P&C Independent Agency Opportunties

[superdoof]

Hey folks,
This is my first post, so excuse my question if it is has been answered. I am an agent with about 4 years experience. Being Naive, I started out captive with a non standard company for about a year and then went to work for an Independent agent who sold hartford,metlife, etc. I thought we had a pretty good arrangement until out of the blue he stopped taking my calls saying he was Ill and had to leave the business. Turns out he was stealing from me. Hindsight is 20/20, and I know better now. Good news is that i kept all my client info-and i did all the customer servicing. After calling each one, almost 90% are still in force and said they would roll immediately where ever I go. So here's my question: Does any one know of any opportunity that will give me a fair split, but allow me to be vested in a reasonable amount of time? It would help if they have access to similar markets, but will allow me to write with non- standards as well. I definitely don't want to go through this stuff again.
I'm scratching my head, and I have to make a move soon...

Thanks for the advice in advance

 

[TwiLight]

Hey folks,
This is my first post, so excuse my question if it is has been answered. I am an agent with about 4 years experience. Being Naive, I started out captive with a non standard company for about a year and then went to work for an Independent agent who sold hartford,metlife, etc. I thought we had a pretty good arrangement until out of the blue he stopped taking my calls saying he was Ill and had to leave the business. Turns out he was stealing from me. Hindsight is 20/20, and I know better now. Good news is that i kept all my client info-and i did all the customer servicing. After calling each one, almost 90% are still in force and said they would roll immediately where ever I go. So here's my question: Does any one know of any opportunity that will give me a fair split, but allow me to be vested in a reasonable amount of time? It would help if they have access to similar markets, but will allow me to write with non- standards as well. I definitely don't want to go through this stuff again.
I'm scratching my head, and I have to make a move soon...

Thanks for the advice in advance

First, establish an office, Get your E&O and then join your State Big I. The Big I will have a good E&O carrier for P&C as you will need it for appointments. Also, be sure you do not have a non-compete agreement with the other agent, if you do, please get advice of an attorney before proceeding.

The Big I has a cluster agreement with AgentSecure: Your Online Wholesale Solution for the same carriers you mention, plus added commercial lines. 2 comp plans and not much of a startup cost and will help in servicing for the 65/35 split. the other comp plan gives you 100% for a monthly fee and production minimum.

You own the business and they will help in getting your own contracts. Next, contact your non-standard companies direct. they usually easy to get an appointment as a new agency. Also, get in touch with Progressive as a good standard carrier to build you book.

As you build your book, in 3-5 years you would be more attractive (1 mill in Commercial and 1.5-2 mill of personal lines is a good goal to strive for) for additional carriers to appoint you directly and TADAAA.... you are now an established independent P&C agent.

 

[NCAgent]

I definitely agree that it is time to get out there on your own, and a cluster is the way to go. Agentsecure may or may not be that cluster for you, it depends on how comfortable that you feel about them.

My recommendation is to call the companies that you want direct accounts with first and see what they say. For example, I wanted Safeco as one of my primaries here in NC. The rep said that he wouldn't contract me directly BUT he told me of several clusters who could help, including a local one I hadn't heard of before. The local one had a better setup for what I wanted compared to the other clusters. Hell, the worst case scenario from calling is you are right where you started, nothing worse. Maybe you get 1-2 direct appointments, too. A couple of non-standards like Foremost, Progressive, etc. could be a direct contract for you with a book to start off with, and then you do a cluster for a few others.

I do agree with getting your own E&O. My agency uses Utica, which is awesome in our state. Call up some local P&C agencies that do commercial and see if they will write it for you. One with more underwriting will probably be cheaper for you than going online and finding one with a simple questionnaire. My agency got a full lines E&O (minus securities and variable products) for like 700/year, compared to some people who do a few thousand just for P&C.

Look for companies to partner with in the beginning for leads as well. Mortgage companies, real estate brokers, lawyers, etc. where some quality people might need insurance. Having a setup like that gives a steady supply of people and having something in writing might also help you get a direct appointment or two for a solid business plan.

Let me know if you have any questions. If you were closer to NC I might have been able to offer more direct assistance but from TX not to much.

Do you have a life and health license? Cross-selling some life to your current clients will make your slow start-up more palatable by getting some actual money in your pocket, too.

 

[Bertolinoins]

What state are you in?

 

[superdoof]

I'm in TX guys, thanks for the advice- it makes sense. I contacted a couple of the carriers directly, no feedback yet. Except Hartford, they knew me as a sub producer, but going indy required more premium than I've written. Not gonna give up though. I'll make sure to follow the advice that I've received so far. Does anyone know of anyone that will let me keep ownership of my book or vest me completely after a few years? Every thing I've heard so far was that if I joined up with someone, that I could buy out, but it would cost me 1.5 times a years commission or something like that. I know I have to pay to play, but what's fair. Or am I just barking up the wrong tree all together? Thanks

 

[superdoof]

Re: P&C Independent Agency Opportunities-Dazed and confused!

Thanks for the feedback, I'll follow the advice as best I can. To answer a couple of questions. I am in TX, and yes, I am in the process of studying to get my Life/Health as well. Twilight, you mentioned Agent secure. Is there a big difference between that option and writing under a group that is has multiple carriers but only wants you to write with their carriers?

I have a couple of options that have been presented to me:
Both offer 70/30, a rater and e/o for about 275 and carriers such as HArtford, Met life CNA etc..

One doesn't want me charging any agency fees, and will vest me in 5 yrs. They also seem to want me to ignore non-standard. But They also seem to offer a ton of support, like marketing, coaching, back office and an agency management system

The other doesn't care about my agency fees, and will allow me to walk at any point provided I pay the equivalent of 12 mo premium commissions. They also offer an agency management system at an additional 125 a month, plus the split jumps up 5% after I hit 500k and again at 1 million premium.

Am i getting to hung up on the whole book ownership thing- or am i just totally misunderstanding the concept? I'm confused- what the heck are vesting and book ownership? I really want to make a move soon- I just don't want to screw myself- I'd hate to roll my book and be stuck in a bad situation.

Thanks so much for the feedback so far.

 

[NCAgent]

Being new you can't get high commissions, book ownership, and direct appointments with whomever you want. You usually get 2 of the 3.

For you right now, get the place that will be easiest to leave. I think agentsecure is pretty easy to get support with and then leave, but you have no appointments. However, they will allow you to get appointments and pay more to use those appointments with their rater. I think they might be the best for you at this time.

You can also find an agency that specializes in some kind of niche (like commercial) and offer to build their book and pursue yours on the side, as long as it doesn't directly compete. They get a commission split like a 50/50 but you own the book and do prospecting. After 1-2 years in this setup maybe go out on your own if you don't like the partnership. Get your name out there, get the reps to know you, build up a book and then go for your own appointments.