New Agent...need Advice...P&C Vs Health

[1manshow]

Easier to get contracts with health carriers, very hard within the P&C market to get contracts without business on the books, also, find health leads are more abundant.

That statement speaks volumes. Which industry is traditionally more volatile ? "Health Insurance"... How much protection do you get from competition ? Health- very little, 2 weeks study time, take a L&H exam and you're in... P&C - who do you know who's passed the exam on the first or second try ? Then you have to jump through hoops to find a carrier to "allow" you to sell their products. As you can tell, I'm primarily a P&C producer, I never worry about my main carriers appointing new agents in my territory because I give them tons of business. Try slipping that one by a health insurance carrier

Oh yeah, when I submit a risk to the P&C carrier for quotes it's on a "first in" basis...meaning they will only quote it for one agent. After 15 years writing for Highmark BS I can tell you that idea would be laughed out of the room. I'll stick with P & C and have buyers standing in line at 3X an annual commission to buy my book when I'm done

 

[Seattleins88]

I like the thought of being able to sell your book when you are ready to hang it up and that is one of the main reasons to get into insurance. P&C looks like the direction I will go but if I start out as a captive agent my time spent with them is just for education. Any suggestions on growing my own P&C book as an independent or working for one? Or is this just not possible?

 

[1manshow]

Just a thought

Not knowing your business background or business plan....How about doing some legwork looking for a P&C company who will support a "scratch agent" If you're in a state where Erie Insurance operates, they will still appoint scratch agents.
If that won't fly, I'd look for an agency with no current perpetuation plan and see if working my way into a partnership through production was an option...of course with the right of first refusal when the agency came up for sale.

Otherwise you're going to be stuck with a non compete and working your way up slowly as a subagent, etc.

Either way, best of luck to you.

 

[russelltw]

i do both, pc has more day to day work than health does. Health pays more upfront, pc pays more year over year.

My average health sale is $2,000 annual prem/person/year. My commission is 22% first year, 4% afterwards

my average pc (home and auto) is $1800/year. At 15% first year and 7% the 2nd year.

 

[Crabcake Johnny]

I'd rather roll around in a room full of razor blades than sell auto insurance.

 

[souldeux]

I'd rather roll around in a room full of razor blades than sell auto insurance.

Amen to that. A friend of mine just closed the doors on his P&C agency and he told me recently that he feels like he's free for the first time in years.

 

[1manshow]

Amen to that. A friend of mine just closed the doors on his P&C agency and he told me recently that he feels like he's free for the first time in years.

Let me guess, your friend was captive, had no "written" marketing plan and probably was "hands on" in his agency? That's what I see the agents who are "worn out" doing. When agency owners start working "on" their business rather than "in" the business, I think it will become more fun and profitable.

FYI, guarding my time was "my" important first step in getting a marketing plan in place that has generated growth in my PIF every year for the last five years. 2009- +9%PIF, 2008 +11%PIF
Those are numbers I can live with especially without answering a phone, writing an auto/home app, taking a claim,making a change.......

PS. I'm not judging anyone's career choice(rolling in razor blades?) I simply believe that P&C will generate more long term, stable revenue for an agency owner. Does a 20yr health agent get a contingency check for six figures each year ? In addition to regular commissions on new and renewal biz? Just wondering...


PPS. Jason, if you can't market/sell car insuranceplease ask someone to tape a mirror to your monitor...the problem won't be solved by health insurance or a bunch of "stay at home moms" on a forum

 

[JasonH]

PPS. Jason, if you can't market/sell car insuranceplease ask someone to tape a mirror to your monitor...the problem won't be solved by health insurance or a bunch of "stay at home moms" on a forum

Dan,
I'm not sure where you get off saying I can't sell insurance? I would be glad to provide proof of my numbers and if they are worse than yours I would be glad to take your advice on taping a mirror to my monitor. Oh, thats right I need to ask someone to tape a mirror to my monitor? You are calling me incompetent so I must have deeply offended you and I apologize. Ending your prick statement with a smilely face doesn't take away the fact that you are being a prick.

The point I was trying to make is in the post above the razor blade comment. Unless you you have a huge bank roll I believe that if you want to start off on your own that your best chance for success would be life&health. If you want to sell P&C you are probably better off starting out under someone.

I didn't know that Nick P., Rob L., Frank, Healthagent, Jody, Mark, Wino and a few others that I believe give useful info are all stay out home moms giving out B.S. advice? Thanks for the heads up buddy!

 

[1manshow]

Jason,

You're putting words in my mouth. I never said you can't sell... you seem awful sensitive about proving that you can(sorry if I was the cause of that)...hopefully that "drive" will benefit you in the health insurance market or whatever you sell. I was suggesting that success won't be affected by the many naysayers or "jumping" on advice you got from this forum. I'm a believer that "you" are the only one who can "make or break" your success in the business.

I should have known better than to let the "rolling in razor blades" comments piss me off Especially considering the fact that I have never had a health agent take a P & C account away from me. In fact, it has been the exact opposite..if we want the health biz. from P & C accts. most times its just a matter of asking for it. I'll leave that one alone.

BS advice from the "stay at home moms"? Not sure I ever said that...(probably meant it though) I won't deny that I see a lot of BS posts on here from folks who seem to spend more time giving out advice than they do selling insurancethus the "stay at home moms" comment

I certainly will agree that starting out scratch in P & C may be the toughest. I guess that's why I like to see others who take the risk and have the faith in themselves to make it work. Ones who choose the more difficult path and find a way to make it work. I have never actually known a health agent who transitioned to P & C successfully...
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One more thought, some of you sitting on the fence might consider take a look at Dan Kennedy's book "The Ultimate Marketing Plan" There are a few examples of folks getting started in business going up against competition who had the market "locked up" much the same as your situations cracking into this business. One example in particular that seemed to "parallel" insurance was of a chiropractor who spent two months going door to door in his new community prior to opening his practice. He simply introduced himself and handed out some free reports, suggestions on preventing back injuries, etc. He visited over 2000 homes in a small town that already had 10 chiropractors and from the day he opened his office he was busy, respected and had earned credibility...in a short period he became the busiest office in town. Yada, yada....I wish I had tried that simple approach 20 years ago guess I'm saying that sometimes I forget how tough it is to get started and have success in this business

 

[Crabcake Johnny]

I think I need to restate my position - "I" would never sell auto. It was not my intent to demean auto insurance.

I need passion in my life and I have passion for selling health. I have a bit less passion for selling life but it's there.

I have zero passion for selling auto. To me it would be just another sales job. I'm sure P&C agents feel the same way about life/health.