P&C Start Up

[cgreene]

Most companies won't allow it. Not to mention you are limiting your income and options. Trust me u have been captive twice second time was similar to this and not good idea.

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Expenses is where everyone gets killed have a cheap office no staff to start and you should be able to stay under 700 a month. 500k-750k in new business would be great numbers it's pretty simple on how to get there as well. You need to average 15 new household the week. at least 30 quotes a week Close 30% of this with an average premium of about 1200 then you should be looking at over $45,000 in premium A month.

 

[jkearns]

I'm starting to question you dude? You CANT broker if you're Allstate or SF? And who suggests a captive? If you work in this industry & don't know that then something's clearly afoul in Denmark

Insurance1822, well you can broker if you are Farmers. If Farmers doesn't write it, nor has an appetite for it, delcines it, or non-renews it, then you can write it elese where either by direct appointment with another carrier or by an intermediary.

I appologize, if I miss spoke about other captives like Allstate or State Farm, but I know what I can do as a Farmers Agent. Also in my non-resident states, I am no appointed with Farmers and have other appointments or utillize other intermediaries. Farmers also owns it's own GA, which you write or referr business to.

I have the best of both worlds. Locally, I'm know as your your helpful Farmers Agent and free and indepedent to pursue other aveneues and broker nationally. To help me retain my customers, if Farmers delcines or known renews them, I will take it else where. This specially helps in cases, where we can write there vehciles, but cant write the home.

I suggest captives, specially at top company like Farmers. It's a great place for an agent to start at and learn the business for the first 7 years or so, before expanding into the non-resident licenses and specializing in a specific commercial industry/market. Like I said, I am also an indpendent too in those non-resident states. 99% of all my prospects is from the internet, be it locally or in any of my non-resident states.

 

[cgreene]

So what if farmers rate is just too high.

 

[jkearns]

So what if farmers rate is just too high.

CGreene, I don't prospect locally for people who want the cheapest nor a mono line insurance policy. I stick to bundeling and stick to our affinity groups, which we give huge discounts too. I also am looking for married people, who own a home, has two more vehicles, and then upsell them with the umbrella and California earthquake, which we give additional discounts to for the home for. If they have speciality items like boats, rv's motorcycles, etc. that becomes very handy, since that two qualifies them for more addtiional discounts. It also may help being in California, when most of your competition is not writing a large amount of homes in specific areas and Farmers is. I also sell the personal relationship of having a local agent and not focus on the those who are all just about price. In addition, I do not charge broker fee's for Farmers products.

Now I do admit, when I deal with customers in my non-resident states, then it is about price and it helps to work with GA with access to a multi-carrier rater system in which to help those people, but I also like to work with GA's who I can refer the business to, they quote it, they clsoe it, and they service it, while I still own the expriations and split the commission.

It does help, that I market and prodcue my own exclusive on-line leads myself and do not have to buy leads from on-line lead vendors.

 

[indienoise]

problem is, you're describing the same people EVERY agency is looking for. What has Farmer's got, aside from TV commercials, that:

Travelers
Safeco
Donegal
Auto Owners
State Auto
Mercury
Hartford
Nationwide
State Farm
Allstate
Progressive
Erie
Kemper
Grange
...and others I probably forgot about, or don't know about,

DON'T have?
Saying you get freedom of placing business that Farmer's doesn't want isn't saying much. That might be something in the Commercial world, but in personal lines, if Farmer's doesn't want it, then everybody else probably doesn't either. Being independent with sloppy seconds isn't something I'd personally be touting.

I like my odds better when I have true freedom. Having six or seven carriers out of twenty or however many carriers operate in your state gives you better odds than one out of twenty, yes?
If you like Farmers, they treat you well, and you get all the walk-in traffic you can handle, that's great for you. May it continue for the rest of your career. Just don't call it something it's not.

...I mean, why not Farmer's in EVERY state you're licensed in?

 

[jkearns]

problem is, you're describing the same people EVERY agency is looking for. What has Farmer's got, aside from TV commercials, that:

Travelers
Safeco
Donegal
Auto Owners
State Auto
Mercury
Hartford
Nationwide
State Farm
Allstate
Progressive
Erie
Kemper
Grange
...and others I probably forgot about, or don't know about,

DON'T have?
Saying you get freedom of placing business that Farmer's doesn't want isn't saying much. That might be something in the Commercial world, but in personal lines, if Farmer's doesn't want it, then everybody else probably doesn't either. Being independent with sloppy seconds isn't something I'd personally be touting.

I like my odds better when I have true freedom. Having six or seven carriers out of twenty or however many carriers operate in your state gives you better odds than one out of twenty, yes?
If you like Farmers, they treat you well, and you get all the walk-in traffic you can handle, that's great for you. May it continue for the rest of your career. Just don't call it something it's not.

In my non-resident states, I dont even have to submit it to Farmers, I write to many of the companies you named and many more you didn't, but usually through an intermediary.

 

[indienoise]

I mean, I get it, when you get a walk-in or referral, they've basically already sold themselves on Farmer's, as long as your rates are somewhat approaching sane, you've got the sale.

But for business you go out and hunt yourself, what's your closing rate with Farmer's, versus in other states where you're able to shop around?

 

[jkearns]

I mean, I get it, when you get a walk-in or referral, they've basically already sold themselves on Farmer's, as long as your rates are somewhat approaching sane, you've got the sale.

But for business you go out and hunt yourself, what's your closing rate with Farmer's, versus in other states where you're able to shop around?

All leads are exclusive leads I get from online though my website, which I market on Facebook and other advertising means. In my non-resideant states, we close more, because of the options, but I don't cater to high end cliental for my non-resident states, like I do for my Farmers Agency. I'm selective in who I want to be Farmers, beacuse I want to sell and bundle many policies. Where I bundle and cross sell is about the same as just selling one mono-line policy for my non-resident states. I also can shop every year with my customers in my non-resident state, but for my resident state, I am investing in keeping my client with Farmers for many years to come by getting busienss Farmers prefers in having as a customer.

 

[cgreene]

Yes but they are out of ballpark most of time here or do acv on roofs.

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Because Farmers won't allow it met with them a few weeks ago.

 

[indienoise]

My thing with a captive was even if they're perfect for your market now, things can always change.

Titan Indemnity co was a perfect fit for my market. It was a middle market auto. I was KILLING it. Then they stopped accepting new business and i was stuck with either nationwide or victoria. Nationwide was still really good, but 2/3 of the business i was writing with titan had to go to victoria, so my conversion was cut in half. But i was still getting enhanced commissions for operating a titan branded location.
Then came Nationwide's rebranding. If I had stayed i would be reaching the end of my enhanced commissions, as everything is being forced to convert by jan 1.
Even if a carrier is perfect for you now, it can always change. Rate revisions, product changes, other factors, etc. When you're captive it's out of your control. When you're independent you just take the business wherever it makes sense.