P&C Agency Ownership -Great Life

[todd02]

I've purchased 4 agencies in the past 5 years and acquisitions are a big part of our growth plan. And if you can purchase a good book with acceptable loss rations and merge it into an existing location it's a win/win.

We purchased an agency a couple of months ago that had an Auto-Owners appointment which was a big coup for us.

My two sons partner with me and they are my perpetuation plan. We will continue to research and purchase agencies when possible......

How are you factoring in Commission cuts carriers continue to make?

 

[LDG]

It's not a concern as only one carrier has reduced our commissions In the past 5 years and we've stopped using that carrier.

 

[onlineagent]

Curious, has anyone here ever thought of just selling insurance online?

 

[LDG]

I think about it all the time but haven't figured a way to drive quality into my agency via online and KEEP them.

My attempts to work with internet/website leads have brought insurers with problems, poor credit, claims etc.

Plus I'm not convinced that you can build a strong book of business with just online customers. What is the value added to them? They typically are looking for price and will leave you for price just as quickly as they came to you.

Just my opinion…

 

[indienoise]

I think about it all the time but haven't figured a way to drive quality into my agency via online and KEEP them.

My attempts to work with internet/website leads have brought insurers with problems, poor credit, claims etc.

Plus I'm not convinced that you can build a strong book of business with just online customers. What is the value added to them? They typically are looking for price and will leave you for price just as quickly as they came to you.

Just by opinions…

This is spot on. Similar to any other strategy, you CAN make money this way. It just has to be approached differently. This kind of business is going to be revolving door, at least in the P&C world. It absolutely will require scale, which means a very high volume required, and high overhead via technology, payroll, and SEM (in the industry with the highest cost per click).
Which is why the outfits you see making a profit in this market segment are direct writers, or agencies spun off from existing services (ie Answer Financial) or who otherwise have significant financial backing. You can't bare knuckle this kind of business the way a local IA can.

 

[LDG]

I look at my agency growth like spokes on a wheel or pieces of a pie.

We try to grow via cross sell, working with lenders, realtors and title agents, word of mouth, customer referrals, branding and even internet leads/buying leads.

I don't want to grow solely via the internet or my website but it can be a part of the overall picture.

 

[P&CGuru]

Agree with most of what the OP stated in his OP except the part about Captive vs IA. I haven't been on here in a while but I still see the same arguments being made while painting everything in large strokes of the same brush.

I'm a pure captive that works internet leads with 4 offices generating multiple 7 figure revenue and I know many Captives that make me look like a broke joke.

Could I do much better if I had an IA? maybe but making general statements about captives not being able to make really good income is just silly and untrue.

 

[nhudson199]

I live in Miami, Florida any suggestions for a new agent how to get started?