Insurance Journal Forums

I am a semi-experienced insurance professional looking into venturing out on my own. My bread and butter is middle market to large commercial. I do also have experience in small commercial, personal and life/health as well. Im currently working for a regional firm. Im young and very motivated and my past sales performance has been great. What should i do?

1. Start on my own with no book of business? (i have some company relationships that i could leverage appointments)
2. Purchase smaller agency (what should i look to pay?)
3. Purchase existing book of business from current agency? (what should i look to pay for current book? % of revenue?)
4. Stay with my current firm and limit my overall longterm potential but embrace the security it gives
5. Any other comments or ideas?

Thanks in adanced for any useful feedback.

What is the value of your current book (revenue)?

What are the issues with your current situation?

What contractural issues are there with current situation...meaning is there already a provision in contract for purchase of book or any other issues?

I would also ask what type of managerial experience do you have? Underwriting and managing a business are two separate worlds. We recently hired someone to take over one of our offices. Great underwriter, but no managerial skills and he's having issues adapting to the workload. Having to underwrite/produce and then manage your business can be quite a challenge.

Being a great sales professional/agent does not a successful business owner make! Words to the wise, I was young and great once too. Others are right, being a great producer and being a great small business owner are way different deals all together. I don't mean to suggest you don't do it, but there are many excellent points mentioned. And by the way, don't count on 'leveraging' those carrier appointments based on relationship. It's great to talk 'what ifs' and theorize about goals you have in mind, while existing in the safety and comfort of an established company, but insurance carriers are under tremendous stress right now from all fronts and they may be a lot of things, but they're not stupid when it comes to potential revenue stream from a new producer/company. Regardless of years in the business, experience, etc, when you branch out and start something new, you're a NEW risk...period. Consider the state of the insurance industry and economy as a whole, those are factors not to be taken lightly at this time. Soft insurance market since 2005 with 2002 pricing and direct written premium levels. It's no joke out there in the marketplace (as you know), make sure you give that its due consideration. Best of luck in all your future endeavors!

If your only reason for leaving your current position is a limited long-term potential, I wouldn't worry about moving on just yet. You're young, and you currently have a great opportunity to learn. View your current position as an educational experience. Learn everything you can from everyone you can. Be a sponge that absorbs knowledge. Then, when the time is right, venture out on your own. You'll know the time is right when you aren't as hesitant and have a clearer vision for what you want to do. Right now, focus on your growth as a producer and everything else will fall into place.

Consider insurance consulting.

http://www.scottsimmonds.com/agents/bes ... ce_job.php

I say... go for it. Find a well respected owner, over age 55, with a small to medium (under $1,000,000 in revenue) independent agency. Ask for a job. Sell yourself and be up front and tell him/her about your ambitions to be an agency owner. Then, if you are hired spend some time to see how the person runs things. Watch and learn. More than likely you'll be a minor owner within a few years and a substantial owner within 10. So... Go For It!

Wayne Lunday