MAKING THE TRANSITION
The long term growth and viability of any organization is wholly dependent on the staff and members that serve at its foundation. At Pacific Crest, we know first-hand what it takes to be successful as business owners, successful agents and experience longevity in an industry ripen with attrition and turnover. As such, we focus our recruiting efforts toward identifying specific agent characteristics and skill sets that best align to our agency culture. This balance of experience, integrity and motivation has allowed the Alliance to maintain the highest caliber agents and minimize the turnover associated with unfocused growth. With over 170 agents and growing, the Pacific Crest Alliance has recruited, developed and partnered with agents from every facet of the insurance industry. From the captive agent to the seasoned independent, Pacific Crest knows the significant challenges and stresses facing agents seeking transition and we have devised unique programs to address these concerns and increase the agent’s probability of success. The following table outlines the typical agents we encounter seeking growth opportunities or change and the broad Pacific Crest solutions available to assist the transitioning or interested agent.
Targeted Agents for the Pacific Crest Alliance
| Agents |
Who they are and What we see? |
| The Experienced Producer |
These individuals usually work as a sales producer for a Captive or Independent Agency Owner. They have 2 or more years of success and experience selling property and casualty within this environment. They have built a large book of customers for that Agency owner only. There comes a point when these individuals realize they can do exactly what the Agency owner is doing and are not getting any of the benefit. |
| The Captive Agent |
This type of agent has a minimum of 2 years of success as a captive agent. They operate and are held accountable to all the aspects of a business owner but have very little freedom and independence that comes along with running their own business. Typically at around 2 years, these agents get the "grass is greener" bug and look for outside solutions. Higher compensation, more markets, more freedom and long term ownership are driving this move. The number one reason most don’t make the move is "Fear". Leaving that security blanket of captive customers behind and starting from ground zero for income, takes belief and courage in ones ability to start over. |
The Existing Independent Agent
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This independent agency owner resides on the Independent side of insurance. They usually have 2 to 15 years of agency experience and many times have left former Captive relationships or were producers within an Agency. Going out on their own was a definite step in the right direction. However, these agents are on their own, dealing with heavy expense loads, managing office support staff, dealing with commissions and downloads, working on IT and other technology, managing, dealing with and feeding Carrier markets, etc...These individuals are overwhelmed, overworked and most often inefficient. |
The Mature Existing Independent Agent
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These mature agency owners usually have 15 years or more in the business. For the most part these agents are on auto-pilot, focused mainly on service and not sales. Their Agencies are usually not growing and often are shrinking due to this stage in their lives right before or at retirement. They talk a lot about stepping aside and getting someone they trust to run their agency, they may even mention selling their agency "some day". For the most part these owners have already done the math in their head and know if they sell their agency, they will soon be without an income. These same agencies are getting pressure from their once beloved and trusted Carrier relationships because they are no longer producing at the levels they were years ago. |
Making the Transition “Solutions”
| Agents |
Transition Solution |
| The Experienced Producer |
Pacific Crest has built a powerful framework to transition the experienced producer into our Independent Agent environment. These new Agent Owners are seamlessly plugged into our complete agency platform and aligned with a seasoned Regional Director in the state where they are located. Technology systems are launched and carrier training occurs immediately so these individuals in short order, can be up and writing compliant business as they had previously. Because these agents many times lack business ownership experience, the Pacific Crest platform was designed with the intent to handle most all back office administration and business functions so an agents only focus is sales and service. In addition, a hands on mentor is available in their State to discuss specific guidelines and requirements that are unique to their area. |
| The Captive Agent |
Because Pacific Crest was started by former Captive agents, we have developed our platform and have the answers to the majority of the fears and concerns that plague all former captive agents with their transitioning. We realize that captive agent customers must be left, commission income will stop and our agents are subject to and must abide by strict non-compete and piracy agreements. This often times is very stressful for our Alliance partners. Pacific Crest is hyper sensitive to these issues and understands the importance of getting a transitioning captive agent set up and writing business in a minimal period of time. We pride ourselves on quickly and efficiently completing agent contracts, appointments, technology set up and training while at the same time eliminating or reducing the former administrative time drain and excessive business expenses felt in the agents prior captive relationship. Captive agents mold well into our Alliance because they already understand the sales side and business side of insurance. Due to this experience Pacific Crest's back office team can fast track these agents, getting them familiar with the multitude of Carriers we have relationships with along with the unique appetites of each Carrier market. It is our intent with every Captive agent to give them the tools, the training and the Independence so they can plug in and start building their own agency at their own pace. |
| The Existing Independent |
When compared to their current Agency, it is much easier for the existing independent agency owner to actually see the full value being provided by the Pacific Crest Alliance. Because Pacific Crest has a growing nationwide Agency force along with a strictly focused back office team, existing agency owners realize immediate benefits. By partnering with Pacific Crest these agency owners have substantial reductions in their agency expenses, an exponential increase in their available time and from the initial transition participate in higher negotiated enhanced compensation and contingency bonuses. In addition, our existing Alliance agency owners are able rely on the Alliance for the administration side of their business and rid themselves of time staking activities, like policy downloads and matchups, commission reporting and book keeping, carrier compliance audits and carrier production meetings. Although most of our existing independent agency partners were successful on there own merits, the strength of working within a larger group far exceeds the potential of being a sole practioner. With a larger footprint and greater respect from Carrier partners, existing agencies within the Alliance find they have additional Carrier support that they were not accustomed to as a smaller agency. The complete Carrier experience of working within an Alliance gives the existing agency owner an edge over there sole practitioner counterparts in underwriting, customer service, marketing, training and sales support. |
| The Mature Existing Independent |
Pacific Crest understands that the agency benefits provided to the new, captive and existing independent are important to the mature existing independent but these benefits are not the primary focus of these veteran agency owners. For the most part these mature agency owners are looking for a solid perpetuation strategy that they can rely on. These agents want to eventually retire with certainty and feel confident that they will be able to live off what they have worked long and hard for without the fear of running out of money. In addition, these business owners often times want to be a part of something, having the choice to still be active in the independent insurance business but not deal with the problems and headaches associated with running an agency. Pacific Crests cutting edge perpetuation strategy for these mature independent agency owners provides this short or long term exit strategy. We have built this plan well beyond the simple 1 or 2 times multiple so often discussed when these agency owners are being approached by unknown and some times incompetent buyers. This strategy was designed after consulting and working with retiring agency owners over the years and focuses on these primary areas of importance: Protecting the Agents customer base, Providing agent the ability to stay as active in the business as they would like, Giving peace of mind to the agency owner on a certain buyout at the time of retirement, Providing a key component for a consistent income stream over agency owners and spouses life. |
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Meet Our Most Valuable Player
Alex Pieters
Pieters Insurance - Minden, Nevada
MINDEN, Nevada — A small community of just more than 3,000 residents east of the southern tip of Lake Tahoe, Minden, Nevada, is a quiet little town in the heart of the Carson Valley.
For just about a quarter of a century, Alex Pieters was one of a handful of police officers in the county seat of Douglas County.
Knowing the community as he does, it made sense that Alex would hang his shingle in this community that once boasted it was a getaway destination for some of the biggest names in Hollywood, including Clark Gable and Jean Harlow.
Alex understands that to succeed in a small town, being competitive with price is important.
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