Farmers vs. Independent

[CRB]

You might want to think about staying with Farmers and then look at joining something like CAPNet to gain access to a pretty extensive list of markets for various lines of business that you can write outside of Farmers (http://capnet-1.com).

[tbaire]

I have helped many captive agents in your same situation. Give me a call and I would be happy to discuss some options with you.
Tina Baire
Regional Manager
Iroquois Southwest
760-218-3209

[mangroveman]

If you'd like to know whats involved with starting a scratch independent agency check out this link...

http://www.epicagentmarketing.com/index ... Itemid=108

Thanks,
Bob

[johnsharp]

I left Allstate and went Independent. The contract with Allstate is similar to Farmers. Farmers actually approached me after I sold my book to write under them but I went the Independent route.

Like I've said before if your bringing the business in companies will have no problem letting you be appointed with them.

I do strongly suggest going after a niche when you go the Independent route. For example in my agency we focused on Comercial Auto (Fleet) and Home Policies for new home construction. I mean we wrote other policies if they came in the door but only marketed to those two areas.

But, to answer your question the bottom line is to write policies and if your bringing in a solid number of new policies you will have no problem getting appointments. If you want to know a little more about what I did specifically shoot me an email and I'll be more than happy to give a little more detail. johnsharp@sharpmktg.com

[hmberter]

Well I am a newbie to the Farmers Insurance Group. Actually going for my first interview tomorrow. Any insight that is positive would be appreciated. I have seen the forum group disussions here from 2009 January, and it has been putting a sour taste in my mouth. I am wondering if being an IA is really dependent on a good DM and not there own efforts that should be in play!!! Let me know your advise for me?

[lonestar]

hmberter, I was a Farmers agent for over 10 years until I left in 2010. Since you asked for only positive comments, I don't have any for you. But if you want factual feedback, let us know. There are several current and ex Farmers agents out there that will be more than willing to give you the facts. Whatever you do, if you get serious about moving forward with Farmers, ask the District Manager for an advance copy of the appointment agreement(known as the contract) as well as any other addendums you would be required to sign, if Farmers offers you an appointment, ahead of time and show them to an attorney. Do not sign any contract with Farmers without having your attorney review it first. I am speaking from experience.

[hmberter]

Thanks so much for this information!

[kevinraz]

I was a Farmers agent from 93-98 and I have a few positive comments:
1 Great training. Had an excellent DM at first, Chuck Marshall. He stressed excellence, knowledge & salesmanship. Training in KC RO was also very good - useage of products, how to sell life, positioning statement, etc. Lessons learned then still serve me know even though I'm an underwriter.
2 Good personal lines products, at least at the time.
3 Flexible underwriter, again at least at the time. Example: I had an "in" at a local college. Wrote several auto accounts and got students into better tiers by writing auto & a low limit term life policy, only worked if they had clean records. Cost of FIG auto + term life policy was cheaper than competitors auto, helped me with auto & life count.
4 At least in my territory 30/60 was unbeatable. I knew that if I could get in to a house that qualified (ages 25-69, more than 1 car, owned the house, clean records & no claims) that I almost always won on price. Hardest part was finding qualified prospects, once I got in the house I felt pretty confident. Had one week where I wrote 22 new business policies on 9 NB appts, all because those 30/60 rates were great.
5 Home product was very good with lots of good endorsements. Sold a fair amount of teachers liability, sewer backup, etc.
6 Claims payment, at least at the time, was pretty good, cannot remember one complaint about claims.
7 Pretty low cost renters policy, good for 5 fire policy count. Still remember writing my first policy, was for a renter, did it on the paper form (huge, probably 17x11), took me almost 40 hours and 3 visits with the client to do it all. Thankful for an understanding first client...


The negatives overwhelmed the positives and left in 98. I don't regret the time with FIG, don't regret leaving either.

[lonestar]

hmberter, you may visit the following website. This is a site where several current and ex Farmers agents post about Farmers. I suggest you login and ask the same question there that you did here. But only do this if you "Can handle the truth" as Jack Nicholson's character said in "A Few Good Men".

http://myinsuranceworld.proboards.com/index.cgi

[hmberter]

Thanks lonestar, One more question for you? They say after you are a reserve agent first three months, you can become a career agent, and at that point you get full benefits? Confused, I thought you would be an independent contractor? How would that work .. anybody know?

[lonestar]

"Thanks lonestar, One more question for you? They say after you are a reserve agent first three months, you can become a career agent, and at that point you get full benefits? Confused, I thought you would be an independent contractor? How would that work .. anybody know? - hmberter"

hmberter,

If you write enough life insurance to "career" with Farmers, then their so-called "benefits" amounts to letting you participate in Farmers Group Health insurance plan. Note: I did not say Farmers would pay for this. You will. You only get access, but you pay the tab. When I left Farmers(known as FIG, for Farmers Insurance Group) in 2010, the group medical would have cost my family of 4 approximately $1,300 per month. Health insurance only, no dental or vision.

Also, I might point out, Farmers will pay you like an independent contractor, yet you will be held responsible for quotas like an employee.

[justthere]

I wish the Health Insurance was that low. For my wife and I, on a high deductible plan, we have the priviledge of paying $1,700 a month. That went up $700 a month on 1-1. Some of that is due to an age bracket change, but the rest is due to an aging agency force who overuses the plan.

In terms of going from reserve to career in 3 months, that is really optimistic in this marketplace. Depending on where you are located, Farmers is pretty pricey right now and it may be hard to get the autos, home and life policies you need to qualify. Then, once you are career, you have to hit the quoats every month and they own you with the new contract until you hit around 2,000 PIF. My district is way up there in production every year and, even with that, all but one of the 2012 career agents have already bit the dust. Almost all of the new agents are struggling around here (Bay area in Northern California)due to our rating structure because they do not have a base to survive off of. Think long and hard about signing that contract. That DM does not give a rat's ass about you or your future financial position. All he cares about is getting another career on board.

[sacman]

couple of other things to consider.

1) your DM has quotas for agents going career. It doesn't matter if you are successful or not.
Many, many DM's have been fired for not meeting their new hire quota. In fact, that appears to
be the main reason that DM's are let go. There is a TON of pressure on them for new hires, which is the
reason for so many unethical tactics to get you to sign up.

2) Your subsidy is a LOAN. If you receive $2500 per month it is basically a draw against your future commission.
After 6 months you've received $15,000 in subsidy. If you haven't met your quota and they let you go or decide that this isn't the business for you, you will be required to repay that amount minus any commissions made. Let's be generous and say you make $1000/month in new business commission. You walk away from your 6 months experiment with FIG owing them $9000. Sound like a good deal to you?

[hmberter]

Okay sacman,

I understand that their are two subsidery choices and I will go for the $3000 draw not the match draw, in which, you are correct and you would owe this back should you be fired. The recruiter did tell me this and suggested that the $3000.00 draw would be if you receive eg $2200.00 in commission then Farmers would pay you $800.00 toward total $3000.00 draw that you would not owe anything back. Either way, it is correct to say that I am trying to get an advanced copy of contract/assignment for my best friend attorney to review. Thanks for you all the informational. The benefits say that once you are a career agent, that Farmers pays a "portion" of the insurance. Not clear on any details for this of course!!!! - I am trying to stay optimistic with the hopes that my DM is a good mentor as well. I have heard mixed review according to District Managers. I appreciate all you can tell me!!

[lonestar]

hm, you can take what sacman says to the bank. He has been very helpful to many people, who are trying to find out the truth about the Farmers agent career. I would listen to every word he tells you.

This forum is generally good. However, you would be best served if you posted your questions in a forum that is frequented by current and recently defected FIG agents. Unlike your recruiter or your DM, these individuals do not have a financial interest in your decision to join or not join Farmers.

Coming here for advice on Farmers, is like polling all registered car owners about their experience with recent Chevrolet models. Many in the general public do not drive Chevy's, or have not driven one lately. Many people on the Insurance Journal are like that. Some people have heard of Farmers, or were an agent 10 years ago. A few left recently. A better way to ask about Chevrolet owner experience is to first find current Chevrolet owners, or car owners that have recently traded in their Chevy's for a different model, then ask your questions to this group of people.

To find the Farmers agent equivalent to Chevy owners, you may go to: http://myinsuranceworld.proboards.com/index.cgi and post your questions there. You will get much more information and feedback there than on this board. Good luck.