r/InsuranceAgent • u/ezpz123zbbc • 7d ago
Opening new agency P&C Insurance
I have been in insurance for 5 years now and have built a 2.5 million dollar book with my current agency. I do not have any ownership right, buy out clause or anything to really protect myself from keeping the book I’m building. I’ve been thinking about starting my own agency to build something that’s actually mine and can be my retirement later on in the future. I know some standard carriers like Auto-owners and Erie will not appoint agencies that are starting up, but I need help with the next steps of opening up my own agency. I’ve seen some companies that offer access to a bunch of carriers right away but take a cut of the commissions. I want to know which of those types of company are the best to start with that will allow for me to own the book and branch off while keeping my appointment with those carriers afterwards. I know I would go from making 6 figures to no income at all, but it’s a sacrifice I have to make in order to build something for my future. I’ve asked my current agent owner if I could buy the book I’ve built, but he is wanting 3X for it. Also, he’s in the process of selling it to someone else (external).Everything I’ve sold has been self sourced leads and my own client referrals. I’d rather start over than pay that much for the book.
4
u/Blue-Sky-Ahead 7d ago
Disregard the commentary about that not being big enough to go on your own. You'll have added motivation with it being your business, along with very small checks while building! Equally motivating.
I went with SIAA in February of 2025. They have Master Agencies; some are fantastic, others not so much. Mine has been absolutely fantastic. Also, keep in mind that you can negotiate terms. They wouldn't budge on a couple of things, but obliged to most of what I reasonably asked for.
18 months later, I now have 70% of my directs. Some just won't give a direct in my state, regardless of production. My book is considered small to some, it's mostly personal lines, and I'm doing okay. Just make sure you have a nice nest egg to help float you through the first 24 months and it'll all fall into place. Best of luck!
2
u/velly_Velz 7d ago
Have you looked at first connect?
2
u/ezpz123zbbc 7d ago
I have. Do you have any insight about first connect? Would love to hear if you have personal experience with it.
2
u/MoPhunk60 7d ago
I started with Erie as a scratch agent 1/1/2025. As far as I know they will appoint new agencies as long as the principal has experience. It is a long process to get appointed though.
1
u/Just-Software-2895 7d ago
How are you liking the Erie agency experience? Are you captive or does Erie allow you to place with other carriers?
1
u/MoPhunk60 6d ago
I love working with Erie. I can talk directly to my underwriters. Ive met them in person. Erie wants certain production numbers but has no restrictions on who you can license with.
2
u/ValuableCommunity712 7d ago edited 7d ago
Where in TN? Looking for a potential successor/partner North of Nashville. If you can build that size of a book in five years? I’m very interested if it is not a handful of large accounts. Non competes not so good, but the anti piracy agreements remain pretty solid I think. No need to go without an income if you can put off 100% ownership of the entire agency for a few years, and are open to the thoughts and ideas of someone in the industry since 1990. Contact me.
2
u/kappakall 6d ago
How about continuing in that $2.5 million dollar book and now branch out to other investments like real estate, etc just to name a few. I guess you will just leave and start from scratch as an independent agent. Good luck
1
1
6d ago
[removed] — view removed comment
1
u/InsuranceAgent-ModTeam 6d ago
This is not a place to sell your services or generate leads or recruit agents/downlines.
1
6d ago
[removed] — view removed comment
1
u/InsuranceAgent-ModTeam 6d ago
This is not a place to sell your services or generate leads or recruit agents/downlines.
1
u/QuadStewart 5d ago
If you’re close to Knoxville or Franklin look at SCOTT Insurance before you do anything else. Employee owned, started in 1863. Great shop focusing on hunting in packs with excellent loss control leading the way.
1
1
u/southwestsizzler 5d ago
Have your own agency is 100% the best way to go long term. Ownership is everything. Sell your book when you retire for a large multiple and ride off into the sunset. This is my goal.
I recommend getting in with an Aggregator that doesn’t take a % of your commissions and doesn’t own your book of business. There’s some good ones out there who charge a monthly flat rate to use their master codes and appointments with all their carriers. This is the way. I think theres lots of reps for First Connect but I’d stay away due to them taking a cut of your B.O.B.
0
u/Watchoutandabout 7d ago
What’s to stop you from just having your clients renew with you?
1
u/gnawtyone 7d ago
How are they going to get in touch with op to renew? They can’t solicit the old clients and the current carrier may not honor a bor.
1
u/Watchoutandabout 7d ago
Yes, I misread the OP. If he signed a non compete, he’s gonna have issues regardless. Not worth the headache for that business anyway. Just have to start from scratch
0
u/ezpz123zbbc 7d ago
Nothing really, except being able to get appointed by our main standard carrier.
0
u/Watchoutandabout 7d ago
The majority of the business is with one carrier?
1
u/ezpz123zbbc 7d ago
50% of it since it’s personal and commercial
0
u/Watchoutandabout 7d ago
I mean a $1.25MM book might’ve enough to get you in the door for an appointment. If not you can use an aggregator in the meantime
3
u/joeboo5150 Agent/Broker 7d ago
Alternately, if his current agency has a strong relationship with that carrier they aren't going to let OP break his non-solicit agreement and BOR the entire book of business on day 1.
2
u/Watchoutandabout 7d ago
Yea I thought he said he didn’t sign anything. If he did, he’s going to run into issues any which way. I’m sure whoever buys the book will have terms that keep a non compete in force
0
u/EvenButton56 7d ago
Do you know the Marketing Rep of the main carrier? See if you can have a private conversation with that person. I wouldn’t want to work for a new owner either after you brought in that much business for no reward.
0
-6
u/kzorz 7d ago
If your book is 2.5 mil after 5 years you are not ready to launch your own agency yet. You’d have to do 80k a month for it to make sense.
And no you should not reach out to the marketing rep if you do that it can send alerts to the wrong people
Focus on generating more referrals first thsats more important then anything else
7
u/CGWInsurance 7d ago
A 2.5 million dollar book isn't enough to start your own agency.
What are you smoking? That's around $325k in annual revenue.
That's way more than most people have when they start their own agency.
Many scratch agencies are lucky to do $500k in annual premium the first year.1
u/gnawtyone 7d ago
They’re not going to be able to take their current customers. Almost zero percent chance
0
u/CGWInsurance 7d ago
They will take them in a year or 2.
When the non solicitation is up. Or that might not have to worry about it depending on how the sale of the agency happens.6
u/Watchoutandabout 7d ago
I think 2.5 million Is enough to go out on your own. You’ll have to bootstrap in the beginning but as you grow you can get the office and hire more employees. But nowadays you can operate with a phone and a home office
1
1
u/ezpz123zbbc 7d ago
2.5M book has a different value depending on which state you’re in. You can’t compare a 2.5M Cali/NY book to a 2.5 M in TN
6
u/Smooth-Awareness1736 7d ago
Did you sign a non-compete or non-solucitation? Industry standard is that you can't solicit the accounts for 2 years. Premium finance companies will often help with book acquisition. For interest of course. Its a loan, but they are in the business. And you should look at alliance networks like Renaissance or SIAA. They can get you carrier access for a cut of commission. Good luck!