Best Way to Start Insurance Career? Captive or Indy?

[butteryt]

My brother and I are both in the process of getting our p&c licenses and eventually l&h in Michigan. We both have good connections to car dealers, real estate agents, mortgage loaners, and home builders for future referrals. I've been doing research and reading a lot of posts trying to figure out the best way to start off in the industry. It seems like most people are saying the best way to start out is captive for the training and to learn the business. However, I really would like to build and keep my book from the start if possible.

So, any advice on whether to start captive or work under an established independent agent?

If I start under an independent agent, I will obviously be needing support in beginning so what is a good deal for commission? 60/40 for a few months then 70/30 once I can do it on my own?

Also, I've seen that Smart Choice (and maybe other clusters) claim to offer new agents opportunities to start an agency with them without experience and offer training for them.

Would it be too difficult to start out on our own with them, or do they give enough support to a new agent just starting out?

If anyone has worked there or has started an agency from scratch without experience in the industry and could give some insight it'd be greatly appreciated!

Thanks,
Tim

 

[Guest]

My brother and I are both in the process of getting our p&c licenses and eventually l&h in Michigan. We both have good connections to car dealers, real estate agents, mortgage loaners, and home builders for future referrals. I've been doing research and reading a lot of posts trying to figure out the best way to start off in the industry. It seems like most people are saying the best way to start out is captive for the training and to learn the business. However, I really would like to build and keep my book from the start if possible.

So, any advice on whether to start captive or work under an established independent agent?

If I start under an independent agent, I will obviously be needing support in beginning so what is a good deal for commission? 60/40 for a few months then 70/30 once I can do it on my own?

Also, I've seen that Smart Choice (and maybe other clusters) claim to offer new agents opportunities to start an agency with them without experience and offer training for them.

Would it be too difficult to start out on our own with them, or do they give enough support to a new agent just starting out?

If anyone has worked there or has started an agency from scratch without experience in the industry and could give some insight it'd be greatly appreciated!

Thanks,
Tim

Its true, there are guys that started from scratch with no support, but it is extremely difficult. If you don't have a fundamental understanding of how insurance works then you are going to have an extremely hard time getting started. From getting contracts and affordable E&O to learning how to solicit clients.

There is so much behind the scenes that people don't know about when they decide they want to start their own agency. You've got to learn how to find desirable business, ensure you have a profitable book, not to mention learn the policies in and out.

Not saying it can't be done, but man, is it tough.

I started in the L&H field (which is much easier to start indy) then moved over to captive P&C. I have my own agency and couldn't imagine how much more difficult starting had been without all the training and support that I've received.

I wish you success in whatever path you choose. This forum is an excellent resource for agents to use to get help and share ideas.

Good luck!

 

[xrac]

The best way to be successful is to have a good mentor. Where ever I could find that is where I would start.

 

[go2dnxt]

My brother and I are both in the process of getting our p&c licenses and eventually l&h in Michigan. We both have good connections to car dealers, real estate agents, mortgage loaners, and home builders for future referrals. I've been doing research and reading a lot of posts trying to figure out the best way to start off in the industry. It seems like most people are saying the best way to start out is captive for the training and to learn the business. However, I really would like to build and keep my book from the start if possible.

So, any advice on whether to start captive or work under an established independent agent?

If I start under an independent agent, I will obviously be needing support in beginning so what is a good deal for commission? 60/40 for a few months then 70/30 once I can do it on my own?

Also, I've seen that Smart Choice (and maybe other clusters) claim to offer new agents opportunities to start an agency with them without experience and offer training for them.

Would it be too difficult to start out on our own with them, or do they give enough support to a new agent just starting out?

If anyone has worked there or has started an agency from scratch without experience in the industry and could give some insight it'd be greatly appreciated!

Thanks,
Tim

i am based in MI doing mostly L&H. I just got started with p&c working on cross selling products. Actually i just had one Monday.

I try to learn well the products and how it will work for the client.

Good luck.

 

[BlockO]

If anyone has worked there or has started an agency from scratch without experience in the industry and could give some insight it'd be greatly appreciated!

I didn't start an agency from scratch, but I did take over my dad's agency when he died suddenly 3 years ago. I had a little bit of L&H experience (less than two years almost two decades ago) but no P&C experience.

To say that taking over or starting an agency from scratch with no experience is difficult would be an extreme understatement! There is no training anywhere that is going to be adequate. The only way to learn is by getting your ass kicked.

Also, I started in Ohio, which is much easier as far as getting your feet wet. I didn't get into Michigan until later. Michigan is a lot tougher as far as learning insurance. Other than New York, Michigan probably ranks 2nd for having the craziest insurance laws on the books. There's a huge learning curve there, my friend!

I'm not trying to discourage you, but be aware that it's not going to be easy. Best of luck to you Butteryt.

 

[butteryt]

Thanks for the help guys appreciate it!

 

[Sales71]

Thanks for the help guys appreciate it!

I have a friend that is in MI was captive went independent. He said MI is a very hard state to get appointed and the ins laws are very difficult.

 

[charlie2170]

The best way to be successful is to have a good mentor. Where ever I could find that is where I would start.

I would like to find a mentor. I have a L&H in FL. This was my first AEP with 17 apps and I am not sure where to go from here. I would like the advice and support from a veteran that would like to share and split. Thank you.

 

[pcbinsurance]

Where are you located Charlie? There are dozens of great agents (on the Forum) from the Sunshine State that can likely help you.

 

[vistavette]

I started as a captive agent - which was a great choice at the time because its basically impossible to get any real appointments with no experience. With a captive you have time to learn how to run your business and the captive will give you some support and training. Once you've got it going its time to drop them and go independent - a captive can be lucrative but their thumb is on you all the time and you'll make more on your own. A word of caution about car dealer business: it will ruin your loss ratios and its a ton of service work. Once you've started down that road and your ratios are out of whack getting appointed with independent companies can be a bitch. Some to get started is okay but watch it close - they'll kink you on every turn. I spent 10 years in the car business and now 10 years as an agent.