Why is P&C So Terrible

[sambrody24]

so as a lot of very helpful posters know I am quite new, I have a firm commitment to life insurance and all its financial planning cousins, but i read these posts and wonder....If P&C takes years to build a book, is almost impossible to get appointed for, makes you starve until you get a decent book, and has to many agents working it and selling their offices what on gods green earth is the allure of this side of the industry? I feel like im missing something....something huge

 

[Bertolinoins]

The answer you are looking for is one word... "renewals". You make one sale and get paid for as long as you can keep the account.

The barriers to entry are also what makes a P&C book of business so valueable. Sure, it takes time to build up a book and make a six figure income but once you do it snowballs and you make a great living while working and prospecting very little (in comparison) and at the end of your career you can sell your book of business for 1.2-3 X annual revenue. You say these guys are selling their offices like it is a bad thing... most of them are cashing out. It may have been a bigger payday 4/5 years ago but they are still clearing a tidy sum.

A P&C career (if you do it right) is 5-7 years of really hard work.. and 35 years of fun. In the life business you can get up and running very quickly and there is a small group of elite life agents (MDRT) that have tied into estate planning attorneys and CPA to get handed lucrative estate planning cases on a regular basis and get compensated very, very well... but most guys hustle hard for a few years and burn out. You have to be a pretty darn good salesman to make a good living selling life. There are a ton of very average (or below) P&C agents that died as multi millionaires just because they were willing to grind it out. You don't have to create a need with P&C... you just need to be there around renewal time wth a competitive price.

I have hired several producers that flamed out at NWM or NYL after 18 months but went on do to very well selling commercial P&C. It is a much easier sale because the client is going to buy the coverage... it just depends on if they will buy it from you or somebody else.

 

[sambrody24]

hmmm, 5-7 years of hard work, building relationships with clients. That sounds a lot like owning your own company. I feel like this could lead into the 92% of agents fail in the first 18 months conversation. Do to many life agents just focus on sales sales sales and not enough time on learning how to sell so they can teach it to other agents they hire to grow their own agency?

 

[bill3173]

There's nothing terrible about it. It takes a lot of $$ to get into p&c and be successful.

You read the posts on this board from a lot of people that want to be in the business bad enough that they are willing to do it the hard way. I guess that can work as well, if you're really good and want it bad enough, but it's a long shot. A very long shot.

Had a health carrier rep call me recently to let me know that he was taking a position with a top name p&C company. It put a lump in my throat, because we've become friends over the past few years, and I know he can't afford it.

He will most likely get treated like crap and leave broke, but what can you do, good luck.

 

[FLInsa]

What is so "terrible" about P&C?

Think about it... you write a $50,000 commercial account, get paid $7,500 EVERY year for as long as you keep the client happy.

And as a previous poster alluded to you, once you have say five clients whose accounts are fifty thousand plus, which isn't a lot, you can see that snowball effect kicking in.

Also, remember that when it comes to P&C everyone and every business needs it... so that is always a plus - especially in this economy.

And as for people selling their P&C book of business, I don't know where you are at, but here in FL I've been looking to buy a GOOD book of business for over 6 months now and can't find it.

The only book of business I've found for sale are from Allstates, FedUsas, and the likes, to which I said "Thanks but no Thanks".

 

[HealthGuy]

Try yanking that old commercial account away from the old broker. Yea, good luck...Maybe you can do that 1 in 20 times you prospect for them. Do you always get them to sign over an AOR on the commercial account before you do any work?

 

[FLInsa]

Try yanking that old commercial account away from the old broker. Yea, good luck...Maybe you can do that 1 in 20 times you prospect for them. Do you always get them to sign over an AOR on the commercial account before you do any work?

Well, put it this way, if someone is in the P&C business and he/she can't write $100,000 of NEW business premium ($15,000 commissions) EVERY month, then he/she really should consider another career.

 

[HealthGuy]

How many P and C guys are actually writing 100K in either personal or commercial lines every month??? I doubt very few.

 

[FLInsa]

How many P and C guys are actually writing 100K in either personal or commercial lines every month??? I doubt very few.

What do you mean?

I have 3 producers and they all produce at least $100k every month.

100k of new business every month is the "standard" producing average for an established agency.

 

[HealthGuy]

FLIns...maybe they do, but I am a P and C newbie, no interest in starting off doing any commercial..considering both Smart Choice and Superior Access to write busines through....