Insurance Journal Forums

Is there a notion that a agency should diversify its line of business offered, so if there is not much sales on one side, the other side can make up the difference.

I ask this questions because I used to be a financial adviser at a local savings bank. I used to recommend to my clients to diversify their portfolio so they won't get hit hard by a downturn from a specific industry. I am sure everybody in this forum has read about diversification on various financial articles.

How does this diversification apply to a new guy in the insurance business?

BTW, my insurance agency just started about 3 months ago. I have one Administrator working for me, and everything else is myself. I also offer other services like income tax return, immigration assistance, etc. (FYI)

Any feedback will be greatly appreciated.

I think diversifying is a good long term goal however, when you are new you want to limit your focus like to only personal lines for example. You don't want to be a jack of all trades and not be really good at anything. If you concentrate only on auto and home and produce a lot of business you should manage to get a lot of good appointments. Your next step would be to hire a producer to take over the personal lines. Then you can go to your carriers and ask them to open you up for commercial. Start writing commercial and then get a producer to take over and move on to something else. Diversifying is good you just don't want to do it too soon.

Thank you

Alal,

Diversifying is a very good idea. You have a background as a financial advisor, and obtaining a life license, and perhaps a securities license could help. You may have an auto insured that is looking toward retirement, or perhaps leaving his employment for a different job... good reasons to be able to offer an IRA or annuity to him. Not to mention the IRA's you could offer while doing taxes for people.

If, while you are building the P/C book you can pick up a few life and annuity sales you can do wonders to ease the burden on your agency cash-flow issues! Then, as Porter says, you can get a personal lines account manager and start after some bigger commercial accounts!

Welcome aboard!

Swymmer

you should really focus on one thing at a time to perfect it. If you were going to have a really BIG test the next day would you study the subject and try to do your own the same night? Not saying it cant be done but theres more of a chance for you to make a mistake.Just my dime to help you stay away from E&O

Goodluck and the months to come