New Agency Starup

[KARLA LOPEZ]

Hi everyone,

I am trying to start a new Independent agency, but now sure where to begin, meaning do I need to find an office space first to get appointed by the companies or I can get appointed by them without having a commercial address yet, the name approval and E&O are that all I need? Help! Where do I solicit the software I need I have looked online for them but no luck finding them which ones do you recommend the best, at the best price, is there one that is already integrated with companies and at the same time keeps the insured's file information? Or do I need 2 separate systems? like FSC rater and something else ????

Thank you so much everyone I am a little lost here

 

[DHK]

You didn't specify, but I'm assuming that you want to start up a P&C agency?

Getting started and appointed with P&C agencies is much more difficult than getting started with life, annuities, and health insurance.

 

[KARLA LOPEZ]

Hi DHK
Yes it is going to be P&C for now then ill get into Life.

 

[Al3x Lee]

Hi DHK
Yes it is going to be P&C for now then ill get into Life.

Karla, what's your background and business plan?

 

[KARLA LOPEZ]

Hi Alex
Well I have experience in Captive agencies, and also a Lil in Independent agencies but mostly in captives, so I want to start an Independent agency, but no one is answering my question, I want to know what is first, getting an office or being appointed.

 

[Al3x Lee]

no one is answering my question, I want to know what is first, getting an office or being appointed.

That's because you asked an extremely broad question and we're trying to narrow down what exactly you're trying to do. If we don't know the specifics of what you're trying to do, it's hard to just give you an answer.

So is that a no to having a business plan?

Having an office depends on your plan, setup and what kind of appointments you're trying to get and what kind of business you're trying to write.

 

[Allen Trent]

Hi Alex
Well I have experience in Captive agencies, and also a Lil in Independent agencies but mostly in captives, so I want to start an Independent agency, but no one is answering my question, I want to know what is first, getting an office or being appointed.

chances of getting appointed are pretty slim unless you are part of a larger aggregator/network. The decent & good carriers dont usually appoint real easily unless you have a strong production history & something to show on a business/marketing plan. So you will be stuck with the 3rd or 4th tier high risk, etc carriers. The good carriers also dont easily appoint in a locality where they already have established relationship.

until you find carriers or a group to work under, no need for a location

 

[KARLA LOPEZ]

Thank You Allen that gives me a better idea of where to start.

 

[Life Hawk]

Hi Alex
Well I have experience in Captive agencies, and also a Lil in Independent agencies but mostly in captives, so I want to start an Independent agency, but no one is answering my question, I want to know what is first, getting an office or being appointed.

Not P&C here, but I would suggest the office first... and it starts in your head. That office space is at a premium and the most important office space in the industry. Your history says you have a good handle on that. But, I remember when I went captive (life/health) after being captive and FMOwned it was rather mentally daunting.

Work this sight. Run some searches on your questions and take time to read through the threads. Granted you have to scoop through the poop, but there is a wealth of information here.

Wish you all the best on flying on your own.

 

[marindependent]

I have said this a dozen times on this forum. But I would not spend money on office space in the begining if you have the abilty to work from home. Yes, many carriers do not like this, but most MGAs/ Clusters dont care. The money that you will save to advertise will more than compensate for this. If you are hiring employees - that is another consideration.

California is a REALLY rough market for P&C right now. Especially in the personal lines space, but also the commercial lines as well. Frankly I dont see many independent insurers taking on new clients these days, let alone new agents.

Your best bet is a Cluster, at least to start with. Inquire with your cluster on the software. [Sometimes they have discounts.] The software that you will need are multiple, including a rater, an ams system, and then all of the website and email platforms.
But I am not sure of the effectiveness of using a rater right now.

Frankly I would talk to some other independent agents in California before you move forward too quickly. Dont just take my word for it.