Questions for P & C Principals

[insurancemansam]

Surefire way to fail.

I disagree. I see people all the time over think everything and waste time. This business is all about hard work.

 

[MINewBeginning]

it's a great spreadsheet, but for someone new about to enter the P&C arena, how would one structure this?

I know I have a PL market for it, about 300 hot prospects ready to enrolled if my carriers beat Allstate, Statefarm and Farmers.
- - - - - - - - - - - - - - - - - -

I disagree. I see people all the time over think everything and waste time. This business is all about hard work.

Agreed. I dont have any biz plan when I start out in L&H, I just do it...

 

[Soundadvisor]

I'm not sure that is such a great business plan (300 hot prospects as long as you can beat Allstate, State Farm and Farmers). Price is often a reason many consumers change insurers but it's not a solid foundation on which to build an agency.

I'll assure you most of those 300 prospects don't have the coverage they think they have or need. Most of those 300 prospects don't realize if they have a problem it's them against a large insurance carrier. Who do you think is going to win?

Those companies sell policies they want people to have, not coverage the consumer actually needs. Point out coverage differences, suggest consistent limits, perils and deductibles, combine coverages when you can, help people understand what they are buying or in some cases not buying, make their insurance easier to administer and be there to use whatever leverage you have when they need you.

I'd have confidence in the long term success of a business plan like that.

 

[todd02]

I too don't have a business plan to detail cost per employee. I instead use a employee profitability calculator that uses the average commission I earn vs how much marketing/appointments in order to break even.

Let me point out that the smartest way I've found to hire a producer is have them be your marketer before you promote them to a producer. If they are good at bringing in new leads or working leads you buy then they will kick butt as a producer.

 

[AZDave]

What is the ratio of commission to expenses with and with out a 1099 producer excluding rent and salary based employees?

My suggestion, don't rely on any producer to pay for CSR payroll. A Good CSR should be in place before hiring producer.

Another question is after utilities, office supplies, E & O, marketing, etc. how much of the $100 is left before or after tax if you are a one man shop?

You need to know what it costs to open your door each month. You have those fixed expenses that do not change. After you make the 'nut' , the rest is for home.

Looking to open my own agency and trying to figure expense to net income ratio for p & c only agency.

Focus on premium goals.