Long Term Outlook of the Commercial P&C Biz

[JoefromNY]

I thinking of starting out in P&C sales geared mostly to smaller professional services firms (Attorneys, Accountants, etc) and small businesses. What is the long term outlook for this corner of P&C sales? How threatened is the commercial end of the business by technology? Are carriers anticipated to reduce the role of the broker any time soon? Commission levels stable long term? I'd like to get a sense of what people in the field think the field will look like 10+ years out. Thanks.

 

[Arnage150]

I thinking of starting out in P&C sales geared mostly to smaller professional services firms (Attorneys, Accountants, etc) and small businesses. What is the long term outlook for this corner of P&C sales? How threatened is the commercial end of the business by technology? Are carriers anticipated to reduce the role of the broker any time soon? Commission levels stable long term? I'd like to get a sense of what people in the field think the field will look like 10+ years out. Thanks.

There is not a lot of money in P&C for professional services. The blue collar businesses result in more p&c premium. Although there is more money in benefits side for white collar businesses.
Technology will not affect commercial like it did in personal lines. It is too difficult to quantify the data like in personal lines. ie, there are a million different types of businesses.
Long term outlook for P&C is good however increased competition, mostly from the diminishing benefits/health side and personal lines P&C is expected.
No, I don't see carriers diminishing the role of the agent. They require someone with local knowledge that is in the field.
I don't see any reason commissions should change drastically like they have in personal lines.

 

[JoefromNY]

That was a helpful analysis, thank you.

 

[Arnage150]

That was a helpful analysis, thank you.

Where are you from in NY?

 

[JoefromNY]

The city. Do you think there is no money in professional liability either? Has anything on the benefits side dried up aside from health? Thanks.

 

[Arnage150]

The city. Do you think there is no money in professional liability either? Has anything on the benefits side dried up aside from health? Thanks.

There is money in professional liability but most of the big industries have association programs that monopolize the industry. ie, all doctors buy their malpractice through an association program you and I don't have access to. Lawyers are the same, Chiropractors, dentists, accountants...etc.
I write a few here or there but its usually because they got kicked out of their program due to claims.
What professional liability industry are you trying to focus on? There may be an agent that holds the pen for those associations you could work for.

Life is still selling, so are financials products. Health is dying quickly.

 

[JoefromNY]

Lawyers. I have a network in place. But based on your advice it sounds like I would be better off selling them group benefits and 401ks than malpractice. Is that right?

 

[MrGolf]

Commercial is the way of the future and the only way to go, in my area at least. Where I'm located there is no competing against Farm Bureau on insuring homes in PC 09 and insuring every 16 year old driver. It's silly and you lose money on it. Our personal lines book which is about 35% of our overall book is more service heavy than middle market commercial accounts. I've about entirely abandoned personal lines and am fine with it other than the preferred accounts and the ones who have been with us for decades.

Although to echo what someone else said you won't generate much premium writing white collar stuff.

 

[JoefromNY]

Mr Golf,
What is your view on the future outlook for non health employee benefit sales to white collars? Thanks.

 

[MrGolf]

Mr Golf,
What is your view on the future outlook for non health employee benefit sales to white collars? Thanks.

I don't do any employee benefits so I wouldn't be the one to ask. Probably someone on here who can give you their thoughts.