Home › Things to Do Before Buying an Insurance Book of Business

Is it time for your insurance agency to grow? If you’re looking to buy an insurance book of business for sale, you should get some firsthand advice from people who’ve sat in the same chair you’re sitting in. We’ve rounded up a few tips to help you understand the bigger picture and prepare you for when it’s time for your business to grow.  

Insurance Book of Business for Sale

What You Should Do Before Buying an Insurance Book of Business

Do Your Due Diligence

Don’t even think about purchasing an insurance agency book of business if you haven’t done your due diligence. You’ll thank yourself for researching the product, the company, its underwriting process, and the local market. While you’re at it, find out about the competition. Determine whether the customers in the area are primarily low-risk or high-risk and if the available products are aligned with the market.  

Besides taking local and national market trends into account, you should also consider future construction plans, legislation, and other factors that can significantly impact your decision to purchase.  

Understand Your Audience and the Local Market   

If you want to sell competitive products, you’ll want to make sure that they’re aligned with the needs of the consumers. For instance, if you’re excellent with home insurance policies, you wouldn’t want to purchase a book of business focused on markets that consist mainly of renters. Checking out the consumer rating score across the products you’re selling will give you an idea of the products that fit the needs of the consumers in the area.  

Purchase a Book with High-Value Customers

The majority of the policies in the insurance book of business you’re looking to buy should be high-value and not high-risk customers. Otherwise, you’ll be spending all of your time and energy maintaining the book rather than going and building on it. If you want to know the book’s accurate valuation, check the client retention level.  

Lawyer in Suit Pointing Insurance Book of Business for Sale

Looking for an Insurance Book of Business for Sale?

At Energia Consulting Partners, LLC, we specialize in all aspects of the sale of an insurance agency with an emphasis on the Allstate & Farmers Insurance Company distribution model. Call now to learn more about what we can do for you.