Start-Up

broberts · Post by **broberts** » Wed May 03, 2006 11:45 am

I'm new here and no doubt this question has been asked a thousand times. Nonetheless, I have a small registered investment advisory firm and I am looking at the viablity of adding a p&c unit to the business, hopefully niched to the commercial insurance with businesses and religous institutions. Please respond to any/all of the following:

1. Is working under a MGA the route to go? What are the pitfalls?
2. What about associations such as "Agents-Helping-Agents" or "Smartchoice"? Is this a better alternative?
3. My 14,000 population town is drowing in insurance agencies, yet we would attempt to be statewide as we currently do 401K ERISA audits.

I will hire a person to head this up if we decide to proceed. I know direct appointments will be virtually impossible as we will be a start-up. If anyone can reply as to the myriad of alligators that await to bite us, please do so.

Thanks

broberts · Post by **broberts** » Thu May 04, 2006 6:02 am

Anyone?

bindscott · Post by **bindscott** » Thu May 04, 2006 10:23 pm

broberts,

If you're starting out with no existing book of business, MGA is probably the way to go. However, there are carriers that welcome new start up agencies depending on the type of businesses you will be targeting. First, try to do some market research to find your niche, then call and talk to as many markets as you can (including carriers, MGA's and associations etc..)