Insurance Agent Forum

[newbie_MI]

Hello gurus,

I just had interview with farmers dist manager in MI (detroit area) and looks like i can operate and wet my foot initially as I am new to insurance industry.

But I am not sure is farmers is a good place for career start. In MI AAA is most reputed one and most people use it (as far as I know).

Can someone please guide/mentor me where I have to start in MI.Do you guys susggest to start with farmers or look and interiew some other companies.

Thanks,
Raj

[defender]

All I know is that Farmers has lost significant market share over the last 5 years. They have reduced their agency force by nearly 22% and it looks like they're not stopping.

All the big boys are like this, but I know as my brother is Farmer's agent, they are not interested in writting business in Michigan and are only here because of "political" mandates.

Farmers has the highest failure rate of all the captives, so I wish you luck.

[Wtprice]

That's a little dumb to say. I live in MI, and they're constantly recruiting. Granted, I wouldn't start my P&C career there to save my life, But to say they aren't interested in writing business in MI is just dense.

[xrac]

Originally Posted by newbie_MI

Hello gurus,

I just had interview with farmers dist manager in MI (detroit area) and looks like i can operate and wet my foot initially as I am new to insurance industry.

But I am not sure is farmers is a good place for career start. In MI AAA is most reputed one and most people use it (as far as I know).

Can someone please guide/mentor me where I have to start in MI.Do you guys susggest to start with farmers or look and interiew some other companies.

Thanks,
Raj

I think you will starve! My understanding is your are in the most economically depressed part of the country with a company that is uncompetitive on their rates. What do you think?

[Wtprice]

I will agree with Xrac. Farmers is not the worlds greatest insurance company, IMHO. I would similiarly think of them as the NAA of P&C.

[djs]

Originally Posted by Wtprice

I would similiarly think of them as the NAA of P&C.

Probably a bit extreme since Farmers is not any sort of MLM program.

I'm also convinced they have not reduced their agency force by 22%, just the opposite, they have probably grown their agency force by a fair amount. I can't speak to Michigan though, that may have shrunk, but then, so has the overall population if I understand correctly.

No captive company (State Farm, Farmers, Allstate, AAA) ever has the best rates. Yet, for some reason, they insure the majority of cars on the road. Either the rates are not as bad as it sounds around here, or they offer something else that people want.

Here's what I would do.... I would run an online quote on Geico and maybe Progressive. Meet with the DM, have him run a quote for you for your coverage. Would you buy? If not, how will you sell? Even ask the district manager that very question.

Farmers is pretty lenient on people they take so they do have a pretty high failure rate. I'm not sure that it is above the industry average though, and if they screened more upfront, they would probably have fewer failures.

The problem in my neck of the woods (California) is that Farmers / State Farm / Allstate all have far to many agents. Heck, there are even to many independents around here.

Dan

[Wtprice]

You are correct, Farmers is not an MLM. I still say they are pretty low on the totem pole when it comes to P&C companies, which is what I was making the comparison too.

Starting out, I would work for an agent for a few years. Learn the business hands on, read books. P&C is different for H&L because you will hear from your customers on a regular basis. Adding vehicles, taking payments and getting PoI is just a small part of the extra work that you'll be doing.

This isn't to say Health Insurance doesn't have it's leg work, because it does, but be prepared to do more CS than selling if you can build a book.

A great book to read about building an agency with Farmers is:

Power Position Your Agency: A Guide to Insurance Agency Success by Troy Korsgaden

You can find it on Amazon, I can't post links yet.

Obviously, I'm not making any money promoting this book. I've just read it, and if you're serious about building your own agency, you should too.

[todd02]

Originally Posted by newbie_MI

Hello gurus,

I just had interview with farmers dist manager in MI (detroit area) and looks like i can operate and wet my foot initially as I am new to insurance industry.

But I am not sure is farmers is a good place for career start. In MI AAA is most reputed one and most people use it (as far as I know).

Can someone please guide/mentor me where I have to start in MI.Do you guys susggest to start with farmers or look and interiew some other companies.

Thanks,
Raj

I am New to the Farmers world. I'm in my 6 month of "career phase" and loving every minute of it. Of course I'm in Texas and I don't know what your market in MI is like. Farmers had a LOT of rate issues I hear from 2007-2009. I experienced the last part of 2009 and it was Horrific. I almost ran out of money and out of business. Since our new rates came out in Feb we have been rockin and rolling. We are more competitive than Geico and Progressive. Although minors are still a huge issue and we can't touch those households. Farmers in my opinion is the hardest company to start a book of business with but once you do the company will TAKE CARE OF YOU! Plus you can pass on your book of business to a family member which is awesome.

Point is: As long as your not lazy, make a TON of cold calls, hire a contact manager, Make sure your not shy, Get involved in the community and tell everyone what you do, plus have enough money to support you for 6 months making nothing.... I say go for it!

Good luck!