Florida Independents

[kent1108]

Hi all,

I am taking my licensing test on the 21st of this month and am looking for some guidence in starting an independent agency. A little about me, I have a BA in Management and will have my MBA the first week in May. Currently, I am an auto underwriter for a large insurance company located in Central Florida. I have 7 plus years of industry experience, all at the corporate level. I have contacted several MGA's and am really looking for some guidence from independents who have experience. From what I understand, obtaining direct appointments are very difficult if not impossible for a new independent. If anyone out there would be willing to talk with me and "show me some of the ropes" it would be greatly appreciated. You can reach me at gogators1108@yahoo.com.

Thank you!

[Big Dog]

You might want to seriously consider working for an independent agency and "learn the ropes" first. Starting off cold turkey is difficult enough. Your underwriting background will help. However, having the guidance of an experienced broker to teach you the needed "client facing" techniques will be of great benefit.

[kent1108]

Hi Big Dog and thank you for your reply. I have considered working for an independent and I completely understand that facing the client is very different from the corporate underwriting role. However, I do have previous sales experience so I am not new to this arena. I guess I am just looking to talk to an independent in my area who has the experience, before I jump in cold turkey. I want to do things the right way and make sure I am ready before taking that jump. Thanks again!

[ED3771316]

Find a nich that is not being worked. For example, the NFP agencies in my area are not being worked. I am hitting them hard and having a decent amount of success. Just wrapped up $48,000 in premiums over three accounts today alone.

[kent1108]

Hi Ed and thank you for your reply. Yes, I am currently looking into some "untapped" markets that are not being worked in my area. I guess my questions are along the lines of are most of the FL agents here using any type of MGA or do they have direct appointments? Do any FL agents here recommend any type of MGA over another? I am considering several, but am have been having trouble find those that offer what I am looking for (Auto, HO, Comm). From what I understand, getting direct appointments is proving difficule for new indy's. Hence the reason I am wanting to look for an MGA that can provide those markets. I have looked at the obvious one's Noodle, SA, Smart Choice, but they either don't provide competative markets or want large chunks of comissions. Any help from anyone would be greatly appreciated.

[tflood]

what part of FL are you in?

[kent1108]

Hi tflood, I am located in the central part of the state. Thanks!

[Bill]

If I were you I would register with the society of insurance counsellors in Austin Texas for their CIC (Certified Insurance Counselor designation) successfully completing all 5 courses will earn you this designation. The courses are as follows Personal Lines, Life and Health, Commercial Property, Commercial Casualty, Agency Management. This designation requires you to attend one course a year, which will satisfy your continuing education requirement. After you obtain this designation you can attend Mega seminars, and ruble seminars which deal in everything from agency automation, insuring contractors etc. At these classes you will meet the cream of the crop within your industry, Other agency principals from around the state and company reps. These are priceless contacts that can give you great advice and provide you with who is doing what and meet these people.

In my opinion, there are two types of agencies. Players and pretenders. Yes it is very hard to obtain agency appointments and even harder to get quality clients to place their business with you. I would not go to your local competitors to get information on opening an agency, they obviously are not truely interested in creating a competitor.

Good Luck and welcome to the business.

[Bill]

Commercial Lines
Try Halcyon Underwriters in Maitland FL.
You can access the following standard carriers - Travelers, CNA, Fireman’s Fund, Hartford and other standard markets
Commercial propety - Eccess and Surplus Lines carriers. these all have access to different Lloyds syndicates.
Crump Underwriters.
Atlantic Specialty Underwriters
Hull and Company

Personal Lines
Auto:
Contact Safeco (now owned by Liberty) They tend to appoint newer agencies, Progressive etc.
Home: (They are pretty much all garbage now)
Tower Hill companies in Gainsville.
Univeral Property and Casualty

[kent1108]

Bill,

Thank you so much for your the information! Exactly what I was looking for!

[MLight]

I wonder if it would be better for a start-up agency to have a contract with a large, well established independent agency to write a business thru them? You can gain valuable experience and, at the same time, build your book of business in order to get a direct appointment and be fully independent. Any experienced agency owners?

[mark4insurance]

I have done a lot of research into this and have read many contracts from the various companies. I have a good size captive agency and am looking into helping my wife set up an IA. I have been offered some direct appointments because of my agency size but am still looking at going with a "consolidater" for lack of better term. I have looked at Great Florida, Smart Choice and others but will probably be going with Crosslet out of Pinellas County. Their contract is much more friendly with no exit clauses that kill you if you ever part ways ( trust me, pay close attention to all exit clauses, non compete's etc as they can force you to stay, or put you out of business if they decide to not renew you). The terms are very fair and more importantly the contract terms are the best I have seen so far (including ability to walk away after 2 years without any penalty and without blocking your ability to do business with any carriers). They are also associated with a successful insurance school that has been around for many years which makes me feel more comfortable with their ethics in dealing with them. Many other positives as well. Contact who I have been speaking with is Richard Ficca 727-471-0818. Good luck and let me know what you think.

[init4good]

You may want to consider contacting Smart Choice in FL. They're new to the state, but have agents in about 25 or 30 other states. They can get you markets with the "big" companies for personal and commercial without having production requirements. No fees -- all done on a commission split.

[mark4insurance]

Only problem with Smart Choice is the exit provisions in section 8 if you leave or if they leave you. You cannot directly or indirectly sell through any company you used them for 2 years afterwards.

[kent1108]

Another question,

I am working towards getting my appointments now...however, one of my potential carriers has told me that I am fully approved, but can not get an appointment with them until I have an agency license from the state. So, I called the state and the state has told me that they can not issue me an agency licnese without a valid appointment?

Anyone have any advice?

Thanks!