Starting a Life Agency that Also Sells P&C? Worth It?

[Marym]

Been in the life business almost 10 years now, a top level personal producer, great income etc.
I have many street level contracts now and was thinking about just opening an office so I can hire people to set my and my future agents appointments, scrub paperwork etc This would make me way more money as those above mentioned things are time consuming for me.

I have always steered clear of the NAA's of the world in recruiting practices. I have seen some good people fail with hefty roll ups etc

So I was thinking just hire a few agents- I could have the commissions of their sales go to the agency and pay them a set amount.. or something like that. They would get free appointments so all they have to do is sell.

I have many companies I work with. My clients always feel good about me finding them the best "deal" based on their health rate etc.
Is property and casualty insurance like that? is there a compulife or software out there to find the best rate with home owners, auto, commercial insurance etc?

I also wanted to know about selling home owners insurance and the such in my office as well. I have a very large book of business.. I am sure we could call some of my clients and offer these other types of insurance. Is this a good way to go? I only have a L&H license. is it hard to get into p&c? is it worth it? What companies have the best rates for home, auto commercial etc?

what conflicts could one foresee? I read somewhere that you cant just get a street level contract with a P&C company. this true? if so, is there an IMO type thing for P&C people to go and get a contract to sell independently in your own office?

 

[MikeM.]

IMHO, you should go for it; especially if you already have a large book of business. You already have a large warm market waiting to be ask to buy P&C.

P&C license test is no harder than the Life License test. Just be aware that P&C requires more services than Life and their commission is much lower as well. I believe contracts ranges from 5%-15% depending on who you go with. Captive agents are on the lower side of the commission and independent on the higher end. Depending on your state, as an independent broker, you may be able to charge Broker Fees on top of the commission.

Now, the hard part is finding a cluster that will give contracts to you. It's a lot harder getting contracts in P&C than in Life. But I think you have an edge over new agents because you already have a book of business that you can easily cross sell to. Do your research in the P&C section and find a cluster that you might want to work with them and give them a call.

 

[Marym]

ok thanks for the info! I didn't know that this was going to post. after I clicked the button it disappeared so I posted something similar and then saw that posts to not show up until approved.