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Getting expert advice on buying an insurance book of business for sale is a must if it’s your first time purchasing an agency. You can check to see if their insight can be valuable to you as your agency grows.

What is an Insurance Book of Business for Sale?

What are the 3 Things You Should Do Before You Purchase an Insurance Book of Business?

Do Your Due Diligence

If you’re in the market to buy any insurance agency book of business, doing your research on the company, their product, their underwriting process, and the local market is a must! It’s extremely important to know if there’s a lot of competition, whether the customers around the area are high-risk or low-risk, and whether the products align with the market.

Know and Understand the Audience and Local Market

One of the most important things you can do before you leap is to look at the consumer rating scores of the different types of products you’re selling such as Home, Auto, Life policies, and Renters. While you’re at it, be sure to sell products that meet the consumers’ needs so that you won’t end up selling something that’s not competitive. For instance, if you’re doing great with home insurance policies, you shouldn’t be purchasing a book that’s focused on markets that are comprised of renters.

Look for a Book of Business with High-value Customers

Most of the policies in the book of business you’re planning to purchase should be high-value instead of high-risk customers. Without knowing the level of retention, you won’t determine the true valuation of the book. Your goal should be to build on the book rather than spending all of your energy maintaining it in an effort to keep all of your clients.

Think About Buying from Retired Agents

It’s best to buy a book of business from a retired agent than that of an agent whose business has failed. The retired agent will likely have a more lucrative book than the failed agent.

What is an Insurance Book of Business for Sale?

Looking for an Insurance Book of Business for Sale?

At Energia Consulting Partners, LLC, we have many available resources to aid you in buying. Contact us today for inquiries!