Producers who are committed to a career in insurance sales should be very careful about where they build their book of business. Non-compete/ non-solicitation agreements make it very difficult for you to leave and join a new company. If you leave, you have to start over because you cannot take the customers you worked so hard to win for, typically, two years. In addition, after two years, most Producers find it very hard to move the accounts because the old relationships may have dwindled and the former customer may be “fine” with their current broker relationship.
My advice: Chose a firm that has integrity, a strong reputation, resources, support, and a compensation plan that will work for you 10 years from now and beyond.
What’s the best situation for most Producers? After 30 years in the business, working at an international public company broker and two very different regional/local firms I recommend a strong local firm with one of more dominant niches. There you can find the best mix of attributes:
- Expertise to serve middle-market accounts and a reputation in their chosen niches
- A better compensation plan than the National firms
- Local decision-making
- A positive culture
- A Life/Work balance
- Opportunity to be an Entrepreneur, managing your own book of business
- The potential for ownership, if a top performer
When is the right time to reconsider whether you are with the right firm? Be diligent about this decision and assess it before your book of business gets too big and leaving becomes problematic. The best time to reassess is once you’ve learned the business, you have had some success, but your best years are still just ahead of you.
Insurance Agency Executive / Insurance M&A Leader / Captive Insurance Specialist