New - Independent Agency

[ehall2]

What would you suggest to do differently and what is a different product you would sell?

 

[marindependent]

"What would you suggest to do differently and what is a different product you would sell?" Impossible to say without knowing all of the details, but I would not quote out 20 to get 1 - you cannot stay in business that way.

I would Move to sell Commercial Insurance, Apartments, Small Bus Packages, Cyber, Term Life, E&O, Add On Sales [Flood, EQ, Pers Umbrellas],I would Sell pencils on the street corner - but I would not value my time so poorly.

Again - I do not know much about your situation.

 

[ehall2]

We sell small commercial, flood and life insurance products. The property market in Georgia is tuff.

 

[RickyG]

This is the worst market except for 1975 and 1976. The P & C companies lost more money those two years than they had made in the past 20 years. I don't know of any company appointing agents now. One marketing rep for one our companies said Travelers was going to cancel one third of their agents next year. So, even if you are an established agency you may still have a problem with markets next year. We are quoting more new business than ever but we don't get many. For example, I have dozens of dec pages from State Farm and Auto Owners than I have ever had. I can compete on the auto but I can't get close to State Farm and Auto Owners on the homeowner. Our commissions are holding steady but they aren't increasing. I got a contract with Travelers and Nationwide through Smart Choice but my progressive contract is direct with them and I have other contracts direct with carriers. But, even being with Smart Choice you aren't safe from termination and production requirements. There is no loyalty from insurance companies today. They will cut your throat in a heartbeat. It's not a good time to be an independent agent.

What state are you in?

 

[ehall2]

Georgia

 

[RickyG]

Georgia

I didn't realize GA was having it tough as well. I guess its just countrywide

 

[ehall2]

Georgia is having trouble because we are the worst state for litigation. Our Govenor recently said, "Georgia is a hell hole for litigation." He is going to try to get legislation passed to reduce litigation. But, that isn't going to happen. Why do I say this? Because the legislature is primarily attorneys.

 

[Policy Monkey]

Being from Florida, I can relate to the out-of-control claims litigation. I just hope GA doesn't follow FLs lead, 'cause what we've been doing has not been working!

 

[thomasm]

It sounds like joining a network in this market is my best option for access to both personal and commercial lines.

As long as the carriers keep allowing the group's downline agents to use the same writing number. Group AP volume is how the little guy cross selling a few home and auto policies here and there can still exist. If they do what Nationwide did, and make every producer get their own writing number, "and oh...anyone with less than 50K is SOL. But you can still write our commercial though." If this happens across the carrier landscape, I'm just going to focus on 100% Medicare & ACA. I don't know what possessed me to branch into P&C anyway. Maybe because it's still the easiest lead to generate. If they think you can save them money, somebody will let you quote them! No need to buy leads. Just pick up the phone and call someone! Or knock on their door!

 

[thomasm]

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There's always life insurance. Only reason why life sales (other than final expense) has been flat for decades is because life insurance sales reps forgot how to make sales calls! They hide behind titles like "financial advisor"! LOL! Just be a salesperson and make those sales calls! Like Ben Feldman still did, even while he was pulling in a million a year towards the end of his career!