Rank these Captive P&C Companies as the Best Companies to be with

May 23, 2008

  1. xrac
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    xrac Guru

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    There seems to often be questions about various captive P&C companies as to the merits of being with them. I have saw questions about American Family but really no information. These are the captive companies that have a major presence in our market. How do you rank them in order of who would be the best to sell for. Feel free to add other names if there is someone you would like to add but be sure to rank these: State Farm, Allstate, Farmers, and American Family

    I rank them:
    (1)State Farm
    (2)American Family
    (3)Allstate
    (4)Farmers

    But what do I know. I am not in property and casualty although I have considered it.
     
    xrac, May 23, 2008
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  2. djs
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    djs Super Moderator Moderator

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    I have no idea who American Family is, so I can't rate them. Also, I'm not sure what the ranking is based on, so I'll do it based on likely success if you are an agent for them.

    Keep in mind, this will vary tremendously by state, due to many factors. It further varies by geographical area, based on rates in that area. For instance, none of the ones mentioned work well if you work in Oakland, CA, but do they all do pretty well in San Jose, CA, 30 miles away.

    1- State Farm. Good training and support. Very hard to get into to. Contract is extremely restrictive.
    2 - Farmers. Lousy training for the most part. Decent rates. Very liberal contract, allowing you to deal with outside business.
    3 - CSAA (AAA). This is more of an employment offer rather than an independent agency, but they have a very loyal following and customer base.
    4 - Allstate. A few years ago, they would have been #2. The agency force in California (and other states) is in turmoil right now. They will recover once their reserves recover.

    All of that said, Farmers probably has the highest agent failure rate, due to the fact they have the lowest barrier to entry. If you pass the credit check, you can become an agent. Of the agents that make it past 2-3 years, most seem to succeed as well as any of their counterparts.

    Dan
     
    djs, May 23, 2008
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  3. aspiringwealth
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    aspiringwealth New Member

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    How about getting on with State Farm and going through their training then quitting and signing up with Farmers?

    Am I missing anything here? :biggrin:
     
  4. Recruiter1
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    Recruiter1 New Member

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    You're kidding right? lol
     
  5. djs
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    djs Super Moderator Moderator

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    Lot's. This would probably cost you a few hundred thousand dollars, since State Farm isn't going to pay to train you, get you setup, and then have you walk out the door for free.

    If you read the contracts, you'll realize that this isn't practical.

    Dan
     
    djs, May 30, 2008
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  6. aspiringwealth
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    aspiringwealth New Member

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    My understanding is that you do not sign a contract until after your 'employment' period of 5.5 months. At that time, you sign a TICA contract that can be terminated at anytime by either party. During the 'employment' period, you are paid a salary by State Farm, get licensed and go through training. Upon conversations with AFE, you may become an 'Additonal Intern' without knowing where your agency will be and if you do not agree to take it, your employment is terminated. I have not been made aware of any training chargebacks, etc, or a non-compete during 'employment' before 'contracting'.

    Flaws?
     
  7. aspiringwealth
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    aspiringwealth New Member

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    A few hundred thousand is a bit much unless you are speaking in terms of damages from a lawsuit.
     
  8. aspiringwealth
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    aspiringwealth New Member

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    Oh yeah, not really going to do this, but hypothetically speaking, why couldn't you? State Farm has stringent requirements and it is certainly a lot of work to get aboard.

    Who knows? Maybe someone has tried and found out that they really like State Farm and stick it?
     
  9. P&CGuru
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    P&CGuru Super Genius

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    Allstate is really not that bad, the subsidized commisions for the first 3 years is amazing and very attractive. However the training and support are something of a mirage. They also do come of sounding like snake oil salesman when they try to recruit you. But nevertheless, even with the stringent Underwriting and guidlines the subsidized income coupled with the ability to sell your book of business in the open market is very attractive.
     
    P&CGuru, Apr 11, 2009
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  10. irjack
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    irjack New Member

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    I am in the industry and would rank them ... SF, All State, Farmers, American Family
     
    irjack, Apr 29, 2009
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