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Hello, can anyone direct me into the best option for me?

I have been in real estate for 20 years, as a loan officer and a realtor. Well, it's time to get out. I consider myself a good marketer and can sell but this market is just too hard to survive in. All the marketing in the world isn't helping sell any houses today. The media keeps painting a bad picture and people are following the advice to hold off in buying.

Anyway, I would like to get my license and make a career of it as an insurance agent. I am 51 years-old so this is my last shot. I need to be pointed in the right direction. I am in California.

Should I go to State Farm or Farmers, a small local company, or should I become an independent?

Your suggestions are greatly appreciated.

Thanks.

Mark,
the insurance market isn't much better these days than the real estate market. However, if you are looking to succeed, my suggestion is to hook up with an independent brokerage firm, where you represent a multitude of companies, with various specialties.

Hey, Mark.

There is nothing wrong with the insurance business! It's a good move for you.

My advice is to talk with some independent agency owners in your area about work opportunities. Do you want to focus on a nicht market? You'd better have a strong one to jump into fast if so. Are you interested in Life and Health policies as well as the P/C or instead of the P/C? There are several companies that are looking for mature (over 40) second career individuals to market products like long-term care insurance, disability income insurance, life insurance and investments. These would provide the greatest opportunities for early career financial success. The P/C takes a bit longer to build, but the renewals are great! It's a trade-off and it depends on your personality and focus.

Anyway, try to stay away from the direct writers like Farmers, State Farm and the like. They place a huge production burden on you (both P/C and life) and you really don't own your book. Good Luck!

Swymmer

Thank you for your replies.

I will take you up on your advice and seek out independents.

We have had a huge growth in population over the last 3 years and I am confident that there is a huge opportunity within the insurance market. The real estate market is crawling along but that will eventually change and hopefully create even more opportunities.

Please feel frre to make suggestions. I appreciate it.

Mark,

I can feel your pain - I was in mortgage industry for 9 years, and made the move to the insurance industry. It was a fantastic move! I work for a large independent agency in Fla, and specialize in high net-worth personal insurance. I was able to use many of the contacts I made in the mortgage industry. I'd also recommend staying away from the direct writers as they will limit what you can do, at least they do in Fla. Look around for an agency that is commercial heavy, as their producers are built-in referral sources.

Hi Mark,

Hold onto that RE license while learning the ropes of the insurance industry. I would try to get into a large Brokerage Firm
and get a year or two of experience in commercial and personal lines. Stay away from the captive market. You would be very limited and your business is not your own. Then, in about a year or two, you can open up a Real Estate and Insurance Brokerage Office and cross sell (much of what we do in our ofice). The real estate market is always changing and will turn around. Commercial Lines is the bread and butter of the insurance industry, however, times are just as tough now in this business as it is in the real estate market (although you would never know it in San Francisco.....people are still buying).
Good luck to you in your new endeavor!

SFOInsuranceLady wrote:Hi Mark,

Hold onto that RE license while learning the ropes of the insurance industry. I would try to get into a large Brokerage Firm
and get a year or two of experience in commercial and personal lines. Stay away from the captive market. You would be very limited and your business is not your own. Then, in about a year or two, you can open up a Real Estate and Insurance Brokerage Office and cross sell (much of what we do in our ofice). The real estate market is always changing and will turn around. Commercial Lines is the bread and butter of the insurance industry, however, times are just as tough now in this business as it is in the real estate market (although you would never know it in San Francisco.....people are still buying).
Good luck to you in your new endeavor!

Hi,

Thanks very much for this comment. It help me to think about my ideals.

If you want to do more info, you also visit at:Career change
Tks again and pls keep posting.

Hello Mark,

We our an independent insurance agency specializing in auto, homeowners and business insurance. We serve El Dorado, Placer, Sacramento, San Joaquin, Yolo counties and surrounding areas.

If you are interested in working in Sacramento, California, we would be interested in talking to you. Please call us at (800) 807-6871.

Cliff Cottam Insurance Services
http://www.ccisca.com

Hey Mark,
You might also consider becoming an insurance adjuster. Your background in real estate translates well. This the career switch that I made about six years ago. It has been more stable for me than real estate sales.

Best of luck to you.
Joel
Insurance Adjuster Training

Goodluck on your career move! Hopefully you'll have better luck in selling insurance. Have you decided on what kind of insurance to focus on to - health insurance, life insurance, long term care insurance, etc?

As you consider a carreer in insurance and discuss your opportunities with agencies, it is important for you to understand the commission structure of each line of business. In general, most P&C business has a consistent commission rate between 10-20% for both new and renewal business depending on the line of business produced. As an average I would use 13%. You would need to negotiate a split of this commission with the agency / brokerage firm you work with. The life and long term care side have a much larger new business commission rate, then a very minimal renewal rate. I would be careful in going into the health side of things at this point, with national health care being "kicked around". Others may disagree with this point, as every business owner I deal with now wants to talk about health insurance and complain about the rising cost associated with health coverage. In my area, there is just not enough competition (limit options) for health coverage and the major carriers are cutting commissions, or cutting out the producer entirely for small business.

All business is difficult now. Those that work hard, are knowledgeable, and are honest and ethical do well in the long term in insurance. I will jokingly warn you, that most of us in insurance never planned to enter the field, but once we got in, we never got out. I think there is a reason; it is a good way to make a living!!! Good luck.

Mark;
My suggestion is to take the time to get your insurance licenses (P&C, L&H) before you make the final decision. As a former district manager with Farmers for 32 years, I knew statistically only 40% of the individuals that made a commitment to an insurance career actually got licensed. For this reason, I usually did not offer a small block of policies as an incentive for them to come on board. If, on the other hand, a person made the commitment to get licensed and showed a real interest in an insurance career, I would go out of my way to give them as many policies as I could to help them get started. A small block of policies early on in your career makes a big difference. It is sometimes is the determining success or failure.

It is not expensive (compared to real estate) to get fully licensed in insurance and even if you later decided it was not the career choice for you, you would still have the licenses to enhance your resume.

I retired from Farmers a few years ago and now own an insurance licensing school (www.itaamerica.com). Let us know if we can be of any assistance.

One last point, I think insurance buying customers today are really looking for choice and price whereas a few years ago they were looking for value and price. The value and price objective fit well with the captive agency systems (Farmers, State Farm, Allstate, Nationwide, etc.). In this environment, I would consider the independent agency system as a final destination but would get the training and financial support of the captives first.

Doug Harness

Hey all - the original post was from January 2008!
Mark if you're out there why not let us know what you decided to do?

Yeah, I'm wondering if he had any luck in the insurance business. Which of the advices above did he follow? That would be a good read

Stay away from the captives. Running an agency when you are new is a lot of work, I would try and get a job with a broker and build experience. if you are aggressive you will make it.