If you’re buying an insurance agency or if you’re looking to take on more customers, purchasing a book of business might be something you’ve been considering. It’s not just as simple as buying a bunch of customers though. It has to be the right fit for your business. If you don’t get the right fit, those clients have no obligation to stay with you, resulting in quite the damaging financial blow to your agency. Let’s go over a few things to research so when you’re looking at an insurance book of business for sale, you can make the right decision.
Why is an insurance agent selling their book of business? You might be wondering why that matters, but it is actually a really good reflection of what kind of purchase you’re making. If the agent is simply retiring, there’s a better chance you’ll be making a worthy purchase, however, if the agent is just calling it quits because their business is not doing well, it might be a sign their book isn’t very valuable.
If there’s a lot of competition, that might be another sign to take a look elsewhere, especially if you’re just starting out. You might think aiming high is a good thing, but it could very well lead to a greater fall. Don’t get ahead of yourself and make smart decisions.
Are the customers in the book high-risk? Even if it might seem really appealing at first, low–risk customers are a lot better than high-risk customers. Make sure to ask a lot of questions before your purchase so you know exactly what you’ll be getting into.
Looking for an Insurance Book of Business for Sale?
One of the most important things to think about when you buy a book of business is to maintain it or else it’ll ultimately be useless. If you’re just starting out with your insurance agency or you’re looking to make a purchase, Energia Partners is here to help. Contact us today to get started!