A Guide to P&C for New Agents and New Agencies

[LYFA]

Hi, this post has some great info. Anyone have any advice on who the best cluster in Texas is? Im talking to Farmers now, but the majority on this forum is all for independent. Just need some guidance on how to proceed. Thank you in advance.

 

[Gulfman]

I thought this was a good thread. Thanks

 

[marindependent]

Thanks for the post on the designations

 

[PhilL]

Thank you for all the info! It was very insightful. I'm hoping you might be able to offer some advice. I'm a recently licensed 220 in Central Florida...I got my license because I have a close friend who owns a very large property management firm and wanted an exclusive insurance broker/agent to send his clients to. I have a lot of potential business with my connections but no experience. I'd love to find an office to work at to get experience but can't seem to find anything close or that will fit this commercial niche. Starting my own office seems like such a daunting task trying to learn the ins and outs, how to even get started etc. Any advice?

I am also in Florida and would be glad to share some relevant thoughts with you.

 

[reinspro]

I'm (sort of) new to insurance and in the process of opening my own indy (virtual) office. I'm going to be going through a cluster (no surprises due to the challenges with getting direct appointments) specifically smart choice. I'm curious as to how everyone is handling premium payments.
1. Do you only accept initial premium payments and direct the client to the carrier directly for future payments?
2. What vendor do you use for merchant processing? Who pays the processing fee? Does the client's entire payment get deposited and the processing fee billed to you if you are paying it?

Also, any one out there who joined smart choice that would like to tell me what to expect in the first 30, 60, 90 days as a smart choice agent?

I have learned so much reading the posts here and look forward to being a member of the community

 

[Cameron Lane]

Thanks for this really helpful article. This will help all start ups like me.

 

[Rick Deckard]

Nov 26th, 2013 was the last time the thread starter checked in here. The information is still very good. I would like to see some updates from those in the field.

I am printing the first few posts so I can put them into a beginner's book I am creating so one day if I ever do branch out and try hiring someone I can refer them to good information or what I did when I entered the business.

Just terrific stuff.

 

[FLH15]

Great information on this thread but I still have to decide my next step. I have my FL 215 and agency and just passed my 220 and 120. Trying to figure best route to go getting P&C appointment so I can activate my 120 with FSLSO and self appoint. There have to be some direct appointments out there for folks willing to commit to the level of getting their 120. If you're spending the money to get your 220 & 120, you're committing to the industry. That with an updated business plan should merit a P&C company taking a chance on appointing a new 220.

 

[Rick Deckard]

Great information on this thread but I still have to decide my next step. I have my FL 215 and agency and just passed my 220 and 120. Trying to figure best route to go getting P&C appointment so I can activate my 120 with FSLSO and self appoint. There have to be some direct appointments out there for folks willing to commit to the level of getting their 120. If you're spending the money to get your 220 & 120, you're committing to the industry. That with an updated business plan should merit a P&C company taking a chance on appointing a new 220.

I am just learning about the 120 Lic, would like to know more. Perhaps there is a thread about it or maybe we need to fire up a new one.

 

[Rick Deckard]

Part 2- Becoming Your Own Boss and Starting Your Own Agency (years 3-5)



A Business Plan

Your business plan should be formally written and something you review at least 2-3 times a year to make sure you are on track. Carriers often ask to review your business plan to see if the production goals are reasonable and if the people you are looking to target fit within the target markets of the carrier. I wasn't kidding when I said that independent companies know they won't be the only one in the office, so they want to know if you can give them what they want.

Your business plan will consist of your marketing efforts and what you plan to do for expanding purposes. You really need to have several ways to market that vary in pricing so you know what is effective for you.

Some of the major marketing items people do:

1) Cold-calling (cheap and capitalizes on your free time)
------Eventually you can hire a telemarketer to do this full-time
2) Door knocking (business to business aka "B2B" or door to door for consumers aka "D2D")
3) Networking with "centers of influence" which are the people who can provide you leads as a part of their hobbies or professions. This includes lawyers, real-estate agents, mortgage brokers, homeowners associations, heads of specialized hobbies like motorcycle groups, and etc.
4) Mailing pieces of mail to people to solicit a quote. This is often expensive and the ratios of response is usually 1-2% per 1,000 though it could be more or less. The price of this can often be cost-prohibitive for newer agencies.
5) Participating in events like conventions, meetings, flea-markets, car shows, and things like that to target certain markets. Just like mailings, these can be cost-prohibitive.
6) Purchasing leads for people expressing an interest in insurance quotes. These can be expensive and also "junk leads" depending on the company, so it can be hit-and-miss, though spending some money on leads can definitely give a good payout.
7) Generate leads online using websites of yours or others. Having websites for specific markets you want to target and then trying to make them rank in the first page of google can be time-consuming but relatively inexpensive if you do it yourself. There are two schools of thought for generating leads- SEO and PPC. Do a forum search for more information on these.

There are plenty more but these are some of the basic ones people think about. Depending on your own target markets, you knowledge and experience, and who you know, you will probably have more options.

Your marketing plan will also consist of how you plan to grow. For example, mine talks about having 2 more producers and then when the book grows to a certain threshold or policy count, hire a CSR. It also talks about getting a telemarketer to maintain cold-calling. I also mention some specific growth factors for my agency and the intent to open up another shop in another state. Those are the things the carriers want to know because many agencies flail around and waste the time of the agents and the carriers.

A good and unique business plan will do nothing but help you with getting carriers. A carrier on the fence with appointing you may review this plan and decide it is worth taking the risk. Consider this something higher on your priority list because it puts into words what you want the carrier to know and express but can't do so verbally.

I feel like this section which is actually Part 2 can be applied to Independent Agents in Section 1/Part 1 under "I have a License, now what?"

This thread is an amazing gift and even if it needs some light adjustment, the bones are all there. I hate to keep hitting the same nail over and over but I come back to cold calling and door knocking. I am fully on board for Commercial Insurance, gladly write a home or auto policy for a client but other than high value home/X Dates, I would prefer to grind out a process or system for daily 9-5 focused on Commercial Insurance.

Would love for this thread to find new legs and more folks chime in with updates or things they have learned in the field. Our good man Furley has had a lot of in the field information, perhaps he can swing in here and ad to the conversation.

I know I am not where I want to be yet and I point the finger squarely at myself.