Future of P&C Insurance Agencies

[xrac]

I'm actually doing very well now. I have a $11M agency and rank in the top .1% countrywide with my carrier. It's been an excellent ride so far and I want it to stay that way. As far as bringing the kids aboard, it would be tough to do. They are 5 and 9. : )

And there is really no need for a vacation, my operation is very well run and I rarely have to go in to the office. I can pretty much do what I want, when I want. I haven't written an application in years, much less answered the phone.

I appreciate your concern, but my batteries do not need to be recharged. I am actually very happy with my business. We are growing and very profitable. I have an excellent staff that handles everything for me. I'm simply thinking about the future and trying to make the best decisions possible for my family.

I think you have been on this board before under a different name and I think I know your company. I also know you are a pretty sharp cookie.

I will say that I talk to a licensed agent today who works for a SF agent. She is a sharp cookie who has been involved with sales a long time but has only been in insurance 3 years. I asked her if she was going to try for her own SF agency. She told me that she originally intended to do that but the growth of internet competition and the odious SF new agents contract has caused her to no longer consider that option.

 

[161]

I think you have been on this board before under a different name and I think I know your company. I also know you are a pretty sharp cookie.

I will say that I talk to a licensed agent today who works for a SF agent. She is a sharp cookie who has been involved with sales a long time but has only been in insurance 3 years. I asked her if she was going to try for her own SF agency. She told me that she originally intended to do that but the growth of internet competition and the odious SF new agents contract has caused her to no longer consider that option.

Thanks. I think.

No, I have never been on this board under a different name. I have only been here a few times just to bounce a question or two. And I'm not sure which company you are thinking of, but it is Allstate.

I'm just keep doing what I do now and see what happens. I will continue investing in other income producing opportunities, that's for sure.

Good luck everyone. I really don't see how the internet can entirely replace the value proposition that we bring to our clients.

 

[Sales71]

161 I think your worry should be Allstate not the Internet. They will get rid of the clients for u. I am sure you bought a lot of that 11 mil agency.

 

[161]

161 I think your worry should be Allstate not the Internet. They will get rid of the clients for u. I am sure you bought a lot of that 11 mil agency.

Actually, I started scratch about 16 years ago. We're not growing as much as we used to, but we still grow 1-2% each year. With 92% retention, it takes about 160 items each month just to break even.

Allstate is not as bad as some would make it out to be. They have their share of problems, but what company doesn't?

 

[Sales71]

Actually, I started scratch about 16 years ago. We're not growing as much as we used to, but we still grow 1-2% each year. With 92% retention, it takes about 160 items each month just to break even.

Allstate is not as bad as some would make it out to be. They have their share of problems, but what company doesn't?

So ur telling us on This forum u never bought an agency in ur 16 years career with your company. Hard to believe u.

 

[djs]

Why is that so hard to believe?

 

[BTFuzz]

Growing to $11m organically in 16 years is incredible...unless you're heavy in commercial...but still...

 

[161]

So ur telling us on This forum u never bought an agency in ur 16 years career with your company. Hard to believe u.

No, I didn't say that. I simply said I started from scratch. What YOU said was "I am sure you bought a lot of that 11 mil agency." The key words in that statement were "a lot". Since that was not true, I felt no need to elaborate. But if you really must know...

I started from scratch in 1995 and bought $800K in 1999. I grew to $9.2M in 2010 and then bought another $1.8M.

Now, I wouldn't consider $2.6M out of $11M "a lot" (it's actually less than 25%), but feel free to think whatever you want.

Typical forum. Ask a simple question and it eventually turns into an attack on someone's integrity. Well, I am not a troll and while I do have thick skin, I will typically respond. I guess that's just part of my type A personality.

Not everyone is average. There is no need to assume so simply because you might be.

 

[CaptiveGuy]

That is really good growth, and even if you buy other books it's still yours nothing to justify really.

I'm glad to see that someone can grow their book over the $3-4m range after 10 years. A lot of agencies around me aren't concerned with growth at all but that's fine with me.

Back to your original question, your agency at that size is safe from the internet. You have the most valuable lead sources which are referrals from current clients to sustain you. If anything, the internet may prevent new business eventually but you have enough current clients to cross-sell.

 

[Bob Klee]

Fantastic Job 161!

I built two Allstate agencies from scratch [started in Oct. '95 in KY I did have an existing office & some seeded accts] in both KY & TN. KY took 6.5 years to reach $1.8M, TN took 5 years to reach $1.8. [hey, at least I learned something ]

Someone said I must have had rocks in my head to sell & start over again from scratch. I'd have had bigger rocks to let my wife/kids move without me!

Kudo's 161 as it is obvious you have done it the right way. It always concerns me a bit when agents say it is "X company's" fault I can't grow my agency. After 11.5 years with Allstate in two completely different markets I just don't buy that. I've seen so many like you over the years that just keep their head in the game & keep on selling/growing regardless of things they cannot control.

IMO there will always be a need for good agents at the local level. Thanks for sharing.

161, I was at career school in Sept '95 in Northbrook, when were you there?