P&C Renewals: The Honeypot?

[Josh]

I've heard about Allstate's changes, but they aren't going after the small agencies, they're going after the poorly performing ones. They like small agencies and have a great scratch agent contract, but they don't like to watch the size of an agency stay static or dwindle.

Allstate has always rewarded those who perform and those who continue to perform should continue to get the same or better pay, and the folks that have been skating by will need to move on to greener pastures. That 8% number is just one piece of the pie.

They do cut what business they're writing in certain areas, especially after watching what happened to their friends at SF as a result of having too much risk in one dangerous spot and watching Katrina hit them pretty hard.

Allstate does great by a lot of agents.

 

[Sales71]

Medicare are u associated with allstate???

 

[Josh]

Medicare are u associated with allstate???

I managed a small Allstate agency for about a year.

 

[1manshow]

Just like anything else...renewals hit 250K you need more staffing...renewals hit 500K you need more staff...750K more staff...haven't hit the next plateau but I'd guess it'll mean more staff...again Could be worse though....could be an Allstate agent

 

[Guest]

Could be worse though....could be an Allstate agent

Oh SHYT!


BOOM!

 

[Sales71]

Just like anything else...renewals hit 250K you need more staffing...renewals hit 500K you need more staff...750K more staff...haven't hit the next plateau but I'd guess it'll mean more staff...again Could be worse though....could be an Allstate agent

1manshow means you have no staff..so that means your renewals are at less than 50K since you can not afford a staff huhh.

 

[Josh]

1manshow means you have no staff..so that means your renewals are at less than 50K since you can not afford a staff huhh.

Read, fire, aim?

 

[djs]

As a more serious, direct, answer, yes P&C renewals are great. You will not be able to retire on them however, since it takes work to keep them coming in.

You are fishing for a lot of answers without any specifics on what it is you are trying to do, which makes it hard to give decent answers. It's a bit of a catch 22 and hard to ever answer completely on a forum.

In general though, it takes between 5-7 years of hard marketing to build a solid book of business to somewhat milk the renewals. Even at that point, you need to replace the losses. Keep in mind, there is always the unforeseen, such as the current economy. I lost around 30% of my home policies due to foreclosures. That was a big OUCH! The volume I'm writing them at has diminished dramatically (and any honest P&C agent is having the same type of issue).

There are always things that happen. There is always work to be done, but yes, it's nice looking at my deposit statements and seeing the renewals just come in. It's an extremely tough market sometimes though.

Dan

 

[Bertolinoins]

There is no better lifestyle in the insurance business then owning a large book of preferred personal lines business. It takes longer to build than commercial lines but once you acquire (organically or through a purchase) a significant preferred personal lines book. It is stable, very profitable and sells for a high multiple when you are ready to retire.

 

[BTFuzz]

There is no better lifestyle in the insurance business then owning a large book of preferred personal lines business. It takes longer to build than commercial lines but once you acquire (organically or through a purchase) a significant preferred personal lines book. It is stable, very profitable and sells for a high multiple when you are ready to retire.

Truer words were never spoken!