I Want To Start An Auto/home Insurance Company...

DESHAUN MICHAELS

DESHAUN MICHAELS

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Any One Have Any Experience Or Knowledge On This Subject?

I Don't Want To Do A License Deal Under Alstate Or Another Bigger Company. I Would Like To Create Something Completely New.

Thanks
 
I am not quite sure what you are asking. Are you saying you want to insure the houses? Will you be the one with the capital to replace the house when the tenants burn it down?


DESHAUN MICHAELS said:
Any One Have Any Experience Or Knowledge On This Subject?

I Don't Want To Do A License Deal Under Alstate Or Another Bigger Company. I Would Like To Create Something Completely New.

Thanks
Click to expand...
 
DESHAUN MICHAELS said:
Any One Have Any Experience Or Knowledge On This Subject?
I Don't Want To Do A License Deal Under Alstate Or Another Bigger Company. I Would Like To Create Something Completely New.
Thanks
Click to expand...

I work for one of those LARGE insurance companies. Yes you can do very well for yourself if you are willing to put in the work over a period of years :yes:

It seems as though you currently do not have experience in this discipline.

Insurance is not rocket science........but just like any other craft.....there is a learning curve.

My question is what are you asking?

A) Do you want to be a BROKER for Property and Casualty products to customers

or are you asking:

B) How to start your very own INSURANCE COMPANY from scratch?



Option A has a start up cost of about $40K - $100K
Option B has a start up cost of $10 Million+
 
DiamondDeuce said:
Option B has a start up cost of $10 Million+
Click to expand...

I have done some research and I have some investors.In my research I found that 500k- 1 million can be start up expenses for a new compny from scratch.But I also have to get a license and some other things.

I see a lot of these rinkydink insurance companies around Atlanta that look like they running on zero capital.But maybe they have some money behind them,who knows.

I think I will just stic to auto insurance for now and broaden out later.

IF ANYONE HAS ANY INFO FEEL FREE TO LET ME KNOW.
 
Ok so you are talking about getting your own certificate of authority and starting an Auto Insurance Company?

You will need to:
  • Hire product managers to develop a rating plan (heavy math)
  • Budget money to outsource claims (expensive)
  • I.T. to develop desktop rating software for agents to use.
  • Hire a legal team to make sure your policies and forms are legit
  • File a certificate of authority with the department of insurance (expensive)
  • Have the required liquid money set aside for reserves (a shitload of money)
  • Marketing budget (Expensive) Why would somebody use your Deshaun Michaels Insurance company over State Farm?

Dude I work in P&C here in ATL. You may think that most of those are RINKY DINK companies.........but they are not. Even a good number of the smaller companies are subsidiaries of LARGER companies. Or most of the rinky dink auto insurers Safe Auto, Direct General....etc are still in size of upwards of $100 million dollars..especially if they operate in several states.

Trust me I do this for a living. Most of small auto insurance companies are started by reinsurance or managed general agency. These companies throwout like $10 million+ budgets to start up programs.

Plus it seems that you still do not have KNOWLEDGE of the P&C insurance. What would be your "ROLE" be in this endeavor?
Why would an investor give you $1MILLION for something you have NO WORK EXPERIENCE in or knowledge?
 
DiamondDeuce said:
Ok so you are talking about getting your own certificate of authority and starting an Auto Insurance Company?

You will need to:
  • Hire product managers to develop a rating plan (heavy math)
  • Budget money to outsource claims (expensive)
  • I.T. to develop desktop rating software for agents to use.
  • Hire a legal team to make sure your policies and forms are legit
  • File a certificate of authority with the department of insurance (expensive)
  • Have the required liquid money set aside for reserves (a shitload of money)
  • Marketing budget (Expensive) Why would somebody use your Deshaun Michaels Insurance company over State Farm?

Dude I work in P&C here in ATL. You may think that most of those are RINKY DINK companies.........but they are not. Even a good number of the smaller companies are subsidiaries of LARGER companies. Or most of the rinky dink auto insurers Safe Auto, Direct General....etc are still in size of upwards of $100 million dollars..especially if they operate in several states.

Trust me I do this for a living. Most of small auto insurance companies are started by reinsurance or managed general agency. These companies throwout like $10 million+ budgets to start up programs.

Plus it seems that you still do not have KNOWLEDGE of the P&C insurance. What would be your "ROLE" be in this endeavor?
Why would an investor give you $1MILLION for something you have NO WORK EXPERIENCE in or knowledge?
Click to expand...

THANKS FOR THE ADVICE BUT YOU COME ACOSS LIKE A CRAB.LIKE IT CAN'T BE DONE.

THANKS ANYWAY. I WILL TAKE YOUR INFO AND USE IT WISELY.:)
 
Hey its cool.. not trying to come off like a crab.......
I have thought about this several times for myself. There are a lot of things to consider.

What is your target market?
What is your distribution system?
What is your projected expected return?

Are you focused on underwriting profit?
 
DiamondDeuce said:
Hey its cool.. not trying to come off like a crab.......
I have thought about this several times for myself. There are a lot of things to consider.

What is your target market?
What is your distribution system?
What is your projected expected return?

Are you focused on underwriting profit?
Click to expand...


Deuce great advice! There has to be a realistic approach
to business as well. I used to work for a Major co also.
 
DiamondDeuce said:
Hey its cool.. not trying to come off like a crab.......
I have thought about this several times for myself. There are a lot of things to consider.

What is your target market?
What is your distribution system?
What is your projected expected return?

Are you focused on underwriting profit?
Click to expand...

THERE ARE A LOT OF THINGS TO CONSIDER IN ANY BUSINESS AND ALL BUSINESSES ARE TO BE TAKEN FROM A REALISTIC APPROACH.:confused::confused: :confused:

ANYWAY ,YOU ARE ASKING ME THESE QUESIONS FOR WHAT REASON? I CAME HERE LOOKING FOR ADVICE, NOT TO BE ASKED QUESTIONS.

YOU SOULD LIKE YOU TRIED AND DID NOT SUCCEDE BUT NOW SEEM JEALOUS THAT SOMEONE ELSE WANTS TO GIVE IT A SHOT.

MAYBE IT'S JUST ME BUT WHEN SOMEONE WANTS TO GIVE ADVICE (POSITIVELY) YOU DON'T ASK QUESTIONS IN A CONDECENDING WAY.

You sound like kats in the hood.you ell them you want to do something and they start asking "how you gonna do that and you didn't graduate from school?" "how you gonna get a job and you a felon???"

THE CRABS QUESTION YOU TO MAKE YOU DOUBT YOURSELF.TO KEEP YOU WHERE THE ARE, (WITH THEM) CAUSE' HEY,THEY AINT' ABOUT TO ACCOMPLISH SHIT SO WHATS YOU THINK YOU CAN DO ANYTHING:lol:

PLEASE TELL ME YOU UNDERSTAND ME.IF NOT I KNOW WE ARE NOT ON THE SAME LEVEL (INTELLECTUALLY) AND I WILL END ALL CONVERSATION WITH YOU.:D
 
DESHAUN MICHAELS said:
ANYWAY ,YOU ARE ASKING ME THESE QUESIONS FOR WHAT REASON? I CAME HERE LOOKING FOR ADVICE, NOT TO BE ASKED QUESTIONS.
Click to expand...

You starting to sound like one of them chicks on SOL. You post a question........and then when people aren't co-signing you.........you act like your feelings are hurt.

If you get upset when people ask you questions about an IDEA THAT YOU POSTED....then you are NOT READY TO GO INTO BUSINESS. Trust me when you show people a business plan, you are going to get hit with a TON of tough questions about a business idea.

If I made a post saying "I want to start an OIL COMPANY" Niggas might say that is a difficult thing to do........and that you need a lot of money..which is true... So chill out.

All of the questions that I asked let the board (people you asked) WHAT STAGE YOU ARE AT.....in order to know what TYPE OF ADVICE to give you.

Trust me I have other shit to do rather than to come on the BUSINESS board and type out questions to just FUCK WITH YOU.

So chill out answer the questions if you choose.........and get some of the knowledge from the many posters on this board.
 
ODUB said:
Deuce great advice! There has to be a realistic approach
to business as well. I used to work for a Major co also.
Click to expand...


Well the OP does not think that I have great advice.
He seems to think that you can start a P&C company with $500K - $1Million.
I mean that may be possible if you start with a small niche market ie. LIMO or CAB insurance.

Plus since you worked for a MAJOR you already know that Homeowner's insurance is NOT profitable for most carriers.

I wonder if the OP even knows what a COMBINED RATIO is? Yet he saying he going to start a P&C company from the ground up. :smh:
 
DiamondDeuce said:
Well the OP does not think that I have great advice.
He seems to think that you can start a P&C company with $500K - $1Million.
I mean that may be possible if you start with a small niche market ie. LIMO or CAB insurance.

Plus since you worked for a MAJOR you already know that Homeowner's insurance is NOT profitable for most carriers.

I wonder if the OP even knows what a COMBINED RATIO is? Yet he saying he going to start a P&C company from the ground up. :smh:
Click to expand...

Thanks for your info I WILL USE IT RESPECTFULLY:D
 
To add to some of DiamondDeuce suggestion:
You also need an investment wing of the company that will invest the capital.


How did you get off on this tangent to where you started attacking DiamondDeuce? Those were perfectly legitimate questions which would tell him/us what stage you are in and how much more he/we can be of service. The fact that its something he has thought of should be welcoming news to you, because it meant he got to a stage that you either need to get to or have passed. If you haven't gotten passed that stage then he could probably share his research with you. If you are pass where he reached he can still be of service because he can be a member of your team since clearly it's an industry he has experience.

The whole process is just a team building thing and don't be so snide that even the dummy on here wont ask his friend who knows someone who knows someone who might just be your link.




DESHAUN MICHAELS said:
THERE ARE A LOT OF THINGS TO CONSIDER IN ANY BUSINESS AND ALL BUSINESSES ARE TO BE TAKEN FROM A REALISTIC APPROACH.:confused::confused: :confused:

ANYWAY ,YOU ARE ASKING ME THESE QUESIONS FOR WHAT REASON? I CAME HERE LOOKING FOR ADVICE, NOT TO BE ASKED QUESTIONS.

YOU SOULD LIKE YOU TRIED AND DID NOT SUCCEDE BUT NOW SEEM JEALOUS THAT SOMEONE ELSE WANTS TO GIVE IT A SHOT.

MAYBE IT'S JUST ME BUT WHEN SOMEONE WANTS TO GIVE ADVICE (POSITIVELY) YOU DON'T ASK QUESTIONS IN A CONDECENDING WAY.

You sound like kats in the hood.you ell them you want to do something and they start asking "how you gonna do that and you didn't graduate from school?" "how you gonna get a job and you a felon???"

THE CRABS QUESTION YOU TO MAKE YOU DOUBT YOURSELF.TO KEEP YOU WHERE THE ARE, (WITH THEM) CAUSE' HEY,THEY AINT' ABOUT TO ACCOMPLISH SHIT SO WHATS YOU THINK YOU CAN DO ANYTHING:lol:

PLEASE TELL ME YOU UNDERSTAND ME.IF NOT I KNOW WE ARE NOT ON THE SAME LEVEL (INTELLECTUALLY) AND I WILL END ALL CONVERSATION WITH YOU.:D
Click to expand...
 
DiamondDeuce said:
Ok so you are talking about getting your own certificate of authority and starting an Auto Insurance Company?

You will need to:
  • Hire product managers to develop a rating plan (heavy math)
  • Budget money to outsource claims (expensive)
  • I.T. to develop desktop rating software for agents to use.
  • Hire a legal team to make sure your policies and forms are legit
  • File a certificate of authority with the department of insurance (expensive)
  • Have the required liquid money set aside for reserves (a shitload of money)
  • Marketing budget (Expensive) Why would somebody use your Deshaun Michaels Insurance company over State Farm?

Dude I work in P&C here in ATL. You may think that most of those are RINKY DINK companies.........but they are not. Even a good number of the smaller companies are subsidiaries of LARGER companies. Or most of the rinky dink auto insurers Safe Auto, Direct General....etc are still in size of upwards of $100 million dollars..especially if they operate in several states.

Trust me I do this for a living. Most of small auto insurance companies are started by reinsurance or managed general agency. These companies throwout like $10 million+ budgets to start up programs.

Plus it seems that you still do not have KNOWLEDGE of the P&C insurance. What would be your "ROLE" be in this endeavor?
Why would an investor give you $1MILLION for something you have NO WORK EXPERIENCE in or knowledge?
Click to expand...
Very good legitimate points. I've been in the Insurance industry for quite awhile but in the life/health and a member of national association of insurance and financial planners. I sat through 40 hour p&c class but never took the test for license. But, not to sound like a crab I can't see investors droping that kind of money in someone that haven't worked in the industry or have a license. But, to my knowledge you have to have an appointment from a company to take the 40 hour course and state exam.
 
kjxxxx said:
In the ATL area there are quite a bit of movers and shakers that come on here. There is a whole lot of networking going on in the background on BGOL.
Click to expand...

Yes.... I might be one of those movers and shakers in the "A". ... and the man would not even answer some basic questions that I had for him.
Hell if he gets sensitive when people ask him legitimate questions.....I would hate to see him in a room full of Angel Investors. They would EAT HIS ASS ALIVE.

Yes most things are possible. But you must have a realistic approach in order for them to happen. Desire alone is not enough.
 
DiamondDeuce said:
Yes.... I might be one of those movers and shakers in the "A". ... and the man would not even answer some basic questions that I had for him.
Hell if he gets sensitive when people ask him legitimate questions.....I would hate to see him in a room full of Angel Investors. They would EAT HIS ASS ALIVE.

Yes most things are possible. But you must have a realistic approach in order for them to happen. Desire alone is not enough.
Click to expand...

BROTHER.......WHEN I STARTED THE POST I SAID "GIVE ME INFO" AND I MENTIONED THAT I WANTED TO START FROM SCRATCH.(THAT SHOULD HAVE LET YOU KNOW WHERE I STOOD IN THIS VENTURE----AT GROUND ZERO).

YOU CAME IN THE THREAD ASKING QUESTIONS (WHICH INVOLVES TRYING TO GET INFORMATION---FROM A PERSON THAT OBVIOUSLY HAS NO CLUE ABOUT THE SPECIFIC SUBJECT,OTHERWISE WHY WOULD HE ASK) ABOUT CERTIFICATES OF AUTHORITY ETC. INSTEAD OF TRYING TO GIVE THE INFO FREELY AND BE HELPFUL YOU CAME IN LIKE A LUNATIC TRYING TO SHOW HOW MUCH YOU KNOW ABOUT THE INSURANCE INDUSTRY.

I DON'T MIND TOUGH QUESTIONS,BUT IF THE QUESTIONS BEING ASKED HAVE NO POINT (I COULD NOT ANSWER ANY OF YOUR QUESTIONS BECAUSE I DON'T KNOW SHIT ABOUT THE INSURANCE INDUSRTY:lol:--YOU WOULD HAVE KNOWN THIS IF YOU READ MY INTRODUCTORY THREAD CLEARLY)

WHY AM I WAISTING MY VALUABLE TIME TRYING TO EXPALIN--WHO FUCKING KNOWS (OH AND BY THE WAY WHEN I CURSE PLEASE DON'T TAKE IT AS ME BEING UPSET THIS IS SIMPLY HOW I LIKE TO EXPRESS MYSELF):D

I JUST WANT YOU TO UNDERSTAND THAT THERE ARE DIFFERENT WAYS TO DO THINGS.

WHEN SOMEONE ASKS A QUESTION YOU CANNOT GET ANYTHING ACCOMPLISHED WHEN THE VERY FIRST THING THAT COMES OUT OF YOUR MOUTH IS ANOTHER QUESTION.

IF YOU DON'T UNDERSTAND PM ME.

DESHAUN MICHAELS
 
DESHAUN MICHAELS said:
I JUST WANT YOU TO UNDERSTAND THAT THERE ARE DIFFERENT WAYS TO DO THINGS.

WHEN SOMEONE ASKS A QUESTION YOU CANNOT GET ANYTHING ACCOMPLISHED WHEN THE VERY FIRST THING THAT COMES OUT OF YOUR MOUTH IS ANOTHER QUESTION.

IF YOU DON'T UNDERSTAND PM ME.

DESHAUN MICHAELS
Click to expand...

Right.

Well you want folks to take you seriously? When you ask for advice you might need to be prepared to answer questions.

Oh..taken seriously............. HOW ARE YOUR RIMS COMING....how is that business?.:lol::lol::lol::lol::lol::lol::lol:
 
DiamondDeuce said:
Right.

Well you want folks to take you seriously? When you ask for advice you might need to be prepared to answer questions.

Oh..taken seriously............. HOW ARE YOUR RIMS COMING....how is that business?.:lol::lol::lol::lol::lol::lol::lol:
Click to expand...

wow.YOU DON'T MIND MAKING YOURSELF LOOK LIKE A FOOL DO YOU?WHEN YOU FEEL YOU HAVE BEEN SLIGHTED YOU CHANGE THE SUBJECT AND TRY TO DIS AT ANOTHER ANGLE.

I GUESS THAT'S WHY YOU WORK FOR SOMEONE ELSE AND I WORK FOR MYSELF:D

GOOD LUCK ON YOUR INSURANCE CAREER MAYBE YOU WILL WORK FOR ME WHEN I GET MY OWN INSURANCE COMPANY.

OH...........AND IT WILL HAPPEN
 
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Let me know when you do an IPO on your RIM company........:lol::lol::lol::lol::lol:

DESHAUN MICHAELS said:
wow.YOU DON'T MIND MAKING YOURSELF LOOK LIKE A FOOL DO YOU?WHEN YOU FEEL YOU HAVE BEEN SLIGHTED YOU CHANGE THE SUBJECT AND TRY TO DIS AT ANOTHER ANGLE.

I GUESS THAT'S WHY YOU WORK FOR SOMEONE ELSE AND I WORK FOR MYSELF:D

GOOD LUCK ON YOUR INSURANCE CAREER MAYBE YOU WILL WORK FOR ME WHEN I GET MY OWN INSURANCE COMPANY.

OH...........AND IT WILL HAPPEN
Click to expand...
 
first step before anything else would be to go to a class for licensing so you have a basic understanding of the industry itself

you would be a fool to not get basic understanding for the industry you are considering entering (you are ignorant(lack basic knowledge) of the workings)
 
Good luck,
I tihnk working for an insurance company or broker for a while would be a very good idea. To make it in that industry you will need solid contacts.

Something completely new , you can forget about it. Sorry to be so negative but this is an industry that demands high capital.


Think of the claim size that just 2 persons can rack up, plus you will have to defend yourself against insurance fraud, alot of people make their living ripping off insurance companies.

Plus there are alot of legal issues with the amount that must be reserved for the premiums you collect ,and you cannot do this yourself you need (by law)an Actuary (a fully qualified one) to sign off,.



I am not saying you can't do it,you can but forget the "home" part. Even with a niche as someone suggested , the model has some inherent problems (in that the number of potential customers go down, drastically).

If you can get a group together then it has some more potential (sales, actuaries , lawyers, and people to finance it) even then it is an uphill struggle.


It is probably easier to start a bank at home, I don't know about that industry but the check cashing store model seems like it is worth looking at, and I don't see any huge drawback in starting small,

in insurance starting small is a disaster (because of how insurance models work, the smaller the number of people insured the bigger the variance, ie the bigger the risk).
 
DiamondDeuce said:
Ok so you are talking about getting your own certificate of authority and starting an Auto Insurance Company?

You will need to:
  • Hire product managers to develop a rating plan (heavy math)
  • Budget money to outsource claims (expensive)
  • I.T. to develop desktop rating software for agents to use.
  • Hire a legal team to make sure your policies and forms are legit
  • File a certificate of authority with the department of insurance (expensive)
  • Have the required liquid money set aside for reserves (a shitload of money)
  • Marketing budget (Expensive) Why would somebody use your Deshaun Michaels Insurance company over State Farm?

Dude I work in P&C here in ATL. You may think that most of those are RINKY DINK companies.........but they are not. Even a good number of the smaller companies are subsidiaries of LARGER companies. Or most of the rinky dink auto insurers Safe Auto, Direct General....etc are still in size of upwards of $100 million dollars..especially if they operate in several states.

Trust me I do this for a living. Most of small auto insurance companies are started by reinsurance or managed general agency. These companies throwout like $10 million+ budgets to start up programs.

Plus it seems that you still do not have KNOWLEDGE of the P&C insurance. What would be your "ROLE" be in this endeavor?
Why would an investor give you $1MILLION for something you have NO WORK EXPERIENCE in or knowledge?
Click to expand...

Co-sign I'm a P&C adjuster for insurance company founded in 1998 in Atlanta Ga. This dude is pretty much on point. One of the founders invested millions of his own dollars to make it the company it is today.... and both CEO and Chair has White House connections... its going to take some serious cash to to open one. My company lost money for 3-4 years before turning a profit... when it start making a profit... its gives a large bonuses to its employees. :dance:
 
Mr.Still Fly said:
Co-sign I'm a P&C adjuster for insurance company founded in 1998 in Atlanta Ga. This dude is pretty much on point. One of the founders invested millions of his own dollars to make it the company it is today.... and both CEO and Chair has White House connections... its going to take some serious cash to to open one. My company lost money for 3-4 years before turning a profit... when it start making a profit... its gives a large bonuses to its employees. :dance:
Click to expand...

I tried to tell the OP that.......but he thought I was being a "Crab".
Nothing wrong with wanting to "start" a business.......but you have to also realize that some industries have what is called BARRIERS TO ENTRY:
Airline
Oil
Telecommunications

Any industry which is heavily regulated (like Insurance) is going to require a great amount of CAPITAL, CONNECTIONS, and/or EXPERTISE to start.

But again.....I'm just "HATING".
 
DiamondDeuce said:
I tried to tell the OP that.......but he thought I was being a "Crab".
Nothing wrong with wanting to "start" a business.......but you have to also realize that some industries have what is called BARRIERS TO ENTRY:
Airline
Oil
Telecommunications

Any industry which is heavily regulated (like Insurance) is going to require a great amount of CAPITAL, CONNECTIONS, and/or EXPERTISE to start.

But again.....I'm just "HATING".
Click to expand...
Hell yeah... shit I'm just a P&C adjuster and my licenses for the states I work in are expensive as hell... :smh:

Now if dude said he wanted to be an agent... that would be cool... becuase you can make some great money opening your own agencies and sell polices on behalf of insurance polices. Every time a policy renews the agent always gets a check from the insurance company.
 
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