How to Work in P&C Without Working in Sales

[doublejay]

Hi,

I'd love some advice.

I really want to get involved in P&C and will definitely like to be a producer to some extent but I don't look forward to waking up every morning and saying "what should I do today?"

I also would really like to understand what it's like on the operations side of a P&C firm.

Can anyone point me to what kind of employment I should be seeking to accomplish my goals?

I just finished my P&C course in NY and have a B.A. in business. (I also have work experience in Mgmt. and Marketing).

Should I be looking for a postion as an underwriter?

p.s. I would consider transtioning to a producer type position in a few years.

 

[Josh]

If you want to do P&C and don't plan on being in sales, don't plan on making a lot of money. You can always try to work for a carrier (like being an underwriter), but that's a whole different ball of wax than running an agency.

Why do you want to be involved in it?

.

 

[doublejay]

If you want to do P&C and don't plan on being in sales, don't plan on making a lot of money. You can always try to work for a carrier (like being an underwriter), but that's a whole different ball of wax than running an agency.

Why do you want to be involved in it?

.

I have an open door invitation to get involved as a producer for an Independant agency in my area. There is also a chance that I could buy out the owners book of business when he retires (5-10 years).

I would definitely like to produce and even now I plan on spending several hours per week contacting existing leads. However, I want structure and I want to learn about the industry in a meaningful way.

The way I see it, there is always an opportunity to be a salesman (and I know there is good money for those who are succesful) but I am young and would like to learn a trade. I'd like to be able to have a fall back plan of taking a cozy 9-5 job and earn $60k/year.

And like I said, I feel that the two are not mutually exclusive.

So I'd like to consider some sort of CSR or Underwriting position. Just need some help figuring out what my choices are.

Thanks.

 

[Josh]

If you can find a job making $60k/year as a CSR or underwriter then you should take it.

Good luck!


.

 

[doublejay]

If you can find a job making $60k/year as a CSR or underwriter then you should take it.

Good luck!

.

From my research it seems that experienced underwriters can make that amount. Is that not the case?

I do realize that starting salary (what I'd be going for for now) is about half of that.

I was just saying that if after a couple of years I don't end up doing well with the transtion to sales I can at least have marketable experience as an underwriter/csr etc. maybe go into managment eventually etc.

Faulty thought process?

 

[Josh]

Faulty thought process?

Yes, for a few reasons.

The reason you make money in sales has very little to do with your background. Years of experience as an underwriter isn't going to make any difference in your commissions.

There also aren't a lot of management level jobs the way you're thinking about them. If you go into the corporate world and then head out to sales you'll likely be almost starting from scratch.

CSRs don't usually make much money.

 

[doublejay]

Yes, for a few reasons.

The reason you make money in sales has very little to do with your background. Years of experience as an underwriter isn't going to make any difference in your commissions.

There also aren't a lot of management level jobs the way you're thinking about them. If you go into the corporate world and then head out to sales you'll likely be almost starting from scratch.

CSRs don't usually make much money.

Hmmm.

Thanks for the heads up.

I thought a year or two on the inside would help me be able to answer questions of potential clients better. Also give me time to soak in the industry and choose best angle to attack from a sales perspective etc. Thought it would be good exposure....

But if you really think it would be a waste of time then I probably won't do it.

Do you have any suggestions for a way to achieve my two goals of 1) structure and 2) education in P&C field?

p.s. The structure is the more important part. I am really nervous about being so independant for the first year or two.

 

[Josh]

It wouldn't be a waste of time per se, but it's not going to get you much further ahead if your ultimate goal is to be in sales. A steady paycheck can be nice and you could definitely make a career out of it, but it's not going to matter to your commission check. You're not going to learn much that will directly help you with clients.

Dumb answer: If you want to learn about how to sell P&C and learn about it, go do it. Go work as a CSR/Producer for a P&C shop. Be prepared to get paid crap, but learn while you're there. If you can generate business you can make some serious coin, but that is the ticket to making money, not learning about the nuances of underwriting and such.

If you want to be in sales, start in sales.

If you want to be a CSR, be a CSR.

If you want to be an underwriter, find a job as an underwriter.

If you want to have limited earning potential in exchange for steady pay, go work as an underwriter, CSR, or some other job.

If you want to have serious upside potential in exchange for some downside risk, get into sales.

 

[russelltw]

You will learn to answer questions by being asked questions you don't know the answer to (just like if you were a CSR). Just tell them you are new and learning and want to give them accurate information and you will get back with them. Now go learn what you need to know and get back to them. Clients appreciate that. Also if you have a chance to buy out a partner, why not work under that partner. You will learn much more from the partner than you will reading a dec page or policy. With insurance, it's about know what your policy does, being honest with your clients (look out for them), and learning how to deal with people.

Don't waste your time being a CSR, jump in and learn to help people. No need to wait. These are two completely different mind sets. If you learn one, it may be hard to adjust to the other to succeed.

 

[OhioInsurance55]

Underwriting will always give you job security and a decent wage....the money in UW shows itself when you prove your worth and manage a P&L for a product, and eventually to the executive level.

I know entry level Underwriters who make 60-65k, and I myself have an offer for that when i graduate.

My dad has been on both sides and has made plenty of $ in both. If you want the best of both worlds maybe think about being in an MGA/MGU where you get the mix of UW and Production at the same time.