Bring back personal service

[HurricanAlley]

I'm located in SW Florida and thinking of starting up an agency. Tough to get companies so I'll look into SIAA or Accord Network for help. My Business concept is, bring back old fashioned service in the PL market. My market will be the family who has a residence with an insurance value of $500,000 - $750,000 and two/three cars. The HO3 premium will be approx. $5000 and the auto policy will be approx. $3500. At an average commission of 12.5% that will bring me gross comm. of around $320,000 annually with about 300 clients. Of course my franchise will take some off the top and will have small office expenses but this should provide me with a good living. What makes this plan different from all the other agents, I will be providing services such as, I will meet with my clients at least once a year at their home to review their coverages. I will have a certified established contractor give an estimate on the cost to replace home at first and every several years after he will up date from the data he got the first time. A vidio of all contents in house at first year and every several years there after. A free appraisal of house up front and they can use this if house needs one in the future for refinancing. They will have my office phone, cell phone and email address to communicate 24/7. Since I will only have a max of 300 clients, I'm sure I won't have two many change requests at 2:00am. So, I'm hoping I can give my prospective client a premium about the same as he or she has now and provide the services noted above. A huge difference from the couple of letters they get now for that prem. It should work, but I'm soliciting opinions. Thanks

[sanddog1]

Where do you guys come from with these grand idea's of getting rich on writing personal lines? This is the best I have ever heard, 300 hundred clients good luck....And your going to see them all each year. Why ? Sh*t with personal lines your insured will be breathing down you back every time there a $2 dollar change on their monthly bill. Dude be cool and stay school

[d's insurance store]

Good luck Hurricane, I was with a exclusive/captive company for a 16 year career and tried to do some of the 'over the top' stuff you speak of in personal lines. You may be luckier than I, but I ended up feeling that clients were more than happy to take those kinds of perks, but it in no way enhanced the relationship to where they felt any kind of loyalty.

You're talking about opening and running a 'boutique' agency where you become the 'trusted insurance advisor' to a loyal client base that will pay rates that may or may not be competitive in order for you to be the personal risk manager for them.

Personal Lines loyalty does exist, but only in the context of competitive rates. Unless you're very lucky and manage to attract 300 wealthy individuals and families that will pay the premiums you outlined with the associated commission, you're doomed to business failure and personal rejection.

I think you'd be better off with a broader approach, but hey, if I'm so smart, why aren't I rich?

[HurricanAlley]

Glad I could humor you sanddog. Since there are only a dozen of so companies writing HO in SW Florida now, the franchise or group that I join will have most of these companies and the franchise or group will also have clout to add more as they start writing business. So again I can offer a competitive price, maybe with the same company their with now, and add the additional services. I myself (slighty above average Joe) pay $8200. for my HO and Auto and receive 2 letters a year from my agent. I personally would pay a little more for the personal service but it's not out there. If I had 300 clients with a premium like mine, that would be over $300.000 of income per year. I wouldn't go after the high priced client because that would bring up high value cars and jewlery problems. I should be able to service that business myself or with a part time CSR and a good management system. Sanddog, after vacation days off and holidays there are over 230+ business days to visit and service around 300 clients, average two appointmants per day. I know several agents that write 4 to 5 million of PL business and with a good management system they generate rev. of over 90,000 per employee. These are the two letter service agencies. PS. I have 12 years experience PL and CL in this industry.

[sanddog1]

HurricanAlley, please name more then two carriers with addmitted A rating, writing HO-3 policies in FL as of today....? I have friends who will call you, for anything other then the state program. The state program

[92builder]

I think I would be a bit more comfortable if you would stop saying "franchise or group" b/c it doesn't seem to me like you have that part of it planned out. Are you even sure a "franchise or group" will take you? What makes you such a good agent? AND, why do you think a "franchise or group" would let you stop at 300? AND, don't think that you are going to schedule your clients on any of those 230+ days you're talking about. You need to learn, and soon, that those appointments will not be up to you.

I also think I saw a mention of "vacation"??? what is that?

[sanddog1]

HurricanAlley, your dreaming dude, go work for a broker and learn, 92Builder could not have put it any better.

[IOA Irvine]

Be sure to check out IOA headquartered in FL - http://www.ioausa.com
Own your book, 60% commissions, no admin hassle. GREAT group of people!

[92builder]

You know, I've been reading this post over and over for some reason, and one thing has been jumping out at me. First of all, I do think it's great that you're willing to do all this extra stuff, but you also need to learn about insurance value versus appraised value. DO NOT start offering to do appraisals b/c these two values are worlds apart. You are opening a huge pandora's box when you can tell a person that their home APPRAISES for 250K, but they're going to have to pay premium on a home that INSURES for over 300K due to replacement cost. You don't even want to have this discussion when the home insures for less than the appraisal value, either.

[kevinraz]

HurricaneAlley, I wish you the best. Go for it and please let us know how you are doing in a year or so.

Those of us who have been on the PL side of the table for a while are rather pessimistic of your chances but I'd love to see you succeed.

Maybe things are different in your area but from my experience folks don't want to think or care much about their PL insurance until a premium notice arrives or they have a claim. I've tried doing the annual reviews and had an impossible time scheduling them as they always thought I would be trying to sell them something else.

I hope you prove us wrong!

Kevin Raz

[jackweho]

You will be so busy trying to keep 300(if somehow you should get that many, which I seriously doubt) clients happy, what with certificates, renewals, cancellations, additions, subtractions, etc. that you will have no time left to prospect for additional clients. One part-time CSR:GOOD LUCK. At that rate you won't have time to eat, drink, or sleep, much less prospect.
By the way, watch out for those evil brokers who use the internet lead services-they don't have to be located in your area-they can even be out of state with a non-resident license. I think your chances of getting 300 clients are about 300 to 1.
Incidentally, I'm still trying to figure out the mathematical formula you used to convert $8,200 in premium into over $300,000 of income-please share that with me.