Potentially buying a book of business

[Michael Padgett]

Hello all, so tomorrow I have a zoom meeting with a recruiter regarding an agency opportunity and a existing book of business. I wanted to gather some questions for the recruiter and was wonder what some of you might ask if you were in my position. Thanks in advance and forgive me if I posted this in the wrong section.

 

[LostDollar]

I am not an agent.

It might help agents respond a bit better if you indicate the type of agency (ie P&C, Healthcare, etc.) that you are looking at.

This is a recent thread on buying Medicare books of business if that is of interest to you.

https://insurance-forums.com/community/threads/buying-a-medicare-book-of-business.111990/

 

[marindependent]

recruiter regarding an agency opportunity and a existing book of business.

A recruiter involved with you buying a book of business?

what some of you might ask if you were in my position

Hard to say without understanding what position or opportunity this is

My answers really have more to do with a P&C / Not another type. @LostDollar is totally corect, it really is going to depend on the type of business here.

My guess is that this 'could be' an opportunity with some sort of Captive Agency type role...Please confirm? Such as Farmers, etc.

If buying any book of business, the first thing I would ask is What the Cost for the Book relative to the Revenue is? How much are they paying to miantain that book of business? How many employees etc? Percentage of policies renewing each and every year? And there is a ton more to ask.

If its with a recruiter my sense is that there is a committment to producing business. And in this market, its really going to be important to know what are the able to actually write right now! So many markets are closed that to agree to produce anything when little is going through makes no sense.

Give us more information and Im sure you get lots of help. Best of Luck to you.

Also - What is your insurance experience?

 

[Markthebroker]

Hello all, so tomorrow I have a zoom meeting with a recruiter regarding an agency opportunity and a existing book of business. I wanted to gather some questions for the recruiter and was wonder what some of you might ask if you were in my position. Thanks in advance and forgive me if I posted this in the wrong section.

Nah, don't bother. I'm sure the recruiter will be completely honest and forthright about what a great once in a lifetime opportunity it is that you need to move on immediately before someone else does.

 

[Michael Padgett]

Thank you all for your reply’s! This is Allstate and I should have been more clear on the fact that I inquired about the opportunity. Right now In my location (Long Island) ground up new agent opportunities are on hold or just not being offered at the moment. What is available though are books of business. So I showed interest and spoke with the recruiter yesterday who then started the candidate process with me. Markthebroker I know to take what they tell me with a grain of salt until
I actually see the numbers.

 

[whatyouwantfinally]

Thank you all for your reply’s! This is Allstate and I should have been more clear on the fact that I inquired about the opportunity. Right now In my location (Long Island) ground up new agent opportunities are on hold or just not being offered at the moment. What is available though are books of business. So I showed interest and spoke with the recruiter yesterday who then started the candidate process with me. Markthebroker I know to take what they tell me with a grain of salt until
I actually see the numbers.

Don't do it. Just don't.

 

[Michael Padgett]

Don't do it. Just don't.

haha I appreciate your reply. Care to elaborate on why? Is this just referring to buying a BOB or the company in general?

 

[whatyouwantfinally]

haha I appreciate your reply. Care to elaborate on why? Is this just referring to buying a BOB or the company in general?

I think you should research it more on your own...after you cancel that meeting, so you have a better understanding of the market/situation before entertaining future meetings. Buying an Allstate book in NY right now would be a worse idea than buying a house to live in that's literally on fire. I'm not exaggerating.

 

[Markthebroker]

I think you should research it more on your own...after you cancel that meeting, so you have a better understanding of the market/situation before entertaining future meetings. Buying an Allstate book in NY right now would be a worse idea than buying a house to live in that's literally on fire. I'm not exaggerating.

From what I have been seeing here in Ca, Allstate is the worst book you could buy.

Don't go to the meeting. Don't do it. Just don't. It doesn't matter what they say, it doesn't matter how good it sounds, cancel the meeting now.

Going to that meeting would be like getting into the car with Ed Kemper because you "just want to hear what he has to say, and look at the numbers"

Look up Ed Kemper if you don't know who he is.

Frankly, in the long run, getting in the car with Ed Kemper would probably be less painful.

 

[marindependent]

I would be super careful buying into a Captive agency right now, more so t

Is this just referring to buying a BOB or the company in general?

IMO - it is likely both.

These guys are already warning you about the specific Insurer, so Ill spend a minute scaring you away from the Captive market and possible P&C in general. [Not a big NY agent guy, Im in CA.] But I do see a lot of similarities: Lots of Govt Regulation, Inflation, Risk Situation is changing, Insurers leaving, Closing down markets.

During these unusal times, I think its NUTS to tie yourself to just one insurance group. I have over 30 insurers to use and...its still not enough. If you are really going to sell, process, and present insurance - there has never been a better time to be an independent. But - going independent is Super Hard and not for most.

If you did want to seriously look at a captive agent insurer situation, Id go work for one for a long time before taking the plunge. Some guys do OK with it and get rich. But most of those folks have the "old contracts" and have a "wife across the street" who sells as an independent.

Best of Luck to you.