Vegas / Phoenix / LA, Best Market to Sell P&C Insurance?

[Ins235Ins]

Greetings All,

I am owner of a highly productive agency in Chicago area and I will be keeping my Chicago agency for many years to come, but at some point, my wife and I want to relocate out West. The way we do business, which is a lot of investment real estate P&C deals (I sell over 300 new P&C policies per year - Apartments, Builder's Risk, Investment Properties...), I can work remotely and my clients will be none the wiser.

But I am up for the challenge of establishing a second agency in a new market. I'm still in my early 30's, so a lot of time ahead of me. I wanted to get the Forum's thoughts on the best regions in the Western USA to develop insurance business.

Los Angeles - I've never even visited but it's big money and there is a lot of real estate, are brokers called to action in LA or is it a "State Farm"/captive dominated market? Are their phat coastal wind premiums?

Arizona - I've visited many times and I love Phoenix area but it is mostly single family properties, little on apartments, and I'm nervous it will be dominated by a handful of personal lines carriers who also write all the housing rental business. Also, with great weather and low crime, I'd expect low premiums. Can anyone chime in?

Las Vegas - Up and coming metropolitan area, should see a lot of new money coming in which is attractive; maybe not as attractive a city to raise my family in as LA or AZ, but could be great for business. Are brokers commonly used in Vegas, or do captives run the show?


Suggestions and ideas welcome! My wife and I just can't take the weather here our whole lives, and we both grew up here so something different would be nice. My Chicago agency will pay our bills, but I enjoy selling and running my business and want to make sure my western USA agency succeeds as well. Thank you for any insight you all can provide!

 

[AZDave]

Arizona - Too hot, too many snakes and scorpions and everything growing has thorns. I would suggest LA.

 

[Ins235Ins]

Dave, trying to weed out the competition?

Could you elaborate on your experience with selling P&C insurance in AZ?

 

[AZDave]

I'm not much of a habitational guy, so can't answer your market opportunity question very well. It does seem most large scale apartments are CA owned conglomerates, and new luxury apartments popping up all over Phoenix. The smaller units are all older, with section 8 opportunities all over downtown. Tons of single family rentals with many investors owning multiple properties. Typical premium for $200,000 non owner occupied is around $600/year. So not much to get excited about with the property premiums.

Carriers keep scratching their heads with AZ market conditions. One would think property would be profitable here, but it is not. Our monsoon season can bring on hurricane winds and large hail. About every 10 years we get hit with a large CAT loss, and everyone gets a new roof. Between that time, you have the water damage caused by poor construction, slab leaks from settling, and regular storm damage. There is a large Del Web master planned community in N Phoenix (Anthem) that is only 10 years old and the ground has had such shifting and settling from massive rains and improper foundation prep that many homes are literally splitting in half.

There is a lot of condo unit associations, if that is your gig, but as you probably know, they will bid their renewals every year and the cert demands with the turnover and refinancing can be a full time job.

I'm a Midwestern guy, moved here from MN in 1986. Would not consider moving back. AZ is a melting pot, and rare to find anyone from here. Come on down, plenty of premium to go around! Growing like crazy.

Working remote is what I do too. I just spent two weeks in Rocky Point Mexico on the beach taking care of business.

Good Luck with your endeavors.

Dave

 

[Ins235Ins]

Thanks, Dave! Perhaps the profitability issues on property have to do with insuring dwellings for $600/yr Chicago's a great market because with its crime and weather, insurance is expensive here, and we get a lot of foreign investment into property (and they all need someone local for the insurance).

 

[mr_furly]

Greetings All,

I am owner of a highly productive agency in Chicago area and I will be keeping my Chicago agency for many years to come, but at some point, my wife and I want to relocate out West. The way we do business, which is a lot of investment real estate P&C deals (I sell over 300 new P&C policies per year - Apartments, Builder's Risk, Investment Properties...), I can work remotely and my clients will be none the wiser.

how do you work it out so that your competition doesnt know youre not in state?

Also...im a new agent thinking about targeting habitation.
Do you have any suggestions on how to get started?

As for your question...its going to come down to which city you like the most.
You can make money anywhere.
I have a really good friend whose mom made a killing in Vegas w/ commercial real estate.
So much that she moved away to an island.

 

[Rick Deckard]

Thank God you have never heard of Florida.

Lived in Los Angeles from 2000-2008, can tell you a lot. The good news is you have income to support you from Chicago but I will say that even with both my wife and I making a combined income north of 6 figures it was still woefully expensive.

I made $25k in Commissions one month in the mortgage industry for Lehamn Bros and I think I took home maybe 12-13...the state tax for the affluent plus the Fed will take 50 cents out of every dollar you make and there are lots of other ways the State of California reaches into your pockets.

Still SoCal would be much better IMO than Vegas or AZ, no offense to the great people who live there an post here.

Santa Monica is the beach part of Los Ang, that is where we loved living. Los Feliz is a nice little section a few minutes from downtown and near Griffith Park and the Observatory. You will want to live West of downtown, likely West of the 405.

What a terrific situation to be in, would get a vacation to there started. Go see Cubs-Dodgers at Chavez Ravine if you can line it up. Get out there, live life, my gawd you are 30 something and have life by the horns/balls just keep going man!

 

[Goodhands55]

I work for Allstate here in Las Vegas and I am only a producer but I do very well here. Everyone comes from all over the world to live here so unlike Michigan where I am from most people don't have that loyalty to a local agent and seem to shop around a lot more. Everyone here has some kind of hustle so networking and getting referrals is so easy. I haven't made a prospecting call in 2 years I get more referrals then I can handle because there are so many bad agencies here that people will pay more if you take care of them. I love it here once you live hear it's not like what you think it would be great schools nice restaurants and now it's going to be even more of a boom town with a new NHL and NFL team I can't wait! Vegas is where you want to be and Chicago is my 2nd favorite city!