How easy or difficult is it to sell accounts?

[Strategy101]

I run a really small insurance agency selling p&c. I do not have many accounts right now and I actually shy away from generating too much business right now for a few reasons. One of the main reasons is because I don't feel fully committed and not sure if I really want to do this long term. But I also need to earn a living right now so I am wondering if I were to sell a ton of insurance over the next year and don't want to deal with servicing or hiring someone to service if i could easily sell them.

 

[Markthebroker]

I run a really small insurance agency selling p&c. I do not have many accounts right now and I actually shy away from generating too much business right now for a few reasons. One of the main reasons is because I don't feel fully committed and not sure if I really want to do this long term. But I also need to earn a living right now so I am wondering if I were to sell a ton of insurance over the next year and don't want to deal with servicing or hiring someone to service if i could easily sell them.

I don't think either one of us know what you are actually asking. It sounds like you want to succeed without doing any work. You do, however, make me think of something Edison said.

"Opportunity is missed by most people because it is dressed in overalls and looks like work." Thomas Edison

 

[Strategy101]

I don't think either one of us know what you are actually asking. It sounds like you want to succeed without doing any work. You do, however, make me think of something Edison said.

"Opportunity is missed by most people because it is dressed in overalls and looks like work." Thomas Edison

I think you are overthinking my question. Let's just say I manage to add 150 accounts over the next year. I then realize it's too much for me to service but I am not interested in hiring a customer service person either. How easy would it be for me to find someone who would want to buy those 150 accounts?

 

[Markthebroker]

It wasn't clear that was your question. The subject line asked about selling accounts. Now you are asking about how easy it is to sell a book, now that is a different question.

It would depend on what type of clients, such as home or auto, admitted, non admitted, etc. A book will be less valuable if it's only a year or so old. I am guessing 1x or 1.5x commissions. It's not really worth it if you are just going to sell in a year or so. How easy will it be to sell? Who knows how the market will look in a year.

There are others on here that have more experience buying and selling personal p&c books. You should probably change your subject line so you can get some good answers.

 

[walthamny]

You will get a higher price for your book of business if you are passionate about this business. If the buyer feels you are not that type, they will smell that and wont pay a premium for that book. SO your reasons for selling should be something better than what you are proposing.

 

[DayTimer]

@Markthebroker what do home and auto commissions look like? For example, a $1000 annual premium FE policy might pay $1250 FYC and then a 2-5% renewal for maybe 10 years.

What would one expect from a $1000 annual homeowner's policy?

A $2500 annual auto policy?

Thanks!

 

[DonP]

Most pay 10-15% a yr . But remember p@c probably has the best stability of any insurance . How often have you switched your car or homeowners insurance company ? I've been with the same auto and homeowners 30 plus years and never even met the agent . I've only dealt with csr reps . Thinking about all my friends same thing .What a cash cow .

 

[CALTCAgent]

One of the main reasons is because I don't feel fully committed and not sure if I really want to do this long term.

I like your honesty that is exactly how I have felt about the insurance business for the past 23 years, so I can relate. Not sure why I kept going, I guess I can't sing or dance.

But I also need to earn a living right now so I am wondering if I were to sell a ton of insurance over the next year and don't want to deal with servicing or hiring someone to service if i could easily sell them.

I don't have the answer but I think that is a reasonable question. I would be curious if a P & C guy has a good answer.

 

[Markthebroker]

@Markthebroker what do home and auto commissions look like? For example, a $1000 annual premium FE policy might pay $1250 FYC and then a 2-5% renewal for maybe 10 years.

What would one expect from a $1000 annual homeowner's policy?

A $2500 annual auto policy?

Thanks!

I'm commercial p&c, I haven't written a personal p&c policy in about 7 years, even though I still have some on the books. @DonP pretty much nailed it. Commercial p&c has a bit higher commission, and significantly higher retention, but it's the same ballpark.

 

[DHK]

I run a really small insurance agency selling p&c. I do not have many accounts right now and I actually shy away from generating too much business right now for a few reasons. One of the main reasons is because I don't feel fully committed and not sure if I really want to do this long term. But I also need to earn a living right now so I am wondering if I were to sell a ton of insurance over the next year and don't want to deal with servicing or hiring someone to service if i could easily sell them.

First, if you're not really into it... I believe it will affect your ability to get what you say you want.
- If you're into it... you're passionate.
- If you're not... it's stress.

Second, SuccessionLink can help you to sell your book of business... depending on whom you are selling for. There are other places that will help you sell your book, but I'd start there.

Succession Link: Succession Link - Trusted Marketplace for Financial Professionals