I want to sell in CA, Join a Cluster or Agency?

[1reason]

I have a commercial agency in Wisconsin and licensed in several states. Since about 98% of my production is over the phone, including TX and FL, adding CA itself isn't a big deal.

I want markets to write rental property in CA because I recently passed the CA bar and have a law school connection/friend (property manager in LA) willing to feed me leads for expiring policies. My problem is that I know I'll need competitive carriers as most of the business will be won initially through price.

While I'm unsure if there's enough just from these leads to warrant direct contracts, I'm also very busy and adding the work/stress/time required to gain direct appointments doesn't seem to be a good use of my time compared to giving up 10%-20% to an agency/cluster, especially when the right situation/relationship may more than offset the split through time savings and greater business.

Thoughts and ideas?

 

[marindependent]

California is a crazy property market right now. Many of the expiring policies that you are likely to get will be non renewals. With the exception of Florida, almost any other state will be easier to write in. Even in those situations where you might have a better product to offer, [because of inspections, etc ] it often does NOT make sense to propose the change.

Frankly people that live out of state, or out of wildfire country, really have no idea how much of the state of California is now considered high risk wildfire.

 

[1reason]

Many of the expiring policies that you are likely to get will be non renewals. Even in those situations where you might have a better product to offer, [because of inspections, etc ] it often does NOT make sense to propose the change.

Thanks for your reply and you bring up some points I should clarify.

Most (from this source and another much smaller one) are in LA metro area.
The leads I'm receiving are in the form of renewal quotes for upcoming expirations.

I'm also looking at spending maybe one week per month in the Oceanside area (because of the relatively low cost housing available to me) for court appearances and/or client meetings. This is why I thought maybe joining an agency may be advantageous over a cluster (relationship building)

 

[shawnmwalker]

Tough market in CA right now. But is you are used to FL.....Then.....Anything is easy.

 

[1reason]

Tough market in CA right now. But is you are used to FL.....Then.....Anything is easy.

Right : 0 )

 

[Markthebroker]

California is a crazy property market right now. Many of the expiring policies that you are likely to get will be non renewals. With the exception of Florida, almost any other state will be easier to write in. Even in those situations where you might have a better product to offer, [because of inspections, etc ] it often does NOT make sense to propose the change.

Frankly people that live out of state, or out of wildfire country, really have no idea how much of the state of California is now considered high risk wildfire.

Marindependent brings up a good point. This is a tough time to be getting into the California market. I'm a commercial guy here in Ca, but from what I've seen in my 10 years, this is probably the worst time to be getting into the insurance game around here. For those of us established, it's not that bad. But as far as a newby - now is a bad time.

 

[1reason]

Marindependent brings up a good point. This is a tough time to be getting into the California market. I'm a commercial guy here in Ca, but from what I've seen in my 10 years, this is probably the worst time to be getting into the insurance game around here. For those of us established, it's not that bad. But as far as a newby - now is a bad time.

Thanks for your insight on the market, albeit the ability to find prospects isn't a concern for me as I have that part well covered. It's having the markets to place risks as well as the networking ability to drive legal services that I want to accomplish.

Which, is why I'm increasingly thinking joining an agency where I can focus on production, and not attempting to "do everything" required as an agency (ie gaining appointments etc...) is likely the way to go.

 

[shawnmwalker]

Premier Group Insurance, so much more than carrier access. - YouTube

 

[marindependent]

It's having the markets to place risks .....
where I can focus on production

Yep, these two statements don't add up in California right now, in my opnion. There is no one market for these risks right now.

Best of Luck.

 

[Markthebroker]

Thanks for your insight on the market, albeit the ability to find prospects isn't a concern for me as I have that part well covered. It's having the markets to place risks

That's what I was referring to.