Software Founder Starting Truck Insurance Agency - Looking for Tips

[artkara]

Hey everyone,


I'm just getting started with my own truck insurance agency here in California. I also happen to be the founder of a transportation software company, which helps freight brokers vet carriers and fight fraud in the logistics space. Given that background, I was hoping it might give me a unique edge as I start my agency journey - but I'm hitting some roadblocks.

A few questions I'd love input on:

1. Progressive isn't appointing new agencies in CA right now (at least that's what I was told). Is there any way around this? Any workarounds or alternative paths to get appointed?
2. Do carriers like Cover Whale, Berkshire, AmTrust, Canal, NICO, Lancer, Northland, AIG, or OOIDA tend to care if you're also in the tech space or doing something unique (like fraud detection for logistics)? Or is that usually irrelevant?
3. Any tips or strategies for getting appointments when you're new? Should I start with MGAs or aggregators? Or is it better to try to go direct from the beginning?
4. Lastly, any recommendations for where and when to start focusing energy? Should I try to niche down hard (e.g., only trucking)? Or stay flexible while I build up a book?

Any insight from those who've been through this or are currently navigating the same waters would be hugely appreciated.


Thanks in advance!

 

[marindependent]

You get an award for posting a solid quesiton, that contains the state you are in, the type of insurance you are inquiring about, and information on the speciality. Bonus points for sharing your experience.

I am assuming based on your post that you have no insurance experience. If I am wrong, I do apologize.

My advice for this one is - Don't do it. Or at least Don't do it alone without someone with commercial auto experience. I am not a trucking specialist but I do sell in CA and I would never in a million years enter this market at this time with any amount of experience, let alone none. Go work with an independent broker that already focusses on this specialty and learn on their time and dime. Youll save yourself $300,000 and 5 years of your life.

All of your questions are outstanding. You are going to hit a lot more roadblocks then this [pun intended.]

Progressive isn't appointing new agencies in CA right now

Lots of carriers are not appointing, welcome to Auto in CA. Additionally tons of insurers are leaving the state and/or doing whole nonrenewals. Rates are going through the roof. Coverages offered are declining. Many folks can't even get insurance.

Should I start with MGAs or aggregators?

Yes and choose one that is willing to answer the 1000 questions you will have while starting this out.

any recommendations for where and when to start focusing energy?

I would start in another state. I would spend some more time reading posts on this forum about Commercial Auto Insurnce and the state of the CA market. Additionally go work at another agency for a year or two. Its literally a cheat sheet for starting your own agency, trust me.

Best of Luck

 

[artkara]

Thanks for your reply, marindependent - I really appreciate it. I should've mentioned earlier: my team and I actually do have some insurance experience. We've been working as agents for about 5 months at an independent agency owned by a friend, focused specifically on commercial trucking. During that time, we built some software internally that's helped us accelerate quoting, binding, and servicing policies about 10 times faster than usual.

Not trying to brag at all - just wanted to highlight our unique position. We've got a team experienced in sales, marketing, and software engineering, and we learn extremely fast. We have quickly become the highest-performing agents at our agency. We're even planning to release our internal tool publicly soon, hoping it could be useful for other insurance agencies to speed up their workflows as well.

Given all that, do you think this tech angle might help us stand out when approaching carriers for appointments?

Totally agree with you on staying humble, though. My background as an Engineer and Scientist taught me there's always way more to learn, no matter how much you think you already know.

Thanks again for your advice - I really value it!

 

[SF_Anon]

Make sure you have excellent E&O.

Make sure you are disclosing any potential conflicts of interest to every carrier you're appointed with. Make sure you're being compliant with customer data, and that you're not intermingling one business with another.

 

[Policy Monkey]

We've been working as agents for about 5 months at an independent agency owned by a friend, focused specifically on commercial trucking.

Can you buy your friends agency? Or buy into it? That would save you tons of time and money getting off the ground.

 

[m102269]

@artkara

Let me get this straight.

You've been in the insurance game for...what? Five months? And suddenly you've managed to build a proprietary quoting and binding tool that's ten times faster than what seasoned agencies and MGAs have spent decades trying to optimize?

You say your software is "10x faster" at quoting, binding, and servicing commercial trucking policies in California

So let's explore the possibilities together, shall we?


1. You're using screen scraping to automate carrier portals.
Hmm. Except that:

• Most portals use multi-step forms, JavaScript-heavy UIs, and two-factor logins.
• The second they detect automation, you get blocked.
• And worst of all, carriers absolutely prohibit scraping in their TOS.

So, unless you enjoy cease-and-desist letters and terminated appointments, that's not it.

2. You've built some revolutionary intake + document automation system.
Okay, so what..you're pre-filling ACORD forms faster than everyone else? Maybe you auto-pull DOT and MVR data and attach it to a submission? Neat. But that doesn't help when…

• Underwriters still need time to review risk.
• Some quotes require multiple follow-ups.
• And no matter how fast your forms are, carriers still run on their own damn clock.

That's not 10x faster. That's called basic modern workflow automation. Almost everyone has it.

3. You've trained some machine learning model to simulate carrier underwriting logic.
Ah. So you've reverse-engineered each carrier's appetite, pricing models, and quoting thresholds? In five months? With no carrier-side data?

4. You're comparing against the world's worst baseline.
Now we're getting somewhere.
Maybe what you're really saying is: "We built something marginally better than having a junior CSR manually type everything into 10 different portals using Internet Explorer 9."

Sure. In that case, your tool might be "10x faster" than a rock tied to a stick. But don't pretend you've reinvented the quoting process.

So… tell us.

What exactly does your software do that makes it 10x faster?

Because so far, every possible explanation is either:

• Technically impossible
• Explicitly forbidden
• Wildly exaggerated
• Or already done by every agency that owns a keyboard

You've made a big claim. Now back it up.
And don't give us the "we're engineers, we learn fast" line again. This isn't a hackathon. It's insurance.

 

[SF_Anon]

If you're interested, check any state's DIFS site to see examples of people that thought they could short cut a process, and ended up losing their license and eating a fine. Feel free to browse Michigan's site, as an example - https://www.michigan.gov/difs/legal/hearings-decisions/final-decisions

Basically, have great E&O and a really good lawyer on hand, and good luck!

 

[Allen Trent]

@artkara

Let me get this straight.

You've been in the insurance game for...what? Five months? And suddenly you've managed to build a proprietary quoting and binding tool that's ten times faster than what seasoned agencies and MGAs have spent decades trying to optimize?

You say your software is "10x faster" at quoting, binding, and servicing commercial trucking policies in California

So let's explore the possibilities together, shall we?


1. You're using screen scraping to automate carrier portals.
Hmm. Except that:

• Most portals use multi-step forms, JavaScript-heavy UIs, and two-factor logins.
• The second they detect automation, you get blocked.
• And worst of all, carriers absolutely prohibit scraping in their TOS.

So, unless you enjoy cease-and-desist letters and terminated appointments, that's not it.

2. You've built some revolutionary intake + document automation system.
Okay, so what..you're pre-filling ACORD forms faster than everyone else? Maybe you auto-pull DOT and MVR data and attach it to a submission? Neat. But that doesn't help when…

• Underwriters still need time to review risk.
• Some quotes require multiple follow-ups.
• And no matter how fast your forms are, carriers still run on their own damn clock.

That's not 10x faster. That's called basic modern workflow automation. Almost everyone has it.

3. You've trained some machine learning model to simulate carrier underwriting logic.
Ah. So you've reverse-engineered each carrier's appetite, pricing models, and quoting thresholds? In five months? With no carrier-side data?

4. You're comparing against the world's worst baseline.
Now we're getting somewhere.
Maybe what you're really saying is: "We built something marginally better than having a junior CSR manually type everything into 10 different portals using Internet Explorer 9."

Sure. In that case, your tool might be "10x faster" than a rock tied to a stick. But don't pretend you've reinvented the quoting process.

So… tell us.

What exactly does your software do that makes it 10x faster?

Because so far, every possible explanation is either:

• Technically impossible
• Explicitly forbidden
• Wildly exaggerated
• Or already done by every agency that owns a keyboard

You've made a big claim. Now back it up.
And don't give us the "we're engineers, we learn fast" line again. This isn't a hackathon. It's insurance.

Can't get elected as CA insurance commissionary with that attitude. We need ACV, so we need your best to get elected

 

[m102269]

Can't get elected as CA insurance commissionary with that attitude. We need ACV, so we need your best to get elected

@artkara will create an AI that's a 10x more efficient commissioner than I'll ever be

 

[Allen Trent]

@artkara will create an AI that's a 10x more efficient commissioner than I'll ever be

But that will cost the full price when we could get you for your depreciated actual cash value