New to PNC but Have Big Book of Business Help

[greenie681]

I have life license, and in the process of getting P&C as well, and I want to go independent just not sure how to go about it. My partner is a regional manager with a ins company that wants to add P&C to their repertoire. His agency is non captive and we want to market the P&C side but again as independents and represent the best out there. How do I get started? How do I get some of these companies to allow me to sell their products and not take a huge chunk of the commission. Whats the normal commission levels? Can anyone educate me here?

 

[Scottyj]

15% is average commission from a direct appointment each policy period so in other words each time you renew. From what I have heard compared to LIFE you will probably see less compared to what you are used to however you will see more than what you are used to after the first year. however I have no experiance with anything other than P&C... maybe these companies will appoint you based on your success with other lines... I do not know but I would assume they will want pretty heafty commitments for the first year and that may force you into an MGA until you can build the P&C side.

 

[greenie681]

So then is it viable that I would go to independent P&C companies and ask them if I could be independent of them and sell or have access to sell their products? Of couse they would want some sort of percentage right? Other then using a MGA, I have the book of business and all the leads and agents out in the field that will continue to market it so I don't want to have to give away all my profit, so basically what is the best approach for someone in my situation?

-Working with a company that offers everything but P&C. (I want to now add P&C to the list of services)
-Have built up a book of business and have offices in over 7 different states.
-Agents that will market and sell with me

Any feedback would be appreciated thanks, or if anyone has done something like this already I would love to hear their story.

 

[Scottyj]

I would say you may want to start approaching some non-standard P&C markets, they will usually appoint you no problem, however for access to larger carriers like, Safeco, Travelers, Hartford, Allied, and even some larger regional carriers you will be required to commit a hefty amount, so you may want to approach a local cluster or MGA so you can have access to those carriers.

As I mentioned before 15% of the total policy premium will be your cut as the selling agent, from a directly appointed company upon policy inception and renewal... I would say start with one office through an MGA and build your book up to about 500,000 to 2 million (each agent) and then start approaching companies. Most companies are going to want anywhere from a 100,000 dollar premium commitment to 1 million the first year, and you are going to need to show them that you are capable of that in the P&C market. If you are already appointed with some companies that you sell Life for maybe see if they have a P&C market as well, they may just amend your contract and appoint you for personal and commercial lines as well...