Starting Small With P&C

[farmerslane23]

I am looking toward the future and considering what steps I should take as I move away from the agency I work for and toward an agency of my own. I am in no hurry, but I do like to have a plan.

I really am not a strong producer, but I really enjoy the continual service aspects of P&C, and I'm handling much of that for the agency I work for which is rather busy.

I don't really have grand aspirations, or expect a lot at first. I know a lot of you recommend niche markets, but I'm not sure how to do that within P&C.

EDIT Some of my strengths and skills are:
-Strong computer/web design/social media skills
-Talent for talking on the phone
-5 years as a pro fiction and non-fiction writer

Here's my wish list:
-A move away from the big city into more rural areas
-A flexible office at first, or financial support for office if captive
-At least one CSR within two years
-A stable income within 5 years (ok with not personally making 6 figures, just want something consistent and doable)

And some questions:
1. Should I start with a niche market and branch out?
2. What kinds of niche markets exist in P&C that are not obvious?
3. Are there some captive companies with good reputations that might be a better fit than going independent?

 

[IndianaSteve]

So you say you are not a strong producer. Why is that? By far the most important aspect of having your own agency is building a sustainable customer acquisition strategy. Some agents go with relationship and referral building route, which takes a lot of networking events, shaking hands, and being out in the community. Other agents go the internet leads route, and spend a lot of money in buying leads and processing them through the sales process.

If you aren't a strong producer, you are probably more of a candidate for the leads game. This route takes a lot of capital, so you need to make sure you have plenty of money to invest if you go independent. Going captive will likely provide you with better access to capital and potentially a staff to help you process the leads.

Anyway, no matter what route you choose, you really need to make sure your sales and distribution system is effective and sustainable. Otherwise, none of it really matters.

To answer your questions

1) Starting with a niche market - doesn't matter if your sales skills and system aren't up to par. However, I believe most agents start general and go niche after they've had success and know where they went to go. This takes a good understanding of the local market and your strengths.

2) In a rural area, not much. There's low risk to high risk. If you are captive, you are subject to their pricing model. Some companies favor high risk, some low risk, and some are generally priced higher but offer better service and contracts. However, most markets only care about price and/or relationships/service. I wouldn't say there are any niche P&C markets that are not obvious. Again, effective sales process is critical.

3) There are lots of opinions on this one. It might depend on the state you're in. I know State Farm agents are seeing tough times in certain states, like Michigan and Louisiana. But generally, I would say SF has one of the better captive training and support systems. I'm not too familiar with the others though.

Hope some of this helps.

 

[shawnmwalker]

Well you have a decision tree here. I'll lead you down one path, but it is biased. If you are a farmer by nature you might want to consider that as you read below. Agents are Fierce Hunters. If you are not a Fierce hunter consider that as well as you read below.

"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.
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.