SuperNewbie
Expert
- 36
I passed my P&C test back in December of 2003. Since then, I have been in- house sales and service for Progressive Direct and don't have a bad thing to say about the company other than if I stayed there another 20 years I'd probably be at the same job that I'm at now.
A confluence of events led me to finally decide that I am better off moving off in my own direction and I gave the company my notice and my last day is tomorrow.
I have been trolling these boards in ninja mode since I gave notice and have picked up tons of valuable information in between the hidden advertisements of clusters and software companies.
I don't really have a plan right now just a couple of options...
Option 1) Find an independent agent that will let me produce for him for a couple of years as long as I can take my book of business with me afterward. This is my favorite option, but I am not sure how viable it is. Most of the IA's around my area already have more than 1 office and the area is pretty saturated.
Option 2) Just go out on my own to begin with and try to start up on a shoestring. Maybe go with Insurance Noodle for a bit instead of an Aggregator. Maybe wait a couple of months before opening an office and just work home. Maybe set my own leads for a couple of months and service my own policies before hiring someone to do that right away. Option 2 is to limit my risk if I can't do option 1. I know I can do this, but I don't want the reason that I failed to be because I ran out of money before I made it work.
Like I have said, I have been trolling this forum and have picked up a bunch of info. One thing I have heard a lot is to specialize. I am probably more specialized in Auto insurance than guys that have been selling Auto for the last 30 years. I know pretty much everything that any of the 50 states can throw at you in Auto insurance. Besides knowing how every state handles an SR22, (some states don't have such a thing), I know what a PA state letter is, I know that you'll get a fine from NY if you don't get your FR9 from the state before your remove the car from your insurance, I also know enough to tell people to use heavy bond paper if they print their ID cards online or they won't scan at the NY DMV. I know that in Hawaii, that you need to get new insurance Id cards every 2 weeks. I know which states will give you a hard time if you are in the military and are insured in a state other than where your car is registered. I am one of the few that can talk an auto dealer through filling out an in-transit title when someone is buying a car out of state.
All that being said, I also know that you can't specialize in just Auto and need to at least bundle home to be successful. Unfortunately, although I did great on Home in the P&C test 10 years ago, I know that what was on the test and what happens in the real world are 2 different things. I am really trying to do option 1, but I'm not waiting too long before option 2. I am the type of person that will take the extra time to research what I don't know before I put something on the table for an insured, but like I learned in Auto years ago, you don't know what you don't know.
What I am looking for is advice on whether I am crazy about considering option 2. I know that my first year loss ratio is important, but I also know that a first year claim on HO is pretty unlikely. I also know that my Auto loss ratio is probably going to be low compared to most agents. I know every trick in the book as far as people trying to lie to their Auto insurance company and thanks to unlimited leads from my employer, I was selling 20 policies a day easily and a lot of that was sub-standard business. Other than the homeowners without a net thing, I also realize that it is a big risk to spend a lot of time time generating leads and servicing policies on my own instead of spending that time making more sales. I think I can do lead generation in the evening hours with everything except cold calling. I think that if servicing policies starts to become un-manageable, that's probably a sign that I can start paying a CSR.
Don't be afraid to tell me how naive I am guys, if it seems simple to me it's probably because I am I missing something. Better to hear it all now than to figure it out the hard way later. All input is appreciated.
A confluence of events led me to finally decide that I am better off moving off in my own direction and I gave the company my notice and my last day is tomorrow.
I have been trolling these boards in ninja mode since I gave notice and have picked up tons of valuable information in between the hidden advertisements of clusters and software companies.
I don't really have a plan right now just a couple of options...
Option 1) Find an independent agent that will let me produce for him for a couple of years as long as I can take my book of business with me afterward. This is my favorite option, but I am not sure how viable it is. Most of the IA's around my area already have more than 1 office and the area is pretty saturated.
Option 2) Just go out on my own to begin with and try to start up on a shoestring. Maybe go with Insurance Noodle for a bit instead of an Aggregator. Maybe wait a couple of months before opening an office and just work home. Maybe set my own leads for a couple of months and service my own policies before hiring someone to do that right away. Option 2 is to limit my risk if I can't do option 1. I know I can do this, but I don't want the reason that I failed to be because I ran out of money before I made it work.
Like I have said, I have been trolling this forum and have picked up a bunch of info. One thing I have heard a lot is to specialize. I am probably more specialized in Auto insurance than guys that have been selling Auto for the last 30 years. I know pretty much everything that any of the 50 states can throw at you in Auto insurance. Besides knowing how every state handles an SR22, (some states don't have such a thing), I know what a PA state letter is, I know that you'll get a fine from NY if you don't get your FR9 from the state before your remove the car from your insurance, I also know enough to tell people to use heavy bond paper if they print their ID cards online or they won't scan at the NY DMV. I know that in Hawaii, that you need to get new insurance Id cards every 2 weeks. I know which states will give you a hard time if you are in the military and are insured in a state other than where your car is registered. I am one of the few that can talk an auto dealer through filling out an in-transit title when someone is buying a car out of state.
All that being said, I also know that you can't specialize in just Auto and need to at least bundle home to be successful. Unfortunately, although I did great on Home in the P&C test 10 years ago, I know that what was on the test and what happens in the real world are 2 different things. I am really trying to do option 1, but I'm not waiting too long before option 2. I am the type of person that will take the extra time to research what I don't know before I put something on the table for an insured, but like I learned in Auto years ago, you don't know what you don't know.
What I am looking for is advice on whether I am crazy about considering option 2. I know that my first year loss ratio is important, but I also know that a first year claim on HO is pretty unlikely. I also know that my Auto loss ratio is probably going to be low compared to most agents. I know every trick in the book as far as people trying to lie to their Auto insurance company and thanks to unlimited leads from my employer, I was selling 20 policies a day easily and a lot of that was sub-standard business. Other than the homeowners without a net thing, I also realize that it is a big risk to spend a lot of time time generating leads and servicing policies on my own instead of spending that time making more sales. I think I can do lead generation in the evening hours with everything except cold calling. I think that if servicing policies starts to become un-manageable, that's probably a sign that I can start paying a CSR.
Don't be afraid to tell me how naive I am guys, if it seems simple to me it's probably because I am I missing something. Better to hear it all now than to figure it out the hard way later. All input is appreciated.
