Should I start my insurance brokerage Or state farm agency?(If my life ins sale is not the top)

[insuranceforever1]

Hi Everyone,

I'm currently a state farm teammember for over 4 years in NY and I would like to start my own state farm agency. So I spoke with my state farm agent and he told me I still need improvement on life insurance and commercial insurance productions because I'm not producing BIG policies. He said when applying to become an agent the back office will need to see I have strong sales skills on life insurance. He want me to be consistent on producing more big cash value life insurance and learn couple years more before apply for agent position in order to become successful. My question is this necessary? I think I learned a lot for the past years from this agency and I'm ready for it , maybe he does'nt want to let me go? Or he doesn't want me to be decline by back office and lose money?

My second choice is starting my own insurance brokerage, I think this way is easier to get start but might be difficult to stay in business for long because I dont really have a lot of broker experience and dont really know what to expect.

Please kindly share your thoughts , really appreciate your comments!

 

[marindependent]

improvement on life insurance a

Yep, thats because State Farm charges high amounts for life insurance and they make a lot of money on this.

He want me to be consistent on producing more big cash value life insurance

And they make a LOT of money on these,

My question is this necessary?

No - but its an excuse they are using.

Learn on their Dime. Take their advice and learn to write commercial policies and then reconsider your options.

 

[JBIACA]

I would recommend buying an existing brokerage. Starting from scratch at this time is very, very challenging. You would need to have a lot of money in savings to get over the hump. Buying an existing agency with good carrier appointments is a much better route. After 4 years you are probably as ready as you will ever be.

 

[Markthebroker]

Yep, thats because State Farm charges high amounts for life insurance and they make a lot of money on this.
And they make a LOT of money on these,
No - but its an excuse they are using.

Learn on their Dime. Take their advice and learn to write commercial policies and then reconsider your options.

Despite the fact he has neither an awesome cape or gorgeous hair, and much less the ability to fly, marindependent is correct.

 

[marindependent]

Despite the fact he has neither an awesome cape or gorgeous hair, and much less the ability to fly, marindependent is correct.

OK that deserves a Like

 

[whatyouwantfinally]

As far as being a State Farm agent, he's right. SF has been pushing their agencies to sell more life insurance and penalizes them for not selling enough of it. That's probably going to get worse in time, and it's not just life policies. You'll be pushed to sell financial services (loans) eventually too. If SF is the route you wanna go, listen to him.

In terms of whether that's the best move overall, it's not. SF's life policies are overpriced; their model is to build a customer base that is loyal to their brand and doesn't shop around. You don't want your P&C commissions contingent on selling their life policies.

As someone else said, it's not a great time to try to open an agency. It's actually the worst. I'd advise jumping ship and working for an independent agency until the market loosens. You've probably learned most of what you can from SF after 4 years, but there's a lot you can still learn from an independent. $ will probably be better too.

 

[MVI]

Hi Everyone,

I'm currently a state farm teammember for over 4 years in NY and I would like to start my own state farm agency. So I spoke with my state farm agent and he told me I still need improvement on life insurance and commercial insurance productions because I'm not producing BIG policies. He said when applying to become an agent the back office will need to see I have strong sales skills on life insurance. He want me to be consistent on producing more big cash value life insurance and learn couple years more before apply for agent position in order to become successful. My question is this necessary? I think I learned a lot for the past years from this agency and I'm ready for it , maybe he does'nt want to let me go? Or he doesn't want me to be decline by back office and lose money?

My second choice is starting my own insurance brokerage, I think this way is easier to get start but might be difficult to stay in business for long because I dont really have a lot of broker experience and dont really know what to expect.

Please kindly share your thoughts , really appreciate your comments!

I started at SF as a CSR turned salesman (two years). I then contacted SIAA and never looked back as an independent agency owner. They give you a lot of support, access to carriers, and protection from typical volume requirements pressed onto newbies for most agencies.

Being a "broker" isn't much different than being with SF aside from having to be good enough at technology to navigate a bunch of different carrier platforms. Even for me, someone who is very good at tech, it is a pain sometimes.

Aside from that, I know going independent, for me, was the right choice.

 

[Markthebroker]

I started at SF as a CSR turned salesman (two years). I then contacted SIAA and never looked back as an independent agency owner. They give you a lot of support, access to carriers, and protection from typical volume requirements pressed onto newbies for most agencies.

Being a "broker" isn't much different than being with SF aside from having to be good enough at technology to navigate a bunch of different carrier platforms. Even for me, someone who is very good at tech, it is a pain sometimes.

Aside from that, I know going independent, for me, was the right choice.

I helped build a State Farm agency, then went independent about 10 years ago. You are correct, it is pretty much the same. Aside from the fact that it's completely different in almost every way, you are correct.

 

[MVI]

Jokes aside...selling insurance is selling insurance regardless if you are selling insurance in Hawaii for a State Farm agent like I was or selling insurance independently in Maryland as an independent insurance agency owner.

I've done them both, two different cultures, 5,000 miles apart, captive versus independent, and I can confidently say that helping people is helping people.

The main difference is the systems that the agent has to get accustomed to.

Regardless of who you represent, you must get in front of qualified buyers and make the sale. I'd even say the "product" doesn't matter. Annuities, life insurance, car insurance, home insurance, whatever insurance you can think of...it's all the same.

You are still clicking buttons on a computer to bind policies. Maybe your CRM is Salesforce, dictated by your captive contract. Maybe your CRM is Applied Systems because you chose it yourself. But at the end of the day, you still have to get on that phone, make calls, and help people.