Page 115 - The UnCaptive Agent

88 THE UNCAPTIVE AGENT

agency (defined as $1.25 million to $2.49 million of
annual revenues) represents 16.7 carriers, or roughly ten
personal lines companies, and roughly eight commercial
lines companies. As you grow, you need more carriers.
If you have more carriers than you need, you’re wast-
ing time, which is your most precious resource. Try to
start your agency with three to four insurance carrier
contracts.

What Do Insurance Companies Want?

What are insurance companies looking for in an
insurance agency? The number one thing all insurance
companies want in a new agency appointment is a plan
for growth. The national Gross Domestic Product of
the United States grows somewhere between two and
three percent a year, typically. That really defines the
growth potential for insurance companies, especially
for commercial lines. Companies seeking to grow faster
than that rate are always looking for insurance agencies
who can deliver a solid plan for growth.
The first thing an insurance company wants to know
from you is this: if they give you an appointment, how
much business will you place with them in the first
three to five years? This will form the biggest part of
what they’re looking for. They will be very interested
in the business plan you’ve written. They will want to
see that the kinds of clients you hope to attract fit their
book of business profile. They will want to understand
if the amount of business you plan to write over the
first few years of your business fits their requirements.
If you understand their market competitiveness and
market appetite, you should be able to give them a part
of that business you plan to write. This mutual under-
standing and alignment will be one of the first factors