Adding P&C to current practice

[bruce1963]

I am a financial advisor specializing in financial & investment management. Looking to add, in some way, a P&C component to diversify my overall business. Personal and small commercial. I would approach this as a risk management platform rather than strictly sales as that is how I currently do business.

Aggregators abound. I am in discussions with Iroquois. I do have a possibility of a "referral relationship" with a local insurance agency where I would receive 50% for new and renewals. However I would like to have the management/control myself if possible.

Any thoughts or ideas would be greatly appreciated.

[d's insurance store]

Let's turn this around...'I'm a successful P&C Agency owner and think there's a lot of opportunity in the Financial Services Sector. I mean, how hard is it to switch the pitch from Auto and Home insurance to Life Insurance, Variable Annunities and Mutual Funds? My clients like and trust me and one of my CSR's has nothing to do for a few hours a day, so I could train him on these products. How tough could it be? There are a lot of stupid people successfully selling these kinds of products, and my CSR is pretty smart.'

Get my point. If you're successful in the Financial Products Arena, then you can appreciate just how much effort it takes to keep up on products and trends so that you present as a 'real' advisor to your clients. So, now because tax season is coming to and end, you think that it will be a piece of cake to just start offering Auto and Home products to your portfolio? After all, we P&C retail agents are just rolling in dough, driving the latest Mercedes vehicles and spending three or four days a week on the golf course while our loyal staff runs the shop and the commission deposits just accumulate in the trust account.

Yeah, sure.

Good luck.

[mccluney]

There is much truth in what d's insurance store has to say.

[JCATS]

One thing I was taught when I was a fledgling P&C agent was that you cannot be an expert in all areas. If you are P&C you have a big job keeping up with the changes going on and trying to grow your business. If you are a financial business the same thing applies. It depends on how large you are. A 3 person agency is going to have a hard time doing it. There is an answer for both situations. Why not join forces with someone who is capable of rounding out the agency's knowledge and abilities. We are a 3 person agency. What we do with the financial stuff is refer it to a valued, knowledgeable associate. Since he knows very little about P&C, he refers that to us. It is a good combination. We are also affiliated with an enrolled agent and the same situation applies. We refer to her and she refers to us. It works well.

[Shawna64]

Hey there....Good Job thinking outside the box! You absolutely should expand those relationships. It's the relationship that has value, the rest is just commodity..truly, with the right help you can do a good job of it. IF you are in California, call PIA in San Carlos. You can maintain ownership, they do the CSR work. I think the split is 60-40 (40 to you). They are the 8th largest broker in CA (as of a couple of years agao) and have great markets. The more you learn the better you'll be at it. Hey....If you don't, a big broker that does handle everything can and will.

[Libby1958]

I agree with both arguments. If you are successful at Financial Planning, do not try to "learn" the P&C business. It takes a lifetime. Either hire a person with experience and pay them commission, purchase a small P&C shop, or partner with a referral agent.

[El Phil]

I have worked with several agencies that were strictly dealing with financial products and then successfully added P&C products to the operations. I have also seen some agencies really struggle with this approach, spend a lot of time and money on it, only to give up.
However, if the Agency Principal is able to attract and afford one or more experienced P&C CSRs, it can work, especially with personal lines. As indicated by others in this thread, it will probably not work if the Principal and key people who deal with the financial products, try to also learn and try to keep up with P&C products and the different carrier requirements.
But it can be done.
Talk to some others who have done it and succeeded. Follow their plan and make your adjustments accordingly.
If you want some additional free advice, go to insurancegroupconsulting . com and send me a note.