Success in Numbers?

[Keelie0216]

After a year in business as a P&C agent near Houston, I'm evaluating my business plan. I have direct appointments for personal lines and a few brokers for surplus and commercial. The problem is, I have a few carriers who write home or auto, but not both. The only decent mid-range auto carrier I have currently is Progressive. Sure I have MetLife and Fidelity, but the credit hurdle is too high for prospects with less-than perfect credit. Do I keep plugging away and growing slow on my own? or do I join up with a large agency that has 200+appointments and allows me unlimited access for growth (splitting my commission with them, giving them 20%, owning 80% of the book, with only a 1x the annual commission buy-out option should I ever choose to sell back to them)? Requires a $5K deposit, but E&O, comparative rater and agency mgmt system are the same as I currently pay. Also, I have mediocre credit, like a 650... which prevents me from getting a few appointments. 6 years in the industry so far. Opinions?
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Anyone?? Wanted opinions of other professionals. Thanks-

 

[GMANPRO]

Have you looked at SIAA? I don't use them but I know many people who love that cluster.

 

[nyc2phi]

Need to shop around for more clusters. SIAA is not the only one, companies like Superior Access might be decent for someone that has a book already and I liked the split that Iroquios was offering.

Check out agencyequity's website for other clusters in ur area...

Insurance Agencies for Sale | AgencyEquity.com

 

[Keelie0216]

Superior Access sucks. I tried them, but they personally underwrite your submissions and increase coverages or decline apps that carriers would normally approve. They "cherry pick". Of 6 months paying them, I wrote zero with them. Plus you don't even have direct access to service your own book, get an ID card, add a driver, etc... I contacted TWFG, Agent's Alliance, SIG, and SIAA for now.

 

[Bertolinoins]

Sounds like a pretty good deal, I am not sure why a large agency would offer it.

 

[xrac]

80% of $50,000 is better than 100% of $20,000.

 

[tins]

80% of $50,000 is better than 100% of $20,000.

That's silly, obviously 100 is more than 80. I was unsure, but I called Rick and he confirmed it.

 

[ins4u2]

Id recommend going with a cluster/large agency. Its better for ur customers & u can be their auto&home solution.

Ps. If the majority of our book was with progressive, i think id leave the industry.

 

[CaptiveGuy]

Id recommend going with a cluster/large agency. Its better for ur customers & u can be their auto&home solution.

Ps. If the majority of our book was with progressive, i think id leave the industry.

Or the OP could just specialize and be a non-standard agency. But you are right, if the clients don't have the credit to qualify with the existing carriers then adding more preferred appointments won't help.

 

[Scottyj]

Captive guy is right. there is an agency here that only has like 3 standard carriers and then dozens of non standard. He has made a killing over the last 30 years of writing that. Granted you have to deal with Sketchy people, and dealing with clients bringing in cash to pay their premium each month...