Prospective Agent Advice

[cola2001]

I've been reading and searching away for a few days now, and I think I'm worse off now than before I started

This is my situation. I'm looking to leave my current job because I feel I just have to be in business for myself to be happy. I've been in financial services (always sales end of things) for about 15 years. I've sold the whole spectrum of financial products, investments and life insurance (no P&C experience). I've thought hard over the past few months and decided running my own business in the insurance world is what I want to do.

I know going independent has many many benefits, but I don't think that's the right move for me because I don't have the experience working/managing/operating a pure insurance company (it's always been financial services primary, insurance products mixed in secondary). I also don't have an existing book to provide some kind of cushion the first few years while I get off the ground. So I'm pretty sure going independent is not for me right now, based off of what I've read on here.

So I have focused more on the State Farms, Allstates, Farmers etc., with the goal to buy an existing book or acquire one somehow. I know I don't want to start from scratch. There seems to be terrible problems with new agents all over the place with each company offering a worse deal than the other. And it seems you are not really running your business representing these companies, but they are really running you (and will pull the rug out if you don't play ball their way). From reading over the past few days I can't figure out how/why anybody would want to start/take over an agency with these guys? It seems it's just asking for a bad deal and financial ruin.

But my gut feeling is that if I want to give this a go, a captive agency is still probably my best bet. So my question to the experienced and new agents working for these big captive companies is if you were looking to start today with one of these guys, knowing what you know, which one would it be, how would you approach it, and why?

Thanks!!!

 

[OregonNewbie]

My personal opinion would be to probably go with Allstate or State Farm. I'd steer clear of Farmers. Conduct a search on them throughout this forum and you'll find out many reasons why.

Keep in mind that you do not have to run your own agency as a captive agent to get experience. You can work for one of these agencies as a producer, working for an agent. This would give you the experience you need if you do desire to eventually go indy, without the financial investment.

 

[DHK]

I'd start networking at your local NAIFA chapter. Talk to the chapter leaders of what you're looking to do and who they would recommend that you talk with to get started.

Why abandon the full financial services offerings though? If you have your series 65/66, you can start up your own RIA, or be an IAR for someone else's RIA. If you have a life license, you can easily get independent contracts for the companies you like. Just make sure you have the proper E&O coverage.

Just another thought.

 

[AdvisorsIns]

I would steer you towards the independent route. I worked for State Farm for 4 years. You don't want to go that route. You can't buy in and will never own your book. Allstate - most of the agents around my area wish they were independent. Don't be scared of a scratch independent agency. I did it last march and have a book of 700k already. Without P&C experience I would talk with some local independent agencies in your area to see if you can start growing a business within them and split off over time. That would be the best way for sure. Feel free to call me anytime. Miles. 864-509-0009

 

[jugglerz03]

I would steer you towards the independent route. I worked for State Farm for 4 years. You don't want to go that route. You can't buy in and will never own your book. Allstate - most of the agents around my area wish they were independent. Don't be scared of a scratch independent agency. I did it last march and have a book of 700k already. Without P&C experience I would talk with some local independent agencies in your area to see if you can start growing a business within them and split off over time. That would be the best way for sure. Feel free to call me anytime. Miles. 864-509-0009

I new going in new and your post gave me so much encouragement. I am going in and will be starting at an independent agent. I am ready to work hard to get to where I need to be at.

 

[AdvisorsIns]

Takes a good 6 months to get through the learning phase. Just remember to be confident. Never be ashamed to have to get back with someone to answer a question. When speaking with clients remember that even though you are new you probably know 90% more than they do. It's all about knowing the right questions to ask and listening. You can put together a proposal to meet their needs and get back to them. I like to prepare proposal and not quote people. Same thing but one is more professional and brings credibility to value and not price. Anyone can call a 1-800 # to get a quote. They come to us for proposals.