Looking for Thoughts

[TechNiche]

I have been reading your forum for a while, and it seems like a great resource for Producers. A bit about me... I'm the Head of Technology for a major Carrier (top 5 in the world), thinking about venturing into the world of starting an agency. I make a pretty good income ($200kish), but I've never wanted to spend my entire life in Corporate America and the Politics is wearing on me. I've been in the Insurance Industry for about 10 years, and have done a lot of work with Property and Casualty Insurance (particularly in Underwriting and Actuarial). I recently finished my CPCU, and am a licensed Producer in with licenses in P&C, Life, Health, and Surplus in my state.

Over the past 5 years, I had the fortune in my career of writing software that helps the Company evaluate Cyber Risk. I've reviewed hundreds of Cyber Policies, and came away with the thought that upwards of 90% of them have inappropriate/inadequate coverage. To be able to sell this stuff correctly.. I think a technical background would be very helpful. I would like to start a Niche Insurance Agency focused on selling Cyber Insurance and also providing Cyber Security Services to Companies. As I said above, I make a pretty good income. Any thoughts first of all on the Cyber Insurance Market.. and any ideas of how I enter the field without quitting my day job. I should mention that at my level I have plenty of availability to work on my own projects.

I looked at some aggregators that will allow me to sell and own my book and not force me to meet any production goals. Is this the way to go ? Any other thoughts on how I can get started here. What is an imperative for me is that I want to own my own book and not be subject to Production Quotas. Is there anything else I should be worried about ?

Thank!
M

 

[Krball]

Niche is the way to go. We run a small agency in a small state targeting a couple very small niches. We do well. So many purport to be great at everything and helping everyone that they end up not doing much and not doing a great job at any one thing.

Control. Who really owns the client relationship? Who really controls the commission process? Tons of pros and cons to direct vs through middle man.

Work with every state? That's a pretty heavy lift in terms of time and money.

Stepping out of comfort and certain salary is often hard to give up. Totally fun and worth it in my opinion but I get why most never make the leap.

Good luck with the T chart on this one.

 

[walthamny]

You will make pretty good money selling your expertise and being a consultant. You dont need much capital to do this. If your company allows it, start your business part time now. Now starting an agency and marketing in 50 states selling any type of insurance is much different. While most brokers dont have the deep product knowledge you do, they have other skills that can compensate for that. You will still have a learning curve. And you would need some capital to do this.

 

[PhilL]

You are fortunate to have received great advice from both of these Gentlemen.
Since I "retired" I do consulting work myself, although not of the technical nature that you describe as your area of expertise.
Walthammy's suggestion to you about becoming a consultant in your field is an excellent one, especially under your described circumstances.
You can contact me through my website if you want some other relative thoughts.