Page 1 of 1
Wholesale Insurance
Posted: Tue Jul 22, 2014 1:07 pm
by CoJones
I was thinking of starting a wholesale insurance company.. Along lines of SAAN and Deforest Group etc.
Dose anyone have any idea how to get carries to sign off on you brokering bussiness..
Thanks
Re: Wholesale Insurance
Posted: Wed Jul 23, 2014 10:56 am
by INTLXS
Are you talking about starting a wholesale brokerage operation or an E&S insurance company?
Wholesale brokers need to provide a "value added" to their retail agency clients. What do you bring to the table?
- A carrier contract they can't currently access?
- A specialized knowledge of a particular line of coverage or specific industry?
- A automated platform that makes you the "path of least resistance"?
- Relationships with retail agents who will commit to placing business with you?
- Exclusive program?
It is not a matter of "just building it and they will come".
Most new wholesale brokerage operations come about as a result of having worked in this business, built an expertise or following and then branched off to start their own firm with retail agents and carriers who were willing to follow.
Re: Wholesale Insurance
Posted: Wed Jul 23, 2014 12:32 pm
by CoJones
I was talking about wholesale brokerage operation. I fall into the categorical having worked in this business. Thanks for info
Re: Wholesale Insurance
Posted: Wed Jul 23, 2014 1:15 pm
by mightyquinn
I've started a wholesale brokerage and I know what it takes. What state are you in? How long have you been in wholesale? Do you have a niche / specialty? Will all or most of your current clients follow you? Since the big companies don't usually appoint new small shops, do you have friends at other wholesale shops with whom you can double broker to access needed markets? Do you have enough operations knowledge that you can do it yourself for 2-3 years before hiring or outsourcing? Where do you propose that your seed money will come from?
Re: Wholesale Insurance
Posted: Tue Jul 29, 2014 10:15 am
by CoJones
mightyquinn wrote:I've started a wholesale brokerage and I know what it takes. What state are you in? How long have you been in wholesale? Do you have a niche / specialty? Will all or most of your current clients follow you? Since the big companies don't usually appoint new small shops, do you have friends at other wholesale shops with whom you can double broker to access needed markets? Do you have enough operations knowledge that you can do it yourself for 2-3 years before hiring or outsourcing? Where do you propose that your seed money will come from?
I'm in sales at the present time (insurance) I plan to connect with other agencies offer markets for hard to place risks. The habiation market is something that comes to mind. I have some other thoughts as well.
As far as my current book, I would look to re-write them.
If you have time, send me a private message I would like to talk more.
Re: Wholesale Insurance
Posted: Tue Jul 29, 2014 11:40 am
by mcasconi
Having started a new Wholesale operation (MGA in CA) in the past and being on the Wholesale/E&S side of the insurance biz for 20+ years, I can share the following for what it is worth....The answers to the questions posted by “mightyquinn” are important factors in determining if you could be successful. Insurance Companies appointments are based on the volume of business (# of policies written) & amount of premium (total amount of premiums). Wholesale/Excess Surplus operations are created to fill the void for hard to place risk and are usually placed with Non-admitter carriers. If your concept to gather your agency connects together to form a new MGA/Wholesale operation, you still need the Insurance Carriers appointments to place business with. Having a connection or an Insurance Carrier that would agree to appoint a new venture operation based on documents showing the volume and premium written would be the first hurdle to accomplish, in my opinion. I would highly recommend you outsource your accounting responsibilities to a CPA firm with expertise and knowledge of the Insurance industry to lighten the load until you can afford and are ready to start an accounting department.