Should I Sell / Merge?

[nyc2phi]

Keep plugging away, changing your strategy, and find what works for your carriers.

I have one direct commercial carrier and write plenty of commercial business. The rest you can try to place through a wholesaler like Morstan. They have more carriers then you need.

You're just not focused on commercial. Worst case scenario hire a commercial producer. No need to sell out

 

[GXR2]

If you're looking to build wealth commercial insurance is not your best opportunity. Look for ways to diversify your income and grow your net worth outside of insurance. You can be financially free in 10-15 years and get out of insurance completely if you plan right.

 

[Beachguy]

If you're looking to build wealth commercial insurance is not your best opportunity. Look for ways to diversify your income and grow your net worth outside of insurance. You can be financially free in 10-15 years and get out of insurance completely if you plan right.

I agree. I built an agency mostly commercial, it's larger than the OP book but it's a great deal more stress. I agree with this post here....you make money already diversify away from insurance. Start a donut shop . Liquor store..apartment complex...insurance is the slow and steady income producer. Even in commercial, the difference in commercial is contingecy bonus are bigger but retention risk is greater

 

[cottonland]

Where are you located?

 

[Gulfman]

If you're looking to build wealth commercial insurance is not your best opportunity. Look for ways to diversify your income and grow your net worth outside of insurance. You can be financially free in 10-15 years and get out of insurance completely if you plan right.

Interesting...so you are saying invest in passive income using the $ made from insurance?

 

[robtmccarthy]

In my efforts to expand into the commercial world, I'm starting to realize I simply can't compete w/ the local big dog IA's. They have like 100 carriers & a market for every risk out there, along w/ account managers & an infrastructure that I can't compete with.

I'm starting to think it would make sense to approach them & ask about a merger. I have a very profitable personal lines book that's about 3MM right now. Any idea how this would even work? What would be in it for them per say?

Impressive to be $3M agency with mostly personal lines. You're killing it! Unless something is broken just keep going!! If you're growing profitably I wouldn't bother refocusing on commercial unless you just hate personal lines. Which I totally can understand, I happily haven't written a PL policy in 2 years.

Don't be intimidated by the big IA's they might have markets for everyone and whatnot but their service tends to suck. Some of my best clients come from the big outfits. They like talking to a real person instead of an answer prompt or service center. If you know your markets, you can kill the big dogs.

Commercial is all about the service.