I am considering setting up a new Allstate agency in rural Colorado. My biggest concern is market size and its ability to handle "another" insurance company (no Allstate competition). Does anyone have advice on questions for Allstate and/or do's and don'ts from their experience?
Setting Up a New Agency
- Thread starter Ray Dr
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Going through this same process in the Mid-Atlantic area. There is very little constructive assistance available here without reading between the lines. The agents who are successful are probably working and not posting on message boards. It looks like a good opportunity. It's a lot of hard work. Personally, I am in a completely different industry currently. Selling insurance seems like a big leap for me. But the opportunity seems fantastic.
It can be a very good oppurtunity. Make sure you have a proactive plan to generate business that starts day one. Some people think just having the blue sign will make the phone ring, it will not. Realize the need for staff and have sales expectations for them. Unless your book is enormous you do not need a dedicated "service" person. All employees should give top notch service, but also need to proactively sell. I will try to check back on this thread in a while, what other questions do you have?
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Vette / The Man
Thanks for the replies. My two concerns are the 1. market size. I am waiting from more info from Allstate. Currently two State Farm agents and one each of most of the large payers in town. No Allstate representation. 2. Product offerings when dealing with rural locations. We live 10 miles out of town and found it difficult to get homeowners 3 years ago. How is Allstate when it comes to covering ranch / farm homes? I am excited about the opportunity, have been in sales for years. Just want to cover all my bases.
Thanks
Thanks for the replies. My two concerns are the 1. market size. I am waiting from more info from Allstate. Currently two State Farm agents and one each of most of the large payers in town. No Allstate representation. 2. Product offerings when dealing with rural locations. We live 10 miles out of town and found it difficult to get homeowners 3 years ago. How is Allstate when it comes to covering ranch / farm homes? I am excited about the opportunity, have been in sales for years. Just want to cover all my bases.
Thanks
Allstate doesn't sell homeowners where I am - they have another company they write for. Northlight or something like that? So that cuts the opportunity in half. Based on the competition, Allstate is under-represented here.
I live in a county of about 105,000, we have every insurance known to mankind. One Allstate agent with a satellite office covering the two major population centers of our county. Then about 6 State Farm agents, 6 Nationwide agents, 4 Erie agents and four or five long-time established independents. Then throw in the military folks on USAA and a bunch of government employees on Geico.
Crazy, but I think Allstate is under-represented. Maybe for good reason due to the lack of homeowners... Which really cuts the scratch agency opportunity in half.
I live in a county of about 105,000, we have every insurance known to mankind. One Allstate agent with a satellite office covering the two major population centers of our county. Then about 6 State Farm agents, 6 Nationwide agents, 4 Erie agents and four or five long-time established independents. Then throw in the military folks on USAA and a bunch of government employees on Geico.
Crazy, but I think Allstate is under-represented. Maybe for good reason due to the lack of homeowners... Which really cuts the scratch agency opportunity in half.
Kicker
Expert
If your in rural Colorado will they allow you to also be partially independent?
Just a question you may want to ask Allstate.
- 1,076
You may want to ask yourself why they are under represented in those area's. It could just be that they are not competitive in your area. There is a reason why Allstate has been recruiting outside of the insurance industry... you would think that if it were a great opportunity then agents would be beating down their door. You also need to ask yourself why it seems like 50+% of the agencies for sale on the open market are Allstate agencies. My suggestion is to do a lot of your own independent research.
If you are the only Allstate agent in town, it is great.
Allstate has problems with farms and ranches. The home product is designed for properties within 10 miles of a fire department and with no farm exposures. No livestock, silos, corn cribs, etc. If you go with Allstate target homes that fit in thier parameter.
When I state "plan to generate business", I mean that you should have an extensive plan in place that has multiple ways to create business if the phone never rings.
Call in business is great and relativly easy to close. But you need to imagine that your phone will never ring and ask yourself how you sell a policy that day? Create oppurtunities from buying leads, mail campaigns with follow up calls, etc. There are many things that can be done, just be sure they are proactive processes.
insurance123
Expert
- 38
Absolutely...the biggest red flag is the number of Allstate agencies for sale. I was looking to buy a book to add to my agency about a year ago and and got sick and tired of trying to filter through all the Allstate books for sale. Here in Missouri they have been struggling and I personally know a couple of independent owners that sold their Allstate books within the last couple of years to convert over to the broker side. They didn't have anything good to say about what has happened in recent years. They did however say that it was a great opportunity 10 years ago. Typical captive environment. When things are going well and rates are low, people are happy. But as soon as things go wrong you don't have any other options to turn to.
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