Starting a New Agency.

[AJB]

Hi
I am new to this forum. I worked in the insurance field for 6 years and left the industry 2 years ago because I went into another directon and today I have a business that yields me the time to expand. I have been considering auto tags & auto insurance. I worked for an insurance company and know about the aspects of the policies, marketing, computers etc. What I don't know is how to approach an insurance company as an individual in order to become an independent agent. I understand there are agency contracts. I am trying to seek advice in order to find the right information I may need prior to contacting a company. I am trying to find companies who are willing to take the risk. As far as getting started I have a business/tax ID #, Current PA P& C License, and a Notary Public Commission. I do not have any contacts within the insurance industry and no local agencies will want to help a future competition. Thanks Anthony.

 

[J.R.]

Hi
I am new to this forum. I worked in the insurance field for 6 years and left the industry 2 years ago because I went into another directon and today I have a business that yields me the time to expand. I have been considering auto tags & auto insurance. I worked for an insurance company and know about the aspects of the policies, marketing, computers etc. What I don't know is how to approach an insurance company as an individual in order to become an independent agent. I understand there are agency contracts. I am trying to seek advice in order to find the right information I may need prior to contacting a company. I am trying to find companies who are willing to take the risk. As far as getting started I have a business/tax ID #, Current PA P& C License, and a Notary Public Commission. I do not have any contacts within the insurance industry and no local agencies will want to help a future competition. Thanks Anthony.

What did you do for the 6 years?
Are you just looking to do P & C or L/H as well?
Do you want to go independent or work for an agency?

 

[AJB]

Thanks for the reply.
I worked for a large agency and became a manger/underwriter and we marketed our product, produced the policies, endorsements and renewals. Everything was generated from our office and with the help three people under me. We sold auto insurance.
I own a store inside of a busy shopping mall with over 200 stores. The mall and its network of other malls were purchased by a new company within the past few months. They are promoting the place and trying to fill some vacant stores in a strip that runs along the perimiter outside the mall. Due to a high volume of traffic, for a while, I wanted to open a tag place and the opportunity to lease additional space on this strip has presented itself. In Pa there are many auto tag places that offer a verity of services including auto insurance. In addition I also have a Pa real estate lic with Weichert realty. I am part of their real estate referral associates which can be another service I can market. (This is easy and a matter of a few phone call). For now I would like to offer auto insurance. I just don't know the proper way to approach an insurance company in order to get them to grant me the ability to sell their insurance. Thanks

 

[J.R.]

Thanks for the reply.
I worked for a large agency and became a manger/underwriter and we marketed our product, produced the policies, endorsements and renewals. Everything was generated from our office and with the help three people under me. We sold auto insurance.
I own a store inside of a busy shopping mall with over 200 stores. The mall and its network of other malls were purchased by a new company within the past few months. They are promoting the place and trying to fill some vacant stores in a strip that runs along the perimiter outside the mall. Due to a high volume of traffic, for a while, I wanted to open a tag place and the opportunity to lease additional space on this strip has presented itself. In Pa there are many auto tag places that offer a verity of services including auto insurance. In addition I also have a Pa real estate lic with Weichert realty. I am part of their real estate referral associates which can be another service I can market. (This is easy and a matter of a few phone call). For now I would like to offer auto insurance. I just don't know the proper way to approach an insurance company in order to get them to grant me the ability to sell their insurance. Thanks

I'm not entirely sure about the P & C world, but I would imagine it is similar to the l/h field. I would find out about every company that sells auto insurance in PA and contact them directly to find out how to get appointed. Just make sure you pick a catchy title. "So easy a caveman can do it!" is hilarious. I recommend an ad with Mr. T or Alf....
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[cheesebrie]

Contact Erie insurance (if the sell in your area) Check their rates in your area if they are competetive. Check https://www.superioraccess.com/saisnew/default.aspx
and insurancenoodle.com You going need E&O insurance 1/2mln Shop for one. I am looking right now myself with P&C coverage. The minimum premiums I heard about so far are $2750 from PIIA etc. I am myself RE Agent in Illinois and because of slow market I am looking to sell insurance. reinvent myself

 

[arnguy]

Erie Insurance is among the top companies writing auto insurance in PA. They are very competitive. Good luck!

 

[rmirobs]

Contact Erie insurance (if the sell in your area) Check their rates in your area if they are competetive. Check Welcome to Superior Access Insurance Services
and insurancenoodle.com You going need E&O insurance 1/2mln Shop for one. I am looking right now myself with P&C coverage. The minimum premiums I heard about so far are $2750 from PIIA etc. I am myself RE Agent in Illinois and because of slow market I am looking to sell insurance. reinvent myself

Hi,

I noticed your post while doing research on becoming an idependent Insurance agent in Illinois. I am a mortgage broker looking to get into another line of business. I have the backoffice already in place and am familiar with the licensing requirements for becoming a producer/agent.

I am interested in finding out how things look from opening up an agency point of view. Does the agency have to be licensed? Does each agent need their own E&O policy or can I buy one for the agency? Does the agency sign contracts with the agency and what is the usual split? Does the client belong to the agency or does the agent take the client with when he/she leaves? Thanks for any help you could provide.

Robert

 

[Ahnuld]

You ask excellent questions. It is obvious that you have put some thought into this and have a nice business model developing.

You have to make ends meet and make a profit for your agency. Might I suggest simply calling other agencies around your area and ask what their deal is if you joined them as an agent.

As for E&O, I would strongly suggest every individual agent in your agency provide their own E&O – to my experience, each agent must be contracted with your carriers and most carriers will not process an agent's contract without proven coverage of an E&O policy.

As for your agency, you should protect your business with broker (agency) E&O.

Independent Insurance Agents & Brokers of America (IIABA) is a nice palce to start to get some information: Independent Insurance Agents & Brokers of America

Hopefully, this is helpful.