P&C...is being independent possible?

[Advisor06]

I recently got my P&C license and hooked up with an agency that seems like its straight out of boiler room...they are independent but I can see the writing on the wall. The owner says he pays above anyone else and there would be no way for me to be independent other than working directly for an agency. He does not offer a salary or anything other than direct commission. There is no personal lines focus but rather a direct focus on commercial lines.

Any suggestions are appreciated.

 

[adjusterjack]

Suggestion:

If you don't like the deal, don't take it.

Keep looking for something more to your liking.

 

[thomasm]

Going indy without any experience is a fallacy if you can even find a carrier or cluster that will work with you! Commerical is where the money is. I would take the gig! What do you got to lose?

 

[adjusterjack]

I would take the gig! What do you got to lose?

I hope he's got a big bank account or a wife who makes good money because it could be months before the commissions start coming in.

 

[VolAgent]

Going indy without any experience is a fallacy if you can even find a carrier or cluster that will work with you! Commerical is where the money is. I would take the gig! What do you got to lose?

Yeah, it is where the money is, once you close it. Commercial tends to move on renewal. I'm sure someone could break down the numbers, but your new prospect is probably 4-6 months out from renewal. Plus, you have to actually be able to win the account, and that is more than just having the best premium.

As a new agent, he is likely to end up with the perennial shoppers who will use his quote to beat up their current agent. He won't know better, so it will be up to the agency owner or management to help him in avoiding these people.

 

[SpinsAgency]

I started Independent as Health & Life only in 2005. Then I brought in P&C. I am still independent to this day. But I too have other agents that place business through me and I to offer Commission Only as they are not my employees.

 

[Advisor06]

How do you get appointed as an independent agent if you are not affiliated with an agency?

 

[SpinsAgency]

How do you get appointed as an independent agent if you are not affiliated with an agency?

When I started I had to beg and borrow. Most companies will not take you until you have $1M+ in business.

I also used General Agents.

 

[thomasm]

How do you get appointed as an independent agent if you are not affiliated with an agency?

Aggregators, alliances, clusters, or MGA's is the typical route. You can start here:

Insurance Agency Clusters & Alliances | AgencyEquity.com

 

[indienoise]

Impossible? No. But very, very, very difficult.
I had experience when I opened my agency but getting appointments is still difficult even with almost 3 years in business on my own, and a 1mm book.
You can place business through a wholesaler or general agency but that still introduces another set of challenges.
I don't know the details of your contract, but typically if you work at an agency with a salary, you will get lower or no commissions. Its possible his claims could be true, or there might be better offers out there.