Many dream of becoming independent agency owners, with their own books of business, & multiple carrier contracts. Obtaining information on exactly how to go about doing so, is very hard to find. You may be tempted to request appointments with any and every company you can think of, in hopes that you’ll be accepted by several. Before you do this, you should sit down and consider your current goals and plans for the future of your agency.
We are going to answer all of those questions today.
It's no easy feat getting appointments with insurance companies. That's why many in the insurance industry struggle with just that. Of course, difficulty varies by company, it may be easier to get appointments with lesser know companies compared to trying to get an appointment with the likes of Progressive or Geico.
Although it may seem impossible, you can successfully get appointed with insurance companies as long as you do plenty of research and follow the necessary steps in the insurance agent appointment process. However, don’t be fooled by the misconception that becoming an independent agent is just a matter of acquiring your own office and getting carrier appointments. There are several other things for an independent agent to consider before one can even begin to seek insurance company appointments.
Make out a business plan and include as many details as possible. Insurers prefer to work with independent agents who have a clear vision of the future and can offer them some degree of predictability. Blindly sending appointment requests to dozens of companies without a clear business plan can send the message that you are shortsighted or impulsive. Since you won’t be held to the same level of standards as their exclusive agents, insurance companies need to know that you are reliable and trustworthy.
The act of pursuing appointments with insurance companies is very one-sided. As in, you will be doing all of the legwork to get an appointment. The Insurance Companies won't be reaching out to you for appointments, as you're not a captive agent, and if you're reading this blog, you don't want to be.
That is why you should have a book of business ready to go, rather than having nothing. The best way to do that is work as a captive agent, move up the ranks, then buy out the book of business. If you have a small portfolio of customers to start with, at least you’ll have something to work on growing until you receive independent insurance agent appointments from other companies.
Since approaching major carriers directly can take quite a bit of time, you may be interested in seeking other methods of obtaining carrier associations. Fortunately, there are a few ways to do this. Essentially, you have three options. Your first option is to become a franchisee. While you won’t have the freedom that comes with being a truly independent agent, it’s a a way to get your foot in the door. This requires a lump sum payment up front, usually rating between $50k-$150k depending on the reputability of the franchise you are looking at working with. The other option is to join a cluster or aggregator group where you make monthly membership payments and split your commission substantially. This option also forces you to sacrifice your bonuses, profit share, and overrides. The last option is to apply for a book ownership or producer opportunity through our agency at Majdas Touch Insurance. We do not charge monthly fees and we allow you to keep your full compensation including profit share, bonuses, and overrides. You have to adhere to our company rules, but you will have a large support network as well as access to more marketing materials and a bigger pool of carriers than a majority of aggregators, clusters, and franchises can provide.
Networking is key to finding appointments with Insurance companies. Ever been to a carrier training session or education class? Make a good impression on those carrier reps that attend, it may land you the appointment you've been looking for. Don't be afraid to tell them what you have to offer and how you are able to help them out. Even if you aren’t a good match for a particular company, keep in touch with their rep in case you fit their needs later on down the road. In the future, you may snag that agent appointment you’ve been hoping for.
You can also try looking on LinkedIn for individuals to approach for insurance agency appointments. If you have already spoken to carrier reps and recruiters, they may be able to steer you in the right direction on who can help you get appointments. Remember to be friendly and not pushy. Chances are, you aren’t the only one contacting them in hopes of getting an insurance agency appointment.
Here at Majdas Touch Insurance, we hire and train the best of the best in insurance. If you need insurance, our agents provide top of the line customer service and can find you the best deals on the market. If you're looking to become a P&C Licensed Insurance Agent visit: https://www.majdastouchinsurance.com/careers
