Page 43 - The UnCaptive Agent

16 THE UNCAPTIVE AGENT

as an insurance agent? Our company has helped over
two hundred fifty entrepreneurs began their insurance
business. Not all of them have been successful. We see
that the risk of failure increases dramatically when an
insurance agent has less than three years’ experience
in the business. Insurance is complex. And even at the
relatively simple end of the business, represented by
personal insurance (as compared to middle-market
commercial lines), it takes time to learn how these
contracts work. It takes time to understand how to
manage a book of business. It takes time to learn the
best processes for handling client claims, and so on.
Three years, in our experience, is a minimum level of
experience. If you haven’t been in the business for at
least three years, I would suggest strongly that you put
off the launch of your business until you have more
experience.
In general, we find that the risk of failure decreases
as the founder approaches five years’ total experience in
the insurance industry. I recommend that you consider
somewhere between three and five years of experience
as a minimum. Obviously, everyone is different, and
you may have had the opportunity to learn the business
more rapidly than somebody else. Or, to use an insurance
term, you may have a unique way of mitigating your
own personal risk. Perhaps you have a key employee
joining you at the beginning of your business who is
experienced in insurance policies, is experienced in
business operations, or has experience that in some
way mitigates your risk. Or, perhaps you’re beginning
your business with a partner who has more experience
than you do. Unless you can give an honest answer to
yourself that you’re very knowledgeable as an insurance
agent, you should wait until you are.