P&C Agency Ownership -Great Life

[insurance1822]

insurance1822 you are the man. In a world dominated by older agency owners the opportunity for a younger producer/principle is limitless.

Once their book of business gets to a certain point they get fat and lazy. More worried about playing gold then writing new business

I'd be lying if I said my plan wasn't to sit back on my renewals & enjoy life as a new father. I want to be 35 sitting on a $6,000,000 book...serviced by the carriers and write enough to hold even. The truth is the mindset it takes to get there doesn't just "go away" but that's my plan.

For us younger generation agency owner's (more so in about 7-10 years from now) there's going to be a MASSIVE transition of older agency owners selling & those who are capitalized, along w/ the carrier representation & track record to justify it will gobble up old bum agency's and get fat & happy way faster then we normally should.

Then...we'll ride it out until we're 55 at which point (I believe) the local personal lines agent will be phased out just like travel agents as a result of technology.

Only those diversified in commercial will stand. Hopefully by then my retirement accounts are large enough that it doesn't matter.

 

[CaptiveGuy]

I'd be lying if I said my plan wasn't to sit back on my renewals & enjoy life as a new father. I want to be 35 sitting on a $6,000,000 book...serviced by the carriers and write enough to hold even. The truth is the mindset it takes to get there doesn't just "go away" but that's my plan. For us younger generation agency owner's (more so in about 7-10 years from now) there's going to be a MASSIVE transition of older agency owners selling & those who are capitalized, along w/ the carrier representation & track record to justify it will gobble up old bum agency's and get fat & happy way faster then we normally should. Then...we'll ride it out until we're 55 at which point (I believe) the local personal lines agent will be phased out just like travel agents as a result of technology. Only those diversified in commercial will stand. Hopefully by then my retirement accounts are large enough that it doesn't matter.

You are exactly where I want to be, my next step is to acquire a $500k-$1M agency and keep grinding. My goal is to get to $3m and have 2 csrs run the day to day operation.

I'm 3 years in now at year 10 I will be 37 and sitting pretty. Eventually want to sell my book and work under the acquiring agency as a manager or producer until I have enough saved to retire.

 

[NCSU INS GUY]

You're in North Carolina, right? I will buy you in 10 years , give me a call. Haha

 

[nyc2phi]

I'd be lying if I said my plan wasn't to sit back on my renewals & enjoy life as a new father. I want to be 35 sitting on a $6,000,000 book...serviced by the carriers and write enough to hold even. The truth is the mindset it takes to get there doesn't just "go away" but that's my plan. For us younger generation agency owner's (more so in about 7-10 years from now) there's going to be a MASSIVE transition of older agency owners selling & those who are capitalized, along w/ the carrier representation & track record to justify it will gobble up old bum agency's and get fat & happy way faster then we normally should. Then...we'll ride it out until we're 55 at which point (I believe) the local personal lines agent will be phased out just like travel agents as a result of technology. Only those diversified in commercial will stand. Hopefully by then my retirement accounts are large enough that it doesn't matter.

I've started to do a bit more focusing on commercial lately because of that reason. That and the higher premium/payout. I still believe there will be a place for personal lines agents in 10 years because word or mouth and referrals will still be present but I guess there really is no way to be sure.

10 years from now I will be 36 and hopefully In the same position as you. Sitting on a big fat book of business, buying up the old timers book, and giving you a beating on the golf course

 

[Arnage150]

Being 33 and sitting (more like balancing) on a $8m book let me give you my take on this:
A) Personal lines will never go away. It may be a shrinking industry for the independent agent but it will always be there. The geico model of volume only works with minimum limits, adverse, higher premium business. I feel the preferred business will always be written better by a local independent agent pushing a regional company product. That being said, commercial lines is more fun to sell. I've been in this business long enough to see that a stable regional company is better then a national company that comes and goes every time they get a new CEO. Replacing a whole book of business is never fun.
B) The world is not enough. Maybe it's just me but I always want to grow. I never picture myself sitting on a book. The larger you get the more power you have and the more you look into writing monster accounts or buying other agencies.
C) Buying out agencies is not easy. I know of several monster local agencies that pay all cash for agencies and pay top dollar. It's an art form to be mastered just like selling insurance. Being able to close a sale on a HO policy is a lot different then closing a sale on an agency. Like 1822 said, its all about the #'s. But when you have zero experience in it and there is no book to read that tells you how, mistakes can be made.

 

[rgleyzer]

I am a bit less than 8 months in to Independent Agency Ownership, and a book grown organically of about $600k. First month just spent trying to figure things out. Now I have an AMS, way to generate leads, a few direct appointments, etc.

I don't think this is stellar, but solid start to year one, an I suppose $600k is better than $0... However, this has already caught some attention from a few captive insurers and they'd like to speak to me. I'm not too familiar with how they would operate or what sort of limitations I would have. I have a few calls scheduled next week (I'm doing this more as a courtesy to the individuals, not because I sought this out). Any pointers on good probing questions I should be asking???

The book is P&C 100% commercial lines.

I already heard the SIAA shpiel and thought it was extremely foolish, is it similar except for simply being able to work with 1 carrier???

 

[Sam Adams]

I am a captive and just finally got my wife licensed. My plan is to put an IA in her name and run up my marketing in the captive and quote like hell. Once I build up my IA book I will either sell the captive or just run both. Tricky part is getting appointments for the IA while I am still a captive.

 

[STC1991]

I am a bit less than 8 months in to Independent Agency Ownership, and a book grown organically of about $600k. First month just spent trying to figure things out. Now I have an AMS, way to generate leads, a few direct appointments, etc.

I don't think this is stellar, but solid start to year one, an I suppose $600k is better than $0... However, this has already caught some attention from a few captive insurers and they'd like to speak to me. I'm not too familiar with how they would operate or what sort of limitations I would have. I have a few calls scheduled next week (I'm doing this more as a courtesy to the individuals, not because I sought this out). Any pointers on good probing questions I should be asking???

The book is P&C 100% commercial lines.

I already heard the SIAA shpiel and thought it was extremely foolish, is it similar except for simply being able to work with 1 carrier???

Nice book for 8 months in! I am in the process of opening my IA - hoping to go live in about a month or so. When you first started, how did you pursue gettings leads. how much of that 600k business would you attribute to cold calling? Appreciate the feedback.

 

[indienoise]

Nice book for 8 months in! I am in the process of opening my IA - hoping to go live in about a month or so. When you first started, how did you pursue gettings leads. how much of that 600k business would you attribute to cold calling? Appreciate the feedback.

While there are certainly IA's who realize success chasing internet leads, and you could be another, it's the hard way of doing things. Why pound the phones when a little marketing and networking can make your phones ring for you. Its your business though, do it your way.

 

[shawnmwalker]

Update on Ins 1577 since his OP..... He now rubs vicks vapor rub on his eye balls to feel alive. He is not mentally healthy. He is really struggling to "wake up" and "get off the meds". He is a shell of a man since the OP.

In all reality, he is killing it even more than before and taking names.