P/C or Life

[chickenfarmer]

Great information. Texas... are you an independent P&C or captive? Sounds like you have a nice book none the less. I'm thinking I'll end up at State Farm because we are nearly at agreement on an opportunity and I have no industry experience. At SF, the life insurance commissions are 42% during a person's 1st year with SF and then goes to 30% of 1st year premiums thereafter. Also there's a small trailing commission.

With all your collective knowledge... what's the best route? Independent selling L&H? Affiliated with a company selling L&H? Independent selling L&H and P&C... etc.

 

[Chkndinner14]

If you are in your 20's starting at a captive P and C company could be the way to go. Build your book while you are young and then get more complex with products and services.

As a new SF agent, I would assume you will have a life quota. Don't sweat it, just go out and do it. It's not that big of a deal as long as you are asking everyone.

I think the main difference in the P & C agency and a indie L & H is what you like and are more suited to do.

P & C- Hire, Fire, Train and manage an office and producers.

Indy L & H- Usually a one man show, no headaches with staff.

Which do you like the most?

Good Luck!!

 

[Insurance Phoenix]

You need to find which suits you. I sold for life MetLife for 5+ years and made an average income. Went over to the P/C side and have done very well, made more money. It just fit me and my personality better I guess. I have a friend who started with me at MetLife who is still there and making a great, great income. So it all depends on you.

 

[Texas Insurance Dude]

I was a life agent for 10 years and now have been an independent P & C agent for another 10+ years. For me, it is a no brainer. The renewals and contingencies have made P & C far more profitable and stable for me. Renewals = Stability.
Specifically finding a niche in the commercial lines side seems to really be a way to take off.
However, everyone is different. So finding an area that interests you and working hard in the area should produce good results regardless.

 

[Bertolinoins]

Very good information. Thanks to all of you with experience. Why is it so difficult to sell P&C as well as L&H insurance? Are there that many products to be knowledgable in? For someone, such as myself, beginning in their 20's (barely!).. might the P&C route be better since the time is there to build the agency rather than swinging for the fences with L&H? So many questions!

There is a lot of validity to that line of thinking. I am 32 and have been in the business for almost 9 years. The vast majority of your customers will be within 10 years of your age. Many of my clients are young professionals or second/third generation business owners taking over for their parents that recently retired. I am a "rounder", I write all lines and round out the entire account (personal lines, commercial lines, benefits, life). Since my client base is younger and less established, I sell a ton of term and very little whole life. Term policies are a nice little revenue stream (I use quicklife to streamline the process and minimize my time invested) but it would be tough to make a living selling just life insurance to my circle of clients. At some point in the future when those clients are more established we will look to see if converting to UL makes sense. I bought a nice personal lines P&C book from an agent that is now focusing on life sales. He is in his mid 60's. He has done over $350k in commission in each of the past 3 years. He gets referred into huge estate planning, biz buy sell and structured settlement cases by CPA's and Estate Planning Attorneys that he has been working with for the past 30+ years. Relationships that tight don't form overnight and those types of cases don't get handed to agents
in their 20's and 30's.

My advice is to be a complete insurance agent and fully protect your clients (P&C, life, health) and as their insurance needs grow, so will your revenue per client and overall book of business. Eventually they will have significant UL and Annuity needs and you will be there for those nice paydays. Don't be afraid to bring in experts (wholesalers, mga's, etc) for lines where you are weak... but make sure your client knows you are their "risk management quarterback" that will facilitate covering their exposures.

 

[Texas Insurance Dude]

I would definitely do it all, while you can. I am sure you will be very successful and get very busy and there will likely be a time where you cannot do everything yourself. Just not enough hours in a day. This is when and why most people start to focus in on a particular area.

Although, you will be able to staff for your growth ,with improved revenue, you will likely find that you start trying to focus your more limited time in the areas that are most profitable to you.

It is difficult to be an expert at everything and stay on top of all the changes in the industry.

As you grow, you will be able to hire producers, service rep's, etc. that can be the experts in a particular line within your agency.

 

[Charly]

Does anybody have information on where I can find non-standard drivers such as DUI cases.I am planning on focusing my P&C to that segment.I have friends who have been arrested for DUI who have received solicitation letters from lawyers within the first week of the offense.My question is how do lawyers get all this information.Any input on this would be great.