. If you're not comfortable with that because you must meet the person, then put an ad in Craig's List under "gigs" and use other means to find college students or other local, young, talented and reasonably priced workers for web design, telemarketing, etc.

Finally, look at locally based or at least regional wholesalers vs a national "chain". You want your customers to buy from you due in part to your relationship with them - apply the same logic to your markets wherever possible, including wholesalers.