Insurance Journal Forums

I'm interested in everyone's thoughts regarding the income potential and value of a non-standard (high risk) auto insurance agency versus a standard (preferred) multi-line insurance agency.

Just a little on my background, my family owns what would be labeled a non-standard auto insurance agency. I am considering getting into the business full-time and eventually taking it over. I have worked in the business in the past but since graduating from college I have been engaging in financial planning, etc. to high-net worth individuals outside of the family business. I am licensed in all lines of insurance and financial services, for what it's worth.

My thought is transitioning the business to a standard, multi-line insurance agency would increase the value of the book of business and possibly provide a great opportunity to add a financial services/financial planning division to the insurance agency in the future. However, I'm wondering if it might be even more profitable to simply expand the agency by opening/purchasing other non-standard insurance agencies throughout the state and maintaining a larger premium base.

I'm wondering if everyone thinks it's an obvious decision to move the agency towards a standard insurance clientele or if there is some justificiation for growing the non-standard business instead. Are the commissions on standard insurance that much higher where it would justify maintaining fewer clients? Any thoughts would be greatly appreciated.

Why limit yourself? My successful agent friends offer a range of products to meet all their customers needs. That is why the independent agent represents multiple companies.

I agree, why limit yourself. Not anything against the non-standard market, but from my experience, those kinds of accounts are usually one-off. If you have experience with the high end clientele, my advice would be to grow that into a successful book of business. The more business someone has with you, the harder it is to leave.