Dan's New Gig

[Dan Gould]

Thought I'd let the good O-folks know that I have rejoined the "commuting (and cashing a check every two weeks)" crowd - and that it looks like an outstanding opportunity.

I've joined a small (I'm the first hire) but rapidly growing insurance agency in Fort Lauderdale. I get a minimal hourly wage for the first few months while I learn on the job and work toward a Customer Service Representative license. I know its going to be tough on the hourly wage, and tough during the first couple of years as I grow my "book" but I am very excited because of a variety factors:

The owners have already expressed how happy they are with my ability to learn, ask intelligent questions, etc. They already have big plans for me such as placing CSRs under me once I get my full Agent license, and they are planning to turn the office over to me when they are ready to expand in about a year. So, I'd be seeing overrides on those policies, and they also want to move into other areas than just homeowners/casualty.

The office has more referrals than it can handle, and with me on board, one partner wants to move into admin/processing which means more of her renewals and referrals will fall to me. So while I am expected to bring in business myself, I can see that I will have lots of leads handed to me.

They have a great approach to writing policies: They strip the policy down to get the lowest cost for the customer. No padding policies for a higher commission. Convince the prospect that you have their best interests at heart, and they will stick with you and tell their friends about the agency too. And the proof of that is that we have the low quote 90% of the time, we have a 95% renewal rate, and we are swimming in referrals.

And last but not least, if you have a mortgage, you have to have insurance. And if you don't have a mortgage but live in Florida, you're an idiot if you don't have insurance. Its truly a recession-proof business (look at how they've grown the business in two of the worst economic years in many a decade). If I stick with it and make it through the first year, I think I've finally made a good financial move for now and the future.

So - bringing me to the sub-head of my topic, any Florida members who are interested in seeing whether or not we can save them some money on their homeowner's policy, feel free to send a PM and I'll be happy to discuss your situation with you. Of course, there's no cost or obligation.

Oh, and I forgot the last, best thing: A 45 minute commute each way means much more time listening to music in the car.

[Matthew]

Congratulations Dan, I hope it works out well for you!

Edited August 15, 2010 by Matthew

[Hardbopjazz]

The best of luck.

[sidewinder]

Good luck with your new venture - and good listening !

[AllenLowe]

I'm what they call self - insured:

.

[papsrus]

Great news Dan. Sounds like an outstanding opportunity.

[JSngry]

Play for that money, Bo-EEEE!!!!

[Dave James]

Good luck with this, Dan. I worked in group insurance administration (claims, underwriting and medical underwriting management) for 35 1/2 years. Individual insurance is a tough business. Are you selling just mortgage cancellation and mortgage D.I. or other lines a well? Are the owners independent agents or captive? If they're captive, what companies are they representing?

If you're going to wind up supervising CSR's, make sure they're equipped to provide one stop shopping. That means knowing their stuff, so they can deal with 95% of the questions that come their way. Also, that they understand the provisions of your policies and, for comparative purposes, those of your competition. Trust me, that makes all the difference in the world. It will make your life as a supervisor whole lot easier and, more importantly, it will make your customers a whole lot happier.

[GA Russell]

Sounds like a great opportunity, Dan!

[jazzbo]

Congrats!

[Dan Gould]

Good luck with this, Dan. I worked in group insurance administration (claims, underwriting and medical underwriting management) for 35 1/2 years. Individual insurance is a tough business. Are you selling just mortgage cancellation and mortgage D.I. or other lines a well? Are the owners independent agents or captive? If they're captive, what companies are they representing?

I don't have a clue what you mean by mortgage cancellation or mortgage D.I. Most of the business is homeowner's insurance. We get referrals from mortgage broker businesses (the reason I found out about the job opening was that my wife has been sending them business since December when she started with her current employer, and now those deals will become mine - about 15 a month), title companies (I am working on another referral from my wife and hoping to get some business from the lady's title company when we're finished) and real estate offices, and referrals from existing clients.

We also offer auto (but not much since we write with Progressive and if you have internet access you'll get a quote 10% less just by going online), commercial, professional liability, workman's comp. We are not a State Farm office or anything of the sort and we are not restricted in who we write with, certainly not where it pertains to homeowner's policies.

If you're going to wind up supervising CSR's, make sure they're equipped to provide one stop shopping. That means knowing their stuff, so they can deal with 95% of the questions that come their way. Also, that they understand the provisions of your policies and, for comparative purposes, those of your competition. Trust me, that makes all the difference in the world. It will make your life as a supervisor whole lot easier and, more importantly, it will make your customers a whole lot happier.

Since I am the first hire they've made that they actually think will work out, I've ended up taking what I learn and writing SOPs (standard operating procedures), so we're putting into place a training process for future hires. What I am hearing from the boss and witnessing firsthand is that there is precious little selling involved, but I am sure there will be much more to learn when we move more strongly out of homeowners.

Thanks for the advice.

[ghost of miles]

In other words, you've decided to take your talents to Fort Lauderdale!

Congratulations, Dan--sounds like a great gig for you, and a very smart move on the agency's part to give you this opportunity.

[.:.impossible]

Congrats Dan.

[marcello]

Dan,

Mortgage Cancelation Insurance, or Personal Mortgage Insurance is a policy that lender require for those that have less than 20% cash down, to guarantee that at least that much of the the debt is paid off if there is a default. When the borrower gains 20% equity, the insurance can be cancelled.

Good Luck!

[Tim McG]

All the best, Dan.

Just don't go sideways on them like you do here sometimes.

Trust me on this

[JSngry]

We are not a State Farm office or anything of the sort and we are not restricted in who we write with, certainly not where it pertains to homeowner's policies.

I vividly remember this logo from the TV commercials of my youth!

[Dan Gould]

Dan,

Mortgage Cancelation Insurance, or Personal Mortgage Insurance is a policy that lender require for those that have less than 20% cash down, to guarantee that at least that much of the the debt is paid off if there is a default. When the borrower gains 20% equity, the insurance can be cancelled.

Good Luck!

Thanks!

OK, PMI is what my wife and I had to get and pay for - about $70 in escrows every month. Total bullshit (the house secures the loan in the first place, and what are the odds even now that the house won't satisfy 20% of the mortgage?) and nothing to do with what we are about. We're homeowner's hazard insurance, and by not screwing people we can get them the right policy for less than they pay now.

Which makes me realize something else that will work in my favor. In these tough times, everyone should be looking for ways to cut expenses, and pricing out your insurance and not passively accepting renewal offers is one way to do that.

[JSngry]

...what are the odds even now that the house won't satisfy 20% of the mortgage?...

Depends on where you live and when the mortgage boarded. I've seen some really nightmarish scenarios where the property value has dropped more than 75%. The phrase "negative equity" is not a media creation by any means...

Obviously that's not true in your case (hopefully!), but one of the as-of-yet-unplayed cards in the whole housing market collapse is whether or not the PMI companies are going to survive all the defaults, foreclosures, and short sales, and if so, at whose expense.

From a purely consumer standpoint, yeah, PMI is bullshit, an unnecessary pad-on. Most people do not default, period. But as a "business decision" on the part of the mortgage underwriters, it's not as obviously exploitative as it might appear at first glance.

Which is not to say that it's ultimately still not exploitative. But "business" is all about making that money and "protecting that investment", doncha' know...

[Van Basten II]

Happy for you mate, hope it turns out great !

[papsrus]

I think PMI is only required at the time of purchase, if you're putting less than 20% down. If the value of your home drops to where you no longer have that 20% equity in it, I don't think the bank suddenly requires you to buy PMI. ... Sure hope not, anyways.

[JSngry]

they don't