sheltowee86 wrote:.... I've been with Farmers 18+ years and have not experienced the growth that I would like due to a lot of factors....
The one thing that holds me back is the instability of the industry. You don't know which companies are going to declare bankruptcy yet. The broker's have had an advantage for the past decade over the captive agent. However, with pending regulation this will change. And yes regulation is going to happen. Although, whether it happens or not you want to make certain that you are with a company that is most likely to stay in business. Farmers is looking pretty good compared to other companies.
Farmers does have some issues. Such as, high turnover of agents. I also think a lot of the problems you are having is directly related to what's going on in the industry. Mainly, unfair competition with companies like AIG. And believe this, that there are more like them out there just waiting to implode.
Independent agents are struggling too. Be careful.
JKolak wrote:I like your web site Agency Equity. In fact, it is one of the sites I had marked among my favorites. Farmers didn't tell me their P&C quotas although they did share that their commissions on Homeowner's is 20% new and 14% renewal with Auto at 12.5% new and 10% renewal.
JKolak wrote:My big problem with Farmers are similar to the issues that Allstate agents seem to have now. Farmers can compete against its own agents by being a direct writer through its 21st Century Auto Insurance subsidiary and it can also sell through other agents through Foremost Insurance Group for personal insurance and Zurich NA for commerical insurance. I would rather have relationships with insurance companies that are firmly committed to the independent agency channel of distribution.
JKolak wrote:Yes, I would like to start my own agency. I am aware that P&C is the heart and soul of it. I do have a CPCU in Personal Lines and the CISR designation. I do know the theory but don't have the experience in the business.
JKolak wrote:Thank you for your helpful insight. Don't want to get over my head too quickly for sure. I wonder whether buying an existing independent agency from a retiring owner might be another possible option.
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