Non-standard vrs. Standard Insurance

[FinancialGuy27]

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.

[mica.cooper]

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.

[Brenda H]

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.