Farmers Insurance Agency

Feb 21, 2016

  1. Maxahearn
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    Maxahearn New Member

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    State:
    Georgia
    I am thinking about starting a scratch agency with Farmers in Georgia? I have plenty of experience in the insurance business. I understand that Farmers has been writing in GA for about three years and they are growing rapidly. I have about 100k to invest plus they have what seems like a great start up package with bonuses and matching commissions. I have only been in GA a short time and I am looking for commentary from either existing Farmers agents or former Farmers agents. Thanks
     
  2. indienoise
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    indienoise Guru

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    State:
    South Carolina
    Just curious, if you've got money in the bank and considerable experience, why open a captive agency? I mean, you're certainly free to do anything you want, but what's the motivation? Why Farmers vs. independent?
     
  3. Derrick
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    Derrick Super Genius

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    State:
    Michigan
    Well OP stated that in GA, Farmers has been expanding rapidly. I'm not sure what contractual agreements are made, but perhaps he could develop some pretty solid relationships with COIs because Farmers-GA has great rates right now. Once the honey moon period comes to an end, which could be today or it could be tomorrow, he can roll that business to an independent agency.

    idk.
     
    Derrick, Feb 22, 2016
    #3
  4. Early
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    Early Expert

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    State:
    California
    Having been both an agent with Farmers and Independent, I say without hesitation, run away from Farmers! As fast as you can! I was with them for quite a long time. I had built my agency to about $6M just to have them get out of large segments of the marketplace. I lost 35% of my agency's income. Then, about 15 years later, again building my agency to over $7M, they did it again. And remember, you can't put these lost accounts with another carrier. Read their new contract. Let your attorney read it. Farmers is a very large company that doesn't give a hoot about its agents. Your local Farmers reps will tell you a warm and fuzzy story but the corporate folks in LA and Zurich have their own agenda. Just look to see how poorly Farmers is doing in their established states. They have very high rates, a deteriorating client base and apathetic underwriters. Check out how many Farmers agencies are for sale online. I've never been happier that I started my Independent agency. It's been simply wonderful!
     
    Early, Feb 22, 2016
    #4
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