The past couple months I have been reading this forum and it has been very informative... THANKS!
My current situation:
I am a captive agent for one of the larger P&C mutual companies (top three: State Farm, Farmers and American Family).
Been in the business for three years with about 1,500 policies on the books (owned by the insurance company).
Currently have three staff members (two full-time, one part-time).
Writing on average 100 policies every month (5-10 being life insurance).
Can you guys help me put together a plan in this thread?
Start off very slowly. I think that the first step will be to try and identify the companies that you will need to have contracts with, in order to be competitive in every market that you work. You should probably have a decent view of the landscape, so that shouldn't be too hard. Collect the information about who you can speak to, when you are ready to move. The better organized you are when you start your research, the better chance you will have of succeeding.
The research should focus on the lines that you are most successful with. Unless you are in NY, life insurance prices are pretty similar across state lines, and it is easy to get contracts with the best companies. Health is harder, and auto and home are even more so. Also, if you do any commercial prop and cas, you will need to do some research on who is competitive.
Get strong clarity on what will happen to your existing clients. You may have to drop all of them. I assume from your numbers, that you are in an excellent walk-up location, and are also good at sales. That will be particularly helpful, if you can't bring any of your clients with you. You can be sure that the company will enforce the agreement they have with you.
The good news is, if you can sell 100 policies a month as a captive, you can sell a lot as an independent. Of course, some people probably walk in just because of the company that you represent, but you will make up for that by getting the people who you couldn't be competitive for before.
If you tell us where you are located, we may be able to give you some more specific advice.
Re: thinking about the captive route myselfGo to Top
Originally Posted by rpoul
Is it common for a company to ask you to list all family and friends as possible clients. I am not comfortable with this.
Extremely common for a captive company... If you want to be successful, do not rely on friends and family... They will also be your biggest pain in the ass because they think they deserve special treatment/rates.
A great way to lose your friends is put them in the very uncomfortable situation of having to buy something everytime you get a sales job. Just let your friends know what you're doing. If they're interested they'll approach you. I have my sister and brother on health plans, but they asked me for help after I knew what I was doing. I most definitely am NOT giving ANYONE my friend's or family's contact information.
Well then, I probably should be re-thinking my decision about who to go to work with.
2007 will start my career in the insurance industry. I have read through many of the different forums and it seems to me that most agents within are not captive. Any suggestions out there on how to start in the industry as a newly licensed agent. I want to consider the independent route however, I know there is much to learn so how does someone get the training and knowledge they need during their first year in the business? Also I know I need continuing education each year as required by my state to maintain my license how do you get this education while being independent?
Rpoul, contact some local indy agents and find an experienced agent to take you on. Preferably someone who is part of your community and been in the biz for 5+ yrs.
Make sure you understand how the cut will work, expenses and all that.
It may take some footwork to find a good mentor but starting out straight indy is a tuff go.
Well then, I probably should be re-thinking my decision about who to go to work with.
2007 will start my career in the insurance industry. I have read through many of the different forums and it seems to me that most agents within are not captive. Any suggestions out there on how to start in the industry as a newly licensed agent. I want to consider the independent route however, I know there is much to learn so how does someone get the training and knowledge they need during their first year in the business? Also I know I need continuing education each year as required by my state to maintain my license how do you get this education while being independent?
Learning the plans is the easy part. Generating business is what kills everyone. You need to come up with a marketing plan and it needs to including generating your own exclusive leads.
A great way to lose your friends is put them in the very uncomfortable situation of having to buy something everytime you get a sales job. Just let your friends know what you're doing. If they're interested they'll approach you. I have my sister and brother on health plans, but they asked me for help after I knew what I was doing. I most definitely am NOT giving ANYONE my friend's or family's contact information.
Re: thinking about the captive route myselfGo to Top
Originally Posted by rpoul
Is it common for a company to ask you to list all family and friends as possible clients. I am not comfortable with this.
Now let me put this straight, you shouldn't have to turn over your list to anyone as it being your list. All marketing plans have to start somewhere, and likely it's going to start in your warm market that includes your circle of influence. What is at dispute is how do you use this list?
I agree, you don't want to sell to family and friends unless they ask for help. Yet, I can't imagine them not wanting to help you in your business for the most part. So what is it about this list? Hopefully, as in most cases if you write down your family and close friends. Then you move into friends, associates and people you do business with.
Your family and friends will provide great word of mouth advertising, such as to their friends, family and business associates etc etc.. Now you're not selling family and friends but you should enlist them in your army of word of mouth advertising armed with business cards that is only if they don't mind, some will some will not, it shouldn't be an issue at all. Yet if they offer to help don't turn them down! Now that you have your family and close friends spreading the word your list should still have aleast 200 more names of casual friends and people you do business with.
For these lucky few they will be your test market as in flyers, newsletters and so on. If you mail them out literture I would place a greeting card explaining them what you are doing. If they respond, not so much too buy but to give you encouragement and maybe a long overdue "Hello", ask them for possible referrals you can mail out flyers, newsletters and so on, remember not to sell just as a base of advertising, most won't mind if they trust you! As you see with little effort you should be able to create a list of hundreds if not thousands of potential client base. That is the proper use of ones warm market!
Thank you for your input. If I know that I will get to use my list as you suggested, I would not have a problem with this. I'll have to find out a little more about how they would have me use the list.
Thank you for your input. If I know that I will get to use my list as you suggested, I would not have a problem with this. I'll have to find out a little more about how they would have me use the list.
I'm reasonably sure most Agencies and Companies of any reputation wouldn't micro manage your list. If they do, that is a sure warning sign you don't want to be there!
Does anyone know where I begin to find carriers(P/C) that will work with me as an independent agent?
After reading througn this forum it seems it is impossible to get quality carriers to allow you to sell thier product lines if you dont have a book to bring over. I have signed a no-compete with my current company and cant touch the book for 24 months. But Im making no money cause the agency pays terrible commission. I gotta get out of this situation and into the independent world as soon as possible. HELP!
It is a scary making the move from captive to independent. I am about to do the same thing myself. I am looking at the different contracts out here for the best commissons. SO IF ANYONE FEELS THEY ARE GETTING A GREAT CONTRACT FEEL FREE TO SHARE!
BECOMING INDEPENDENT
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