Page 185 - The UnCaptive Agent

158 THE UNCAPTIVE AGENT

of premium production, right now, to give an insurance
agency an appointment to sell for them. This meant
that insurance agency principals were constantly faced
with the stress of producing enough business for every
carrier they represented so they wouldn’t lose the right
to represent them. Having access to the insurance com-
pany marketplace was a tremendous problem for smaller
insurance agencies.
A result of this dilemma was that almost no new
insurance agencies were created. In fact, when my part-
ner, Ken Anderson, started our agency in 1987, the
entire local independent agency industry was shocked
that he was able to get it done. Starting a new agency
from scratch just wasn’t possible (and it speaks volumes
about Ken’s character and the esteem carriers held him in
that he was able to accomplish such an incredible feat).
Fortunately, things have changed, and in the last
six or seven years, almost twenty-five percent of the
independent agency system has been composed of new
agencies. What has made this possible is a changing atti-
tude on the part of insurance companies, who will now
appoint agents with much lower-volume commitments
than ever before, and grant them enough time to reach
those commitments on a reasonable basis. The reality is
that today you can start a new agency from scratch, and
you can get agency contracts with first-class companies
from the beginning. What used to be impossible is now
commonplace.
You can do this with a great business plan, a great
marketing plan, and the desire on the part of insurance
companies to grow. But why would you want to take
that route to the creation of your new agency? Going
alone, you need to know everything about starting and
operating your agency yourself. You will have to satisfy
the reduced volume requirements of the companies that