Buy Captive or Start Indy P&C?

[indienoise]

I would try to get some real answers about any recent or upcoming rate revisions. Don't know where you're located, but in my region AS has either already had approved, or has filed for, rate increases of 20% or more in my and neighboring states. That would definitely affect your income as an AS agency owner.

 

[RicFlairII]

I would try to get some real answers about any recent or upcoming rate revisions. Don't know where you're located, but in my region AS has either already had approved, or has filed for, rate increases of 20% or more in my and neighboring states. That would definitely affect your income as an AS agency owner.

This is good advice.

However, if the OP is waiting until Allstate becomes competitive, they may be
waiting a long time.

Out of my 25 years, we were competitive for maybe 10% of the time.

They also constantly raise rates, and at the current time it appears they are trying to condition the agents for even lower commissions.

 

[GXR2]

I quote and take business from Allstate clients more than any other captive. These are long tenured clients disillusioned and frustrated. Rate increases and lack of service. I'm not sure if the latter has to do with AS agents having little time and no support or the disregard of the agents.

As far as life insurance is concerned, it's important to remember that the time between acquire and close is much longer than with P&C. If a good part of your pay rides on life sales at specific intervals like monthly or quarterly and you're not seasoned at it it may be rough going.

 

[indienoise]

This is good advice.

However, if the OP is waiting until Allstate becomes competitive, they may be
waiting a long time.

Out of my 25 years, we were competitive for maybe 10% of the time.

They also constantly raise rates, and at the current time it appears they are trying to condition the agents for even lower commissions.

It's weird. This time last year, Allstate couldn't hang in terms of premium. Beat them left and right. The past few months I haven't been able to beat them on pricing (though I can outdo them all day every day in terms of coverage), but I know their HUGE increase is coming so I just tell all my prospects I'll talk to them again in the next few months. :/

 

[cgreene]

Best part is when customer finds out what their deductible is and what's actually covered.