Going Out on Your Own As an IA

[GXR2]

I work for a large, independent agency. Many years experience, hard working, dedicated. Experience quoting and issuing multiple companies, working with multi-rater, agency management software, and everything that goes with being an IA.

I quote and issue, and remarket all my own business, handle a good portion of customer service work.. Etc.. Etc.. I pretty much do it all for 8 new, 4 renewal commission. I know I can do better.

I'm thinking the next logical step for my career is leaving the independant agency and going out on my own as an IA. I don't own my book at the agency so I would be starting over. It would just be me in the beginning.

What organization does one get started with that will provide appointments?
What services do they provide? -- multirater? IT support? Etc...if any.
What are production requirements?
Startup costs?
Ongoing costs?
Is an office required?
What can one expect as compensation?

Thanks

 

[insurance1822]

Lookup Shawnwalker on this forum & talk with him.

 

[insurancemansam]

What state are you in?

 

[indienoise]

Do you have any kind of agreement with your agency that bars you from getting appointments with the same carriers? You'd think if you've been at it for a few years, they could take a look at your production history and might get you the appointment without going to a cluster. It's worth a shot, anyway. Unless you simply don't want to be bothered with it, but those cluster agreements don't come free. It might or might not be worth at least considering, depending on your priorities.
Normally, some sort of office is going to be required, because as I understand it, clusters don't always guarantee you appointments, you still meet with carrier reps, etc. Day one profit sharing is a big perk, sure, but you have to make sure the group as a whole is actually profitable, otherwise you don't actually see that benefit.
I'm completely on my own, my software costs less than 200/month. Rater and AMS. My ITC website was about 500 startup and it's about 60/month. Then just a few bucks for phone/fax.
I'm fortunate to be in a situation where I don't have to pay a lease, so that's a big savings. I already had all my hardware I needed because even though I was with a captive outfit, I was just running a satellite office operating pretty well on my own, no real support. Which is why I went IA. You'll save some if you don't need a sweep account, but in my area taking cash is kind of a necessity, so I probably spent about 7 or 8 grand for startup costs, part of which was buying the sign from my prior agency principal so I could swap out the insert.
Between marketing/software/memberships/phone & fax etc., I probably spend in the ballpark of about 1200/month. Commissions will vary by carrier and possibly location, but figure between 15-20% for preferred business, and 10-15 for nonstandard. If you do much in the way of nonstandard, be sure to request commission as-earned. Contingency can be huge in this department, I've got a nonstandard carrier that I should be getting 17% on this year, and can go as high as 21%.
If you check out any clusters/groups, and you're like me and don't need much support, and real ownership of your business and a simple, fair exit strategy are paramount to you, I'd talk to Terry at Insurance Pro Agencies. If you're out west, you might want to talk to PIIB.
Good luck to you.

 

[GXR2]

Thanks for the generous info. Really appreciate the help.

Looks like with PIIB one needs to already be an established agency for at least two years.

Any independent companies work with start-ups?

 

[shawnmwalker]

GXR2,


Give me a call. I wont cram anything done your throat. It all depends on where you are and what you want to create.

I'll get you pointed the correct direction even if that is not my direction.

 

[insgrl2000]

Shawn, do you do anything in Louisiana?

 

[cfuller4080]

Thanks for the generous info. Really appreciate the help.

Looks like with PIIB one needs to already be an established agency for at least two years.

Any independent companies work with start-ups?

Talk with shawnmwalker they have a great group!

 

[agentinsouth]

Shawn, do you do anything in Louisiana?

Louisiana is not hard to get started if you know where to look.... PM me.