Wanting to Go P&C

[Gadjit]

Hello all,

I am a 16 year life and health agent that has been self employed for the last 14 years as an independent broker. As is the case in my town, most agents are struggling with new sales and client loss.

My idea is not a new one.....go into the P&C end of the biz.

I have a friend who is a great salesman with excellent organizational skills, and whom I trust. We are thinking of a joint venture.

Can you please lend your opinions as to what pitfalls I can expect, which companies are best to contract with, should I look at a company agency (Allstate, Cotton States, etc) or stay independent, and lastly, where can I find a business model / plan?

Here are my aces: I own my own building with great exposure. I have a 14 year name in the L&H side of the biz, and I have very low physical overhead expenses.

Thank you in advance for all your information, and any alternate suggestions would be welcomed

Have a great day
David

 

[Mark]

My question is why % of commission does an avg P and C agent make?

How many clients do you have to have to break even, in order to pay the rent and bills?

I've always heard that you have to have a lot of clients to make it in P and C.

 

[b61mack]

i am a new start up.....it seems the only company that will give us a chance is progressive.... also i am trying to figure out what wholesaler to hook up with.....the other companies don't want new start ups.....stay away from allstate and state farm...to many, bad stories on this form....about them....good luck......i am also trying bristol west.group..and erie....

 

[1manshow]

Sounds like you're in a pretty good spot... good credibility...etc.....if you can find a P & C market that will take a chance on you. That seems to be the biggest obstacle..well...and the lower commissions

As far as a business plan, that might be a tough one without a market as of yet. IMO You really need to know your "target" before you can go lookingfor a market/company to license with. Do you have a target market on the LH side ?

 

[Gadjit]

1manshow,

Historically I have targeted individual Life & Health sales and also found a niche in the 2-9 group market. Unfortunately, the 2-9 groups seem to be failing or cutting insurance benefits due to the economy, and individual Health sales have all but dried up.

Since I have no idea what is involved with a P&C office, I was wondering how one goes about setting up a business model or finding out what is required. Please forgive my ignorance, but I cant ask intelligent questions at this point due to lack of knowledge of this side of the field.

Thank you
David

 

[RenegadeAgent]

As a P&C agent, I say go for it. The residual income is awesome. I have some clients that have been with my agency for 30 years or more. I lucked out and bought the business from my step-dad.

Why not look at buying a book from another local agent? A tremendous amount of insurance agents are in the 60-65year old age range and are looking to retire soon.

That's much better than starting from scratch. Then you'll have all the appointments in place.

 

[djs]

I support people who want to get into P&C, but at the same time, you have to ask yourself, 'If life and health is drying up, what makes P&C a booming business for me?'

Odds are, its having the same problem as life and health in your town. In general, people are having to make do with less, either a lot less (laid off/unemployed) or a little less with hours being cut back. Everyone is trying to find a way to save a few dollars.

I work with people every day in my P&C business trying to help them cut premiums a bit. I do this to keep from losing them as a customer completely. At the same time, I think if I was starting in P&C today, I probably wouldn't last long. In my area, its become MUCH harder to find new business. Still there, but it's not as good as it was a few years ago.

Keep in mind, P&C requires a few years to develop a decent revenue stream. If you have that perspective, then it can work well. If you are looking for a quick replacement of lost income, then it will be tough. You can do it, but it will be tough.

Dan

 

[the mayor]

To add to all the above...
You haven't given a lot of details.
When you say P&C....do you mean personal lines or commercial?
What state are you in? Is your area rural or city....and how is the local financial picture?

 

[FLInsa]

Do you know what a General Liability policy is?
Do you know what an EPLI policy is?
Do you know what an Equipment Breakdown policy is?
Do you know what Workers Compensation is?
Do you know what a Dwelling is?
Do you have at least 8 months of living expenses set aside?
Do you have at least $30,000 in the marketing fund to carry your marketing through the next 4-5 months while the agency is not making money?

If you answered yes to all of the above, then I say go for it.

If you answered no, then find an agency that is willing to cross-train you and go that route.

Good luck.

 

[b61mack]

hi....i have been looking for companies that will work with new start up's in p&c....i found progessive and foremost. foremost is part of farmers, bristol west and zurich. they are receptive to new start up's....progressive is very concerned that you are not part of, or connected in any way with any of the captives......they asked me in writing in several different ways.....i want to be able to offer full service....i don't want to leave any money on the table. let say i talk with a customer....they say i don't need health insurance thank you...but i need auto.......or home or flood.....oh i am sorry i only sell life/health.....they call allstate.....a few months later they need health....they call allstate !!!!!!! just my opinion. other will disagree. but i am running my ship my way...as frank sings "i did it my way"....