Obstacles for a New Independent to Get Contracts

[sam816]

for those newly licensed wanting to start their own agencies what are the major hurdles in getting contracts to represent insurers?

1. is it getting E & O without having a few years of sales experience? or

2. no one will give you a contract if you don't have a few years in the insurance?

also, are there any lines of products that are relatively easier to get contracts for?

TIA.

 

[paulcharles]

In the business of Finance & Insurance, experience as well as good contacts are really must. It's not that no one will give you contracts if you don't have experience but try to make some good relations here in the market.

 

[FLInsa]

In the business of Finance & Insurance, experience as well as good contacts are really must. It's not that no one will give you contracts if you don't have experience but try to make some good relations here in the market.

E&O is easy.

Getting the contracts for a new agency is impossible, unless of course, the President of the carrier is your father-in-law.

 

[Tampa Bay Rep]

for those newly licensed wanting to start their own agencies what are the major hurdles in getting contracts to represent insurers?

1. is it getting E & O without having a few years of sales experience? or

2. no one will give you a contract if you don't have a few years in the insurance?

also, are there any lines of products that are relatively easier to get contracts for?

TIA.

For a new start up agency you might want to look at getting set up as a GA with an MGA if you are setting up an agency to recruit other agents. You would be able to get contracted with any of the carriers they are set up with. Getting E&O would be no problem. Ask the MGA who they recommend you get set up with.

 

[souldeux]

It also depends on your product line - P&C contracts are very different from health and life contracts, for example.

On the health/life side, both E&O and contracts are generally fairly easy to come by. I say generally because, well, if you're currently bankrupt or something then it's a different story.