Ready for Independent Opportunity

[rimcountryins]

Ok so here is the quick run down:
I have been a captive agent since 2000 in a small town of 12,000 in Arizona. Book size about 450,000 in premium. Sucks for this many years I agree. I have certainly lost fair share due to such tight underwriting, etc. It is time to become an independent agency if I can swing it! I own everything it takes to run an agency already. Have location, etc. I do not have lots of money in bank. I want some real advice on how to go about going independent and best way to go about it. Is it feasible? How do I get signed up with companies and determine commissions, etc. I lose my entire book the day I leave the captive company so need to make money quickly. I have seen all over internet where you can be under an organization such as smart choice and so on but know nothing about whether this is good to do. I do not want anyone to take part of my commissions again, I want to own the book I work so hard to build, I want to have choices for prospects and clients! Please advise! All appreciated!

 

[Verbgravy]

Ok so here is the quick run down: I have been a captive agent since 2000 in a small town of 12,000 in Arizona. Book size about 450,000 in premium. Sucks for this many years I agree. I have certainly lost fair share due to such tight underwriting, etc. It is time to become an independent agency if I can swing it! I own everything it takes to run an agency already. Have location, etc. I do not have lots of money in bank. I want some real advice on how to go about going independent and best way to go about it. Is it feasible? How do I get signed up with companies and determine commissions, etc. I lose my entire book the day I leave the captive company so need to make money quickly. I have seen all over internet where you can be under an organization such as smart choice and so on but know nothing about whether this is good to do. I do not want anyone to take part of my commissions again, I want to own the book I work so hard to build, I want to have choices for prospects and clients! Please advise! All appreciated!

Hey! I'm in Tucson. I came up on the captive side myself. I've been where you're at, it's definitely feasible.

As I'm sure you've seen on here, carrier appointments are crucial and can be hard to come by. If you get a major player to give you an appointment, you'll have to make a volume commitment to them. Most likely something in the neighborhood of $100,000. That can jam you up and limit the number of carriers you can bring on. If you don't have a decent balance of carriers, you're not going to write any business.

There's nothing wrong with using a cluster or aggregator like Smart Choice, but a lot of them have drawbacks and can be cost prohibitive. Most likely the ones providing what you want are going to require an initiation fee ranging from $2500 to $10,000. I believe that Smart Choice pays a not great commission and if you decide to leave them you're barred from working with the carriers you had through them for 2 years.

I don't want everything to sound negative. Going independent was the best decision I ever made from both a personal and professional standpoint. Not to mention owning my book, making more money, and having more options to help my clients.

It's very doable. If you want to about the transition or have questions, I'll PM you my contact information.

Good luck!

 

[indienoise]

A lot of agents in my area say very good things about siaa but i understand it very much depends upon the. regional master agency so tslk to some local members to see what they say. I felt a lot like you when i left a captive agency. I didn't want to enter another contract binding my hands. I've heard locally based wholesalers may be an option but i dont know of any here. Two options I'm using are superior access and appalachian underwriters. If you can get one good appointment you could use something like that to supplement when you cant write with who you are appointed with.
Neither are iddal without binding authority, and they get a cut but there is no non compete with either of them. Both have online raters for your initial indication. Their carriers vary by state but will get you some major players you will probably need if you can't get them all yourself at first. Superior access has a larger range of carriers but honestly their service sucks. 24 hours to get a firm wuote is no joke then as long as another day before you have a binder to show for it.
Appalachian is much quicker. They are normally less than 4 business hours to get a firm quote, I've frequently had business bound same day with them. If it's truly urgent, I've gotten them to bind coverage in under an hour. Getting them to change anything on the app after the firm quote can be like pulling teeth so have your ducks in a row. Both offer e&s options, though superior access's are mostly with other mgas you could deal with on your own, honestly.
Just bear in mind that no binding authority can be a deal breaker in some cases, and neither of those will get you any middle market. They want only clean business from you.

Just something to consider. Best of luck in whatever you do.

 

[skeet282]

I just became an independent agency 6 weeks ago after being captive almost 10 years. I did not use any of the companies like smart choice or siaa. I secured the appointments myself. It did require an initial investment obviously for computers...etc but it's all very doable. I didn't have a then or now a huge bank roll to go on but I think enough to go for it. You can do it if you really want to. Feel free to contact me anytime and I will share with you what I did to get to make it happen. My name is Brian 513-582-7282

 

[AZDave]

Your not going to get the variety of carriers to write without joining a group, cluster, aggregator or whatever they want to call themselves. Giving a piece of the commission to have the ability to write the account is worth it. Commissions on the indy side are higher, so you will still net more.

You will need to be as liquid as possible. Your fixed overhead needs to be looked at and trim everywhere. You will need a cash cushion. Especially if you are not able to roll your book for a year.

Going indy you will have to work harder, but you have the experience to work smarter, so don't spin your wheels at loser accounts. In the long run, it will be the best decision you ever made.

Good Luck to you.

 

[agentinsouth]

You can get carriers w/out selling out to a captive cluster. There are several brokers to help you get started as you get your own direct appointments. meet as many territory reps as possible & you will be surprised how fast you can grow.

 

[cgreene]

I just became an independent agency 6 weeks ago after being captive almost 10 years. I did not use any of the companies like smart choice or siaa. I secured the appointments myself. It did require an initial investment obviously for computers...etc but it's all very doable. I didn't have a then or now a huge bank roll to go on but I think enough to go for it. You can do it if you really want to. Feel free to contact me anytime and I will share with you what I did to get to make it happen. My name is Brian 513-582-7282

How did you get the appointments?

 

[cgreene]

You can get carriers w/out selling out to a captive cluster. There are several brokers to help you get started as you get your own direct appointments. meet as many territory reps as possible & you will be surprised how fast you can grow.

where would you meet them?

 

[indienoise]

I am fiercely independent in the way i do business. I talked to quite a few aggregators, the only one i would do business with is insurance pro agencies.

 

[shawnmwalker]

Well you have a decision tree here. I'll lead you down one path, but it is biased.

"Begin with the end in mind"- 7 habits of Highly effective people.

Decision #1:

What end of the Ins Spectrum do you want? if you answered P&C keep reading. If ''Other" wait for the others to respond

Decision #2: Captive or Independent.

Captive:
Pro: They will teach you a lot but inevitably you will go Indy at some point in your career. Another Pro, they will subsidize your life for a time.
Con: The District Manager will push too hard or force life on you or cut your commissions or change your contract, or, ext, ext. Your Captive will take rate increases and kill your production and you will have one price point while others dissect your book one policy at a time.

Independent: :
Pro: Control expenses. Get higher commission. Higher conversion. Higher retention. All of those factors equal more money.
Con: Starting out. Getting knowledge. Your personality type could sink yourself.

Decision #3:

Once you decide Indy is for you, in the next week or 22 yrs from now. The question will be how to do it. Your options include:

Buy an agency.
Join a group.
Become a producer for an agency.
Get direct appointments. - might be limited given existing book size + # of years in business.
Get an agency that provides the back end service so you can hunt full time.

You decide which one is best for you.


Decision #4: What group should I join?

There are a lot. Consider the following. NOT ALL GROUPS ARE CREATED EQUAL! They range from good, better and best.

Any group claiming to be best of class should provide the following:
1. Transparency
2. Training and support
3. Carrier Alignment
4. and a great Contract
Give me a call, shoot me am IM. Good luck and have fun with your choices.

I have been in Insurance for 13+ years and the great thing in this industry is you can choose to never stop learning. Your learning curve is never ending. Meaning you will never get board.

HOW ON EARTH DID YOU DECIDE TO GO MET CAPTIVE!