Health & Life AND P&C Separate Lines How Common

[squeed]

I didn't want to hijack my own prior post:

Testing My Theory About Getting Started

brkrsrevolution asked me why focus on all lines, just focus on either Health & Life or P&C.

That got me thinking, I thought that most agents sold every line.

But now I'm thinking maybe it's more common that some sell just Life and Health and others sell just P&C.

My question is, what is the norm ?

-S

 

[VolAgent]

I'd say the answer is, it depends.

On the organized career agent side, there are certainly many, many more that are life and health only versus P&C only. In fact, many organizations are life only, health only, or even a specialty of life or health only. I am sure there are some companies with a career system that are P&C only, but there certainly aren't as many, nor do they attract as much attention as the life and health guys.

I would say the indy side is all across the board. Plenty of folks that specialize in one area, along with plenty of others that handle all lines. Also, you'll find many have built their own agency with specialists in each field. I would venture to guess that the indy multi-line guys are much stronger in all areas than the State Farmers, Allstaters, and Farmers of the world. I get the impression they only do life because the company holds a gun to their heads to make them.

That said, I would follow the advice given and pick one area or the other for now. Get strong in one and then branch out. Odds are, you will find someone in the other area that will be willing to share business and work with you. I have encountered quite a few P&C guys that claim to do life and health, but if you probe and build a relationship, you will find that is maybe 5 lives a year, in a good year. If you can help them see why it is in their best interest to pass that business to you and you give them your P&C leads, then you have a great business relationship. Or vice versa if you'd rather focus on P&C. Clients may say the like all their business with one agency, but most find it hard to believe you are a specialist in every area. Build relationships, deliver value to the client, and still get all their business under one roof.

 

[djs]

A lot of people (the majority?) specialize in either life or health. These areas are easier to get started in, require less investment, and have a faster return of $$$$.

P&C agents tend to have a slightly different mindset. To be honest, a lot of life and health agents basically run a sprint, where P&C is more about the marathon. What do I mean? Life and health policies tend to have a high first year commission, with lower trails, where P&C is all about the renewals, not so much the first year.

Most P&C guys I know are life and health licensed. They may or may not focus in this area, but if they ever decide to do more than 5 life policies a year, they will either do this themselves or bring in a producer to do them. As with anything though, there is a threshold where it doesn't make sense to do things in house.

I'll save you some time though. Independent agents usually can focus on whatever they want and may chose not to really push life or health. Captive agents are almost all required to submit a certain number of life policies a year or lose out on bonuses, subsidies, or trips. A lot do find writing health a total distraction though. (Not sure, I think State Farm agents are required to write a certain amount of health as well).

You will find that even within these licenses, people specialize. For instance, in health some people specialize in individual plans (this is the majority), some specialize in group, or perhaps only small group or only large group.

In P&C, there are a lot of agencies that specialize in personal lines (home, auto, life) and a lot that specialize in commercial lines. Then you can find ones that specialize in aviation, inland marine, marine, construction, etc, etc.

I agree, unless you have someone to hold your hand through the process, start with one area, learn it well, then perhaps branch out a bit. On the surface, insurance sounds easy. When you dive in, there are a LOT of 'oh, by the way' type of things that affect the application you are submitting.

Dan