Insurance Journal Forums

AgencyEquity wrote:

Taylyn wrote:AgencyEquity: Could you give the reasons you believe starting an agency is a better option than buying one? I have an opportunity to buy one and since I was already planning to start one I thought it would be nice to go in with income already streaming.

Good question. If you don't have an existing agency, my recommendations is to always start an agency for several reasons. The only exceptions to this is if you work for that agency and you are buying them out or have extensive Executive experience running an agency.

Going back to the reason why it's better to start an agency, the biggest reason is that if you are investing a huge amount of money, you really need to know how the ins and out of running an Independent agency. There is a lot involved, anywhere from really knowing how an Agency Management System works to understand product knowledge and every in between. A question you might want to ask youself is do you really want to invest you own money for on the job training for something you don't know and may not even like?

One last reason that doesn't really apply to your case is that nearly all preferred Independent Agencies are sold to other Independent Agencies, so in most cases those who don't have an exisitng agency in place have a long shot of aquiring what is already a long shot even for an existing Independent Agency. Essentially there is no chance (unless it's a non-standard auto agency or an Allstate Agency) that a non-experienced start-up can acquire a quality Independent Agency.

ABMCalifornia wrote:
Great point, learning how to run an agency isn't something you can do overnight.

Louisgetz wrote:Captive/exclusive agency in Phoenix for sale and not Allstate. Contact 623-606-0451

AgencyEquity wrote:

ABMCalifornia wrote:
Great point, learning how to run an agency isn't something you can do overnight.

I think I replied to that about a year or so ago and I still hear from those who want to acquire a preferred insurance agency without experience. Here are the options:

No Insurance, no business Experience: Captive Agency Start-up, Such as Farmers or Allstate or producer for an Independent Agency (one that has a existing training program).

No Insurance Experience, but has owned a business: Acquire or Start-up a Farmers, Allstate, other captive or non-standard auto agency.

Captive Agency Experience of at least 4 years: Start an Independent Agency or acquire a smaller Independent Agency.



Producer of at least 4 years: Start an Independent Agency or acquire agency you are a producer for or smaller Independent Agency.

ABMCalifornia wrote:

AgencyEquity wrote:

Taylyn wrote:AgencyEquity: Could you give the reasons you believe starting an agency is a better option than buying one? I have an opportunity to buy one and since I was already planning to start one I thought it would be nice to go in with income already streaming.

Good question. If you don't have an existing agency, my recommendations is to always start an agency for several reasons. The only exceptions to this is if you work for that agency and you are buying them out or have extensive Executive experience running an agency.

Going back to the reason why it's better to start an agency, the biggest reason is that if you are investing a huge amount of money, you really need to know how the ins and out of running an Independent agency. There is a lot involved, anywhere from really knowing how an Agency Management System works to understand product knowledge and every in between. A question you might want to ask youself is do you really want to invest you own money for on the job training for something you don't know and may not even like?

One last reason that doesn't really apply to your case is that nearly all preferred Independent Agencies are sold to other


Independent Agencies, so in most cases those who don't have an exisitng agency in place have a long shot of aquiring what is already a long shot even for an existing Independent Agency. Essentially there is no chance (unless it's a non-standard auto agency or an Allstate Agency) that a non-experienced start-up can acquire a quality Independent Agency.

Great point, learning how to run an agency isn't something you can do overnight.

CoJones wrote:I’m currently looking to buy an insurance agency, I don’t mind dealing with sales brokers.
I would rather deal the agencies principals or someone in the agencies who has the ability to discus the matters.

I do not have a preference where the agency is located. Please only serious inquires..


Thanks

ABMCalifornia wrote:

CoJones wrote:I’m currently looking to buy an insurance agency, I don’t mind dealing with sales brokers.
I would rather deal the agencies principals or someone in the agencies who has the ability to discus the matters.

I do not have a preference where the agency is located. Please only serious inquires..


Thanks

How much experience do you have in the insurance industry? If you don't mind me asking of course...

CoJones wrote:Still Looking.. if anyone has anything...Thanks

d's insurance store wrote:I've got an idea or two. First, contact your broker who handles your E&O agency policy...they're going to know first when an agency is ready to fold and either cancel or not renew their policy. Secondly, check with your marketing reps, as they too are going to hear through the grapevine about agencies that are ready to cash out.

I hope this helps.