Most young agents I know were brought in by a parent and eventually inherit. It is very difficult to open an agency, get the right appointments with companies, hire and train good employees and then solicit new business. I worked for years as a producer for an agent and was lucky enough to buy his interest and continue the operation. Even at that, it is hard work and there are plenty of ups and downs in this business, but I don’t know anything else I would rather do.
While what you say is true Agent, with the proper drive and determination you can start an agency from scratch. You do have to deal with those carriers that will allow a start-up to represent them, but once you’ve proven yourself with volume and low loss ratios, the other appointments come.
With that said, most people don’t have the drive or the willingness to live on next to nothing for the first year or two.
Dave, us agents are being challenged every day. Over the course of years, we have tried to hire young agents, give them the resources, training, provide them with markets, ex dates and a trained staff to assist them and unfortunately they didn’t work out because they didn’t want to pay the price, beat the streets and bring the business in. They wanted to be set up with a book of business, have a set income, benefits etc but they expected business to come through the door or call in. That old dog just does not hunt if an agent wants to grow.
Insurance business a good career for those willing to work hard and not just to knowledgable about sales, but know their products and services. I suggest to enhance knowledge and credability until the grey hair sets in to get professional designations. Checkout The Institutes (www.theinstutes.org, Insurance Educational Association http://www.ieatraining.com) or others.
I’ve been in the business over 32 years myself-and alot more if you count the time I spent helping my dad’s EA operation.
It takes about 3 years for any new agent to be profitable and self sustaining. All too often the young producer doesn’t have that long term mindset and all too often the agency that young producer is working for doesn’t have the expertise or resources to feed and help that young producer be successful in that time frame. It used to be that many carriers had “new agent perpetuation” programs or trained their underwriters or claims adjusters to have enough insurance knowledge that it was transferable to producing business in an agency environment. Very few carriers offer those programs now and carriers training efforts for new professional hires are poor when compared with what they did even 20 years ago.
So what happens is that many new producers either turn to the EA’s or the national or super regional brokers who are willing and financially able to make that committment, but even then,they are trained at being producers only in an environment where they have ample CSR and Account Manager resources to fall back on. While these people may become competent sales people, they are not necessarily knoweldgable at insurance as a business nor are they trained to have the skills they might need to run a small or medium sized business like an insurance agency.
The big problem with young producers is that they expect business to come to them and just want to be order takers. They have no concept of hitting the street, making the cold calls or soliciting direct to drum up business. Agencies often don’t have the same resources to train and wait for a new producer to start paying off on production. An agency owner just doesn’t have the time to baby sit producers. I tried very hard to school, train a couple of these kids and I found out they didn’t have it and would never have it.
Generally persons do not understand the 360 degrees of the business.
I was a EA for 11 years. Set up some independent contracts in my mothers name. Started to place business with different carrier other than my EA. I had a feeling at some point I needed to look out for myself. If the EA trains you on financial services to coach your customers so diversify their retirement assets. Then being exclusive P&C agent is not good for me. EA companies want it both ways, agent 1099 and expected results. I got out and started my independent agency. Within 4 years my independent agency is pulling in more compensation than 12 years with the EA. I have worked 12 hours a day for the last 48 months and no days off no days off even when ill. I have grown my agency organically, better service, better knowledge, constant x dating and agent insider leads. recontact processes. The independent insurance world is so much broader than the goofy EA agency system. I have taken advantage of Surplus lines, Commercial GL and WC. I should have left the EA years earlier. As independent the potential is really unlimited.
Great feedback … I’m a 30 y/o professional who has spent the past 10 years on the agency/brokerage side, as well as the carrier side (roughly 5 and 5).
My first 5 years out of college was managing the Marketing Department for a $10m+ revenue firm.
My goal is to connect with C/L producers/AE, focusing on M&A/Private Equity and financial institutions market. Specifically those who have a strong understanding of the hyper active PE investments.
I value speaking with any and all insurance professionals, please reach out to discuss.
KPO, what I have seen most commonly is that a young producer to be is hired by a direct writer, trained, supported until they learn how to produce and be successful. Later, if they break ranks with the direct writer, they go into an Independent Agency as a producer and eventually into ownership. The sales side of this business is only about 50% of what needs to be learned. Management skills, making payroll on employees, paying the bills and developing company relationships is very important. It takes some years of hard work to make it pay off.
The answer that comes through from all this – is that if you have equity, great. If you don’t, think again about your career choice.
Most young agents I know were brought in by a parent and eventually inherit. It is very difficult to open an agency, get the right appointments with companies, hire and train good employees and then solicit new business. I worked for years as a producer for an agent and was lucky enough to buy his interest and continue the operation. Even at that, it is hard work and there are plenty of ups and downs in this business, but I don’t know anything else I would rather do.
While what you say is true Agent, with the proper drive and determination you can start an agency from scratch. You do have to deal with those carriers that will allow a start-up to represent them, but once you’ve proven yourself with volume and low loss ratios, the other appointments come.
With that said, most people don’t have the drive or the willingness to live on next to nothing for the first year or two.
Just want to follow this. I’m an underwriter and just want to read what you agents have to say.
Dave, us agents are being challenged every day. Over the course of years, we have tried to hire young agents, give them the resources, training, provide them with markets, ex dates and a trained staff to assist them and unfortunately they didn’t work out because they didn’t want to pay the price, beat the streets and bring the business in. They wanted to be set up with a book of business, have a set income, benefits etc but they expected business to come through the door or call in. That old dog just does not hunt if an agent wants to grow.
Insurance business a good career for those willing to work hard and not just to knowledgable about sales, but know their products and services. I suggest to enhance knowledge and credability until the grey hair sets in to get professional designations. Checkout The Institutes (www.theinstutes.org, Insurance Educational Association http://www.ieatraining.com) or others.
I’ve been in the business over 32 years myself-and alot more if you count the time I spent helping my dad’s EA operation.
It takes about 3 years for any new agent to be profitable and self sustaining. All too often the young producer doesn’t have that long term mindset and all too often the agency that young producer is working for doesn’t have the expertise or resources to feed and help that young producer be successful in that time frame. It used to be that many carriers had “new agent perpetuation” programs or trained their underwriters or claims adjusters to have enough insurance knowledge that it was transferable to producing business in an agency environment. Very few carriers offer those programs now and carriers training efforts for new professional hires are poor when compared with what they did even 20 years ago.
So what happens is that many new producers either turn to the EA’s or the national or super regional brokers who are willing and financially able to make that committment, but even then,they are trained at being producers only in an environment where they have ample CSR and Account Manager resources to fall back on. While these people may become competent sales people, they are not necessarily knoweldgable at insurance as a business nor are they trained to have the skills they might need to run a small or medium sized business like an insurance agency.
The big problem with young producers is that they expect business to come to them and just want to be order takers. They have no concept of hitting the street, making the cold calls or soliciting direct to drum up business. Agencies often don’t have the same resources to train and wait for a new producer to start paying off on production. An agency owner just doesn’t have the time to baby sit producers. I tried very hard to school, train a couple of these kids and I found out they didn’t have it and would never have it.
Generally persons do not understand the 360 degrees of the business.
I was a EA for 11 years. Set up some independent contracts in my mothers name. Started to place business with different carrier other than my EA. I had a feeling at some point I needed to look out for myself. If the EA trains you on financial services to coach your customers so diversify their retirement assets. Then being exclusive P&C agent is not good for me. EA companies want it both ways, agent 1099 and expected results. I got out and started my independent agency. Within 4 years my independent agency is pulling in more compensation than 12 years with the EA. I have worked 12 hours a day for the last 48 months and no days off no days off even when ill. I have grown my agency organically, better service, better knowledge, constant x dating and agent insider leads. recontact processes. The independent insurance world is so much broader than the goofy EA agency system. I have taken advantage of Surplus lines, Commercial GL and WC. I should have left the EA years earlier. As independent the potential is really unlimited.
Insurance is like gold mining. More x dates , More prospecting more issued policies. Simple.
Great feedback … I’m a 30 y/o professional who has spent the past 10 years on the agency/brokerage side, as well as the carrier side (roughly 5 and 5).
My first 5 years out of college was managing the Marketing Department for a $10m+ revenue firm.
My goal is to connect with C/L producers/AE, focusing on M&A/Private Equity and financial institutions market. Specifically those who have a strong understanding of the hyper active PE investments.
I value speaking with any and all insurance professionals, please reach out to discuss.
KPO, what I have seen most commonly is that a young producer to be is hired by a direct writer, trained, supported until they learn how to produce and be successful. Later, if they break ranks with the direct writer, they go into an Independent Agency as a producer and eventually into ownership. The sales side of this business is only about 50% of what needs to be learned. Management skills, making payroll on employees, paying the bills and developing company relationships is very important. It takes some years of hard work to make it pay off.