New - Independent Agency

[AmeriCapital]

I'm looking for advice on the best route for carrier access as the market is a bit tough right now for direct appointments with Safeco, Travelers, Progressive, etc. I've been licensed for about 12 years selling part time for a small independent. I have a decent book established and I've always had direct access to the carrier websites for quoting and issuing so I would want my name on the policies. I'm in the planning phase of starting my own IA in Washington state and wondering which aggregator, cluster or MGA to consider. Any feedback or suggestions would be great.

 

[marindependent]

Any feedback or suggestions would be great.

Just wait...if you can... until all of this settles out.

My guess is many agencies will be forced out of business in the next few years in some states. I do not know too much about Washington, but I would speak with a lots of Washington agents before making the jump.

 

[Markthebroker]

I'm looking for advice on the best route for carrier access as the market is a bit tough right now

You don't say.

 

[AmeriCapital]

Thanks Mark the Broker for your thoughtful insight and advice.

 

[Markthebroker]

Thanks Mark the Broker for your thoughtful insight and advice.

Ok, I'll expand. This is probably the worst insurance market anyone alive has ever seen. Few carriers are making new appointments, but many are non renewing and pulling out of the market.

Each state is different, so do your homework, but my statement is accurate as to the broad U.S. market. Specifically Ca, Ny, and Fl are seeing the worst of it.

With no exaggeration, this is the absolute worst time to be going off on your own. If at all possible wait until things settle down. It looks like we've hit bottom - but who knows when we'll pull out of this tough market.

Basically - what @marindependent said.

 

[Al3x Lee]

Each state is different, so do your homework, but my statement is accurate as to the broad U.S. market. Specifically Ca, Ny, and Fl are seeing the worst of it.
who knows when we'll pull out of this tough market.

I write in Washington. It's better than California, but still not good right now. Some people are saying this could last the rest of this decade..

 

[Markthebroker]

Some people are saying this could last the rest of this decade..

Doubtful. Possible but doubtful.

I hope it turns around soon. Frankly, it financially benefits me dramatically if the market stays bad as premiums are going up, referrals due to non renewals are rolling in like crazy, and retention is the highest it's ever been, but this isn't how I want to grow my book.

Don't get me wrong - I'll take the money, and have. But I'd rather the market was good for everyone.

 

[marindependent]

Some people are saying this could last the rest of this decade..

 

[AmeriCapital]

It sounds like joining a network in this market is my best option for access to both personal and commercial lines.

 

[AZDave]

This is the way.
Not even Progressive is giving out appointments these days.

Lots of headaches and different pains that go along with being an agency owner. A solid producer agreement with decent commisions/renewals and opportunity for ownership may be a better option for many these days.