How Do I Find The Right Carriers For My New Agency?

Question

I heard that the hardest part of opening your own agency is finding the right carriers for your target market... standard, non standard, preferred ect. ect. How do I find the right carriers and how difficult is it to get appointed?

Answer 1

You don't specify if your are talking about a life and health agency or a property and casualty agency. Totally different ballgames.

If it is a life agency it is very easy to be appointed by a company. Best thing to do is to work with a managing general agent (MGA). They represent lots of companies and will license you with any company they have. They also know the markets and who is the most competitive.

If it is a P&C agency it will be extremely difficult (if not impossible) to get a top tier company to consider appointing  a start up agency. They require minimum premium volume committments that for a start up agency are all but unattainable. You can look into agencies that will work with start-ups. They appoint you more or less as a subagent which gives you access to their markets in return for a cut of all your commissions.

Best wishes and good luck.

Answer 2

It depends on the state where you plan to open your agency.  It also depends on what kind of insurance you plan to sell.  Details please.

Answer 3

BAsically, it's not about you finding the "right" carriers - it's about finding anyone who will take you at all.  

For P&C, you're going to HAVE to start with non-standard carriers - try Progressive and Foremost.  They'll appoint you, you can build books with them for a few years, then if you can build a six figure book, you'll have something to roll to a standard carrier.