Information for a New Agency

[wow314]

Looking to open a new agency in 2012. I have 1 good company to write with and 2 non-standard. Does anyone have any good advice on what I need to focus on the first year?

I was also thinking about adding agentsecure or siaa or smartchoice. Just seems like I end up giving them a lot of the commission and dont really grow my book of business. Any thoughts on this?

Should I start out with an agency mangement system?

Anyone know if it is cheaper to get health insurance as a company or individual?

 

[Sales71]

Looking to open a new agency in 2012. I have 1 good company to write with and 2 non-standard. Does anyone have any good advice on what I need to focus on the first year?

I was also thinking about adding agentsecure or siaa or smartchoice. Just seems like I end up giving them a lot of the commission and dont really grow my book of business. Any thoughts on this?

Should I start out with an agency mangement system?

Anyone know if it is cheaper to get health insurance as a company or individual?[/QUOTE

wow that's a lot of question in one question. The thing that stood out for me from your question is that adding those group you mention will not grow your book. Non of those company will grow your book they are a way of you getting companies to write business with.

What experience do you have?

 

[Bertolinoins]

1. You must have market access to write business. Carriers in my area are taking some rate increases so you want to have as much flexibility as possible. There is no reason to be independent if you are going to handicapp yourself by only having 1/2 carriers.

2. You need to have an agency management system. It is the only way to handle the type of policy load you need to stay in business and make money. Look at QQ evolution... it is cheap and can do everything you need it to do.

3. Individual is cheaper if you can qualify. Group cannot underwrite so the rates are higher but if you have a prexisting condition it is your best option.

 

[wow314]

I have 6 years selling insurance. 2 years of group benefits and 4 years with a captive P&C company.

A lot of people think I am crazy to start an agency in today's market. What do you think?

Does anyone have advice on how to learn about commercial insurance? I have sold personal lines but dont have a clue about commercial insurance.
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How soon do I look to high other producers? If they will work for 100% commission should I hire them right away?

 

[AgencyEquity]

>A lot of people think I am crazy to start an agency in today's market. What do you think?

You have to start at some point. You would only be crazy if you do not enjoy the business or do not have a good track record closing deals. Always go with your instincts, don't let others keep you unhappy from persuing what you want to do.

>Does anyone have advice on how to learn about commercial insurance? I have sold personal lines but dont have a clue about commercial insurance.

There are a number of schools, the Hartford School of Insurance or National Alliance (there are the folks that do the CIC designation). The higher your insurance skill level is, the more you will make. So schooling is well worth it.

>How soon do I look to high other producers? If they will work for 100% commission should I hire them right away?

Get your feet wet first, also no producer really wants to work for a new start up agency unless they are partner, you really have nothing to offer them, you don't even have handle on commercial yet. Take one thing at a time.

The good news is, my Guide to Starting an Insurance Agency should be released in the next couple of weekends, I will keep you posted on this. It tells you everything from A TO Z on what is needed to start a new agency. I actually looking forward to RBA's critique of my work! I am thrilled to get his input, good or bad!

 

[apesako]

I am actually on my way to open up an agency as well (got my office space and i am working on the E &O insurance. However, i would suggest for you to work on commission based 50 50 system. Also, i do have a question of mine as well, how do i get appointed with companies...

 

[AgencyEquity]

Also, i do have a question of mine as well, how do i get appointed with companies...

Join a cluster or alliance group, this is absolutely the best way and perhaps the only way in the current environment to get a direct or sub-coded agency appointment. I have written extensively on this, please search for all posts under my user name and you should find something on this or do a key word search for "clusters." The only exception to this is if you plan on being a non-standard auto agency, then you propably won't need one of these groups. Yes being a member will be an additional expense, but it is a very good return on investment. Short of that, you may be lucky to get one or two preferred appointments, probably with a regional carrier, then you will have to place business through the MGA system, which is just not a great way to go unless you want to only do high risk commercial lines. You can also get a lot of resources on my site, including a list of these cluster groups.

 

[xrac]

Join a cluster or alliance group, this is absolutely the best way and perhaps the only way in the current environment to get a direct or sub-coded agency appointment. I have written extensively on this, please search for all posts under my user name and you should find something on this or do a key word search for "clusters." The only exception to this is if you plan on being a non-standard auto agency, then you propably won't need one of these groups. Yes being a member will be an additional expense, but it is a very good return on investment. Short of that, you may be lucky to get one or two preferred appointments, probably with a regional carrier, then you will have to place business through the MGA system, which is just not a great way to go unless you want to only do high risk commercial lines. You can also get a lot of resources on my site, including a list of these cluster groups.

Might I say that AgencyEquity has put together a great site with resources for all that you are looking for readily available. Check it out because you can hook up with Clusters and E&O through there.

AgencyEquity.com

 

[wow314]

I am actually on my way to open up an agency as well (got my office space and i am working on the E &O insurance. However, i would suggest for you to work on commission based 50 50 system. Also, i do have a question of mine as well, how do i get appointed with companies...

Apesako, What state are you in? Maybe we can help each other share ideas and things that are working.
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Anyone working with Allied? Are they any good?

 

[AgencyEquity]

My Guide to Starting an Insurance Agency will be posted on the site hopefully within before the week is over, it has nearly everything you will want to know about the start up process.