To be independent or not to be independent????

[BadRisk]

I am currently an associate agent for a Nationwide agent and have been trying to become a principle agent for Nationwide since May of last year. Long story short, I am absolutely amazed at the bureaucracy, ineptitude and mismanagement going on right now inside Nationwide. I honestly am a great candidate since I have about 8 years experience in insurance, 2.5 years with Nationwide, great credit, very low debt load, and a great sales record I am now considering opening an independent office (which is what I've always wanted to do) but I'm concerned that I don't have much capital. I would love any input that you can provide on: capital needed, should I go with an MGA in the beginning to gain markets, what's a good agency management software choice in the beginning, etc? Thanks in advance for sharing from your experience, pains and joy!

[loudmouth]

What sort of hurdles is Nationwide causing? I too am considering opening a Nationwide Office in East Texas. Any advice? From my short conversations with the regional sales manager the process seems very simple as long as you meet their captial requirements.

[wlunday]

Well, If you are as good as you say, I'd talk to some of the small local agencies that might have a owner with a desire to retire or cut-back. When I bought my agency it was a one-man office with about $120K in income. The guy was in business in the same place for over 30 years and wanted to retire due to health. I paid a premium price for it, but was able to retain the agency name and the seller stayed on full-time for 6 months, then part time for the rest of the first year to help in the transition. What a great move! It's nine years later and we have a staff of 5 now. Income is over $600K and we haven't finished cross-selling all the accounts yet.

My advise... buy an indy agency that has an owner looking for retirement!

Swymmer

[Alliance15]

Why anyone getting into the insurance business would want to work for a captive company is beyond me. Companies are constantly changing and Nationwide has been one of the worst so I would run away from them and find a home in a small independent agency with the option to buy. You will be glad you did!

[InsAgentSF]

I heard only good things about Allied

[BadRisk]

I'm sure Nationwide is a great company??? I think the products they offer in property and casualty are good, but pricing isn't the best right now. I am going to do some research into finding a local independent that would like to sell. Thanks for the input Wlundy? In fact, thank you all for your input. I'm also looking into Farmers. Anybody with thoughts on that company? Loudmouth...I have found Nationwide's process to become an agent anything but easy. The crap that I have put up with so far makes me REALLY hesitant to be captive to ANY company.

[gregcw]

I started out life as captive Farmers Insurance agent. We 'agreed to disagree' on some very large and major points. I have been happily Independent since 1989.

I was approached by Nationwide to be captive and roll my existing book to them but they could not offer me anything that would make it worthwhile.

I did recently appoint with Allied, Nationwides independent arm, and am satisfied working with them. I do not know if their rates and underwriting are the same. After my experience with Farmers it would take a lot for me to go captive again and it does sound like you are experiencing similar problems.

[houstonagent]

From my own experience going independent was the best thing that I could have ever done! The only hard part about the whole independent thing is getting started. It takes about 1 year to get fully going the way you want things to be and also earn the money you want to make. I have never been captive and don't think it ever ran trough my mind.

Hope you make the right move..(Independent)