Startup P&C Agency Needs Direction

[mjgdiversified]

What you are most likely referring to are wholesalers/MGA's. They are appointed with the carriers, and they take a percentage of your commission and they are the agent listed on the policy as being the agent. You are basically given a 'referral fee' and then when you are ready to rewrite the client, you can. Your underwriting guidelines would be stricter than if you were appointed directly, so be aware that it will be difficult to place any business. But, doable. Networked Insurance Agents might also be able to help in Ct or at least refer you to a similar agency. I am not sure that any of them "take you under their wing to guide you"... they may claim to, but I havent met anyone who said they actually were there keep you from making mistakes. You are still pretty much on your own, but they can answer specific questions for you. In Ca, I was able to feel my way around without much guidance because I had 8 years in the industry writing for other brokers so, I just had to learn the ropes of being accountable to the government, IRS etc and thats enough to make you sweat, add learning to write a policy without being sued for not providing the right coverage and you are going to lose a little sleep. Commercial is probably not the best way to "enter" the industry but, everyone starts somewhere and it IS where the money is.

great advice-build the personal lines base while learning the commercial side..i AM GETTING ALL LICENSING IN NEXT 60 DAYS. I have been approached by allstate to take an office-buy small book of business with scratch opp for 43% for first year in p/c..I know it sounds enticing but its seems your under eternal control form regional managers and can easily be 100k in debt with 2 agent requirement and all operational costs.In Ct. INDY seems to be the way to go.as a startup with no book would need to align with satellite network or another indy association willing to take on new agents.your thoughts would be most appreciated.20 yrs in another buisiness-built from ground up and sold-so no drawbacks...thank you

 

[Tampa Bay Rep]

For someone looking to build a P&C agency I recommend you check out Billy William's website www.InspireANation.org

 

[Miss Teralyn]

I dont know if I'd encourage an Allstate relationship. Sounds like you realize that it might not be all its cracked up to be. Their agents are suing them for good reason, I am sure. You would be in control of NOTHING. I dont know any captive agents who would go that route if given another chance,

 

[moonlightandmargaritas]

Their agents are suing them for good reason, I am sure.

Of course agents just starting suing Allstate this week. C'mon.

 

[JBlack1971]

What state are you in?

Hello,

I am new to the industry and am in dire need of some basic direction for start-up P&C agencies. I work for a real estate company that is now expanding to sell insurance to its clients and many, many contacts. I have been assigned as the start up guy, to get new business and figure out all the ins and outs of the industry. I have my P&C license and right now we are "co-brokering" any business we get with the insurance agency that has been writing our real estate polices for some years now. We eventually would like to go off on our own, as we build more clients and have more income to support a servicing staff. My questions are:
Are there other agencies that specialize in training and support for start-ups for a commission split, where eventually the start-up will take the book when they get appointments?
If so what is the term used for these types of agencies?
What are the typical splits?

I have also seen some software programs where it looks like any licensed agent can get quotes for P&C, online through what appears to be a wholesaler. Would anyone recommend using these programs and which ones if so?

We are mainly going after commercial business through established contacts and referrals if that helps answer any questions.

Thank you for your time.

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Miss Teralyn, do you have any contacts in South Carolina .. I am currently in Columbia SC and this really sounds like what I am looking to do.

If you tell me what state you're in, I can tell you who may be able to help you. I dont know of an "agency" that does exactly what you're asking and I cant imagine how that would be mutually beneficial to do it exactly as you need them to, but I can tell you that if you start directly appointed with ONE company that the market rep for that company will help you because he/she knows they will get all your business. You need to figure out what the largest chunk of business you are likely to get is. Is it professional offices, it is professional services, is it construction or neither. You've got to figure out what KIND of insurance you are most likely to sell so that you can get the right appointments. Many insurers want you to commit to a certain dollar figure each year... say, $200k in new business, and if you dont meet it they terminate you. You dont want to buddy up with The Hartford for an appointment, and then find out that they wont write your clients line of work. I am sure you have potential clients all over the board but you need to start with a more basic plan to target the most likely future policyholders. A great idea, would be to hire an experienced agent to analyze the plan and put it together. There is something called a General Agent (sometimes called MGA's) that will let you write business through them, then take it back (its complicated) but they wont "train" you so to speak. You kind of have know what ya got going on. InsuranceNoodle is one a friend of mine used for Personal Lines, its easy to get set up and you can take your customers later on. But, you gotta be careful that you dont strew your customers out over 50 different insurers then expect that all 50 will appoint you so that you can take your customers back. With commercial, there are MGA's like Burns & Wilcox, not sure if they're in your state or not though. Abram Interstate is another, again I dont know what state you're in so I cant refer you properly. They'll write for you, but they arent going to take you by the hand and teach you as much as you'd like. Hope that helps... MGA's are the closest to what you're looking for.

 

[Miss Teralyn]

I do not know of anywhere to refer you in SC, sorry :(

 

[JBlack1971]

I am in Columbia SC .. do you have any contacts here?

I'm in CT. Thanks for insurance noodle.What are these types of online portals called? We are focusing on real estate owners, but not limiting ourselves to this category. Interested to know what the difference is between MGA and wholesalers are? I have heard that their are agencies that do this type of thing "taking you under their wing" so to speak to give some sort of commission structure and give training for business that you bring in.

 

[mjgdiversified]

Commercial is harder because the policies are more complex. If you think you will win a $100k account "just because you asked for it" you have to consider the insured's current broker with 20 years of experience being on your tail to keep that policy & he will poke holes in the one you offer until the client is scared to switch insurers. Being a start up, you wont have MANY places to quote the risk with, whereas that broker has MANY places and for a $100k account you bet he's remarketing every year, making sure he doesnt have a better price to offer the client. He WANTS to keep that $100k customer. Dont count on getting those large accounts right away, please. Your Personal Lines will be your bread and butter. Those clients will be more loyal, but yes, its less $. Just dont sell it short because it will get you by. How much experience do you personally have in writing commercial policies? They ARE complex. The differences are vast. And if you have a guy who's paying $100k for his policy and you can get a quote to come in at $90k... your policy will be lacking something. Your job is to find out if that something is a feature that's going to cost him down the line. I've seen some terrible messes come from not knowing your commercial policies. You will have to LOSE a lot of business before you are skilled enough to earn it, so please be conservative about your projected gains in the beginning. I dont know if Wholesalers are the same as MGAs but out here, its the closest in relation. I've sometimes heard them called wholesalers, but in California, how they operate doesnt sound anything like wholesaling. CT might be different and allow for different operations. Cali is pretty strict.
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Commercial is harder because the policies are more complex. If you think you will win a $100k account "just because you asked for it" you have to consider the insured's current broker with 20 years of experience being on your tail to keep that policy & he will poke holes in the one you offer until the client is scared to switch insurers. Being a start up, you wont have MANY places to quote the risk with, whereas that broker has MANY places and for a $100k account you bet he's remarketing every year, making sure he doesnt have a better price to offer the client. He WANTS to keep that $100k customer. Dont count on getting those large accounts right away, please. Your Personal Lines will be your bread and butter. Those clients will be more loyal, but yes, its less $. Just dont sell it short because it will get you by. How much experience do you personally have in writing commercial policies? They ARE complex. The differences are vast. And if you have a guy who's paying $100k for his policy and you can get a quote to come in at $90k... your policy will be lacking something. Your job is to find out if that something is a feature that's going to cost him down the line. I've seen some terrible messes come from not knowing your commercial policies. You will have to LOSE a lot of business before you are skilled enough to earn it, so please be conservative about your projected gains in the beginning. I dont know if Wholesalers are the same as MGAs but out here, its the closest in relation. I've sometimes heard them called wholesalers, but in California, how they operate doesnt sound anything like wholesaling. CT might be different and allow for different operations. Cali is pretty strict.

great advice..question..is the lincensing requirement different for commercial lines as opposed to personal lines..does it vary by state? In Ct too..ty!

 

[NCAgent]

great advice..question..is the lincensing requirement different for commercial lines as opposed to personal lines..does it vary by state? In Ct too..ty!

Some states offer a P&C license and others offer a Personal lines license. both have very similar requirements but the P&C license covers commercial (and personal) property and casualty while personal lines is only personal property and casualty.

NC has a personal lines license, it's such a waste in my opinion. That is one of those licenses that people get because they couldn't pass the P&C because the commercial stuff threw them off.

Just go get the full P&C license, it is the most talked about one here. If it covers some commercial stuff there like boiler rooms and completed service and things like that, then you are getting licensed for commercial.

 

[mjgdiversified]

thank you.Believe independent whith clusters is the way to go.work as a satellitte office to a master for reduced commissions,learn the business,then open my own..