Why Do PC Companies Hate Startups ?
- Thread starter jmatos
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Re: Why Does PC Companies????
It takes a lot more to get a P&C agent up and running than a life/health agent. They don't want a new P&C agent learning the ropes on their loss ratios.
It actually works both ways. Experienced P&C agents don't like bringing on new carriers. Its sometimes more work than benefit.
Dan
It takes a lot more to get a P&C agent up and running than a life/health agent. They don't want a new P&C agent learning the ropes on their loss ratios.
It actually works both ways. Experienced P&C agents don't like bringing on new carriers. Its sometimes more work than benefit.
Dan
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Re: Why Does PC Companies????
IA Companies dont train you, Captives do...>Avoids E&O claims and hassles
IA Companies dont train you, Captives do...>Avoids E&O claims and hassles
Dan is right on - that is the main and most important reason. I would also add that they don't want their staff tied up answering newby questions and nursing along a new agent to the independent agency system.
One other thought. It takes $$ for an insurance company to start a relationship with a new agent. New agencies are no different than a lot of start up businesses in that the failure rate is higher so why sink that capital into a venture that has less chance of succeeding than an established agency.
My points are valid but secondary in importance to the key factor Dan brought up.
One other thought. It takes $$ for an insurance company to start a relationship with a new agent. New agencies are no different than a lot of start up businesses in that the failure rate is higher so why sink that capital into a venture that has less chance of succeeding than an established agency.
My points are valid but secondary in importance to the key factor Dan brought up.
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Also, it doesn't look good for the company being represented if a client asks you questions and you don't have a clue.
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They only have so many resources and they get a much better ROI by investing in their current agents that are already being productive for them.
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At first, I didn't understand either, but as I watched new agents, I saw why. Great examples are listed above. Over the years, we have added many great direct appointments because we had built a solid book of business.
Ouch! So how does one get started? I have my P&C and am partnering with a person that has a tremendous deal flow for his own business, which is a natural partner for homeowners insurance. I have the potential to submit several policies weekly provided I have someone to submit them to. Once I build my book , I would have the leverage needed, but what do I do until then? work with wholesalers, GA's?
Input would help...
Input would help...
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nebies turn in bad biz and it leads to a lot of claims
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