California Insurance Commissioner Steve Poizner has issued proposed regulations for Pay-Drive (Usage Based Auto Insurance), and is accepting public comments on the proposal until 5 p.m., Thursday, July 9, 2009.

According to the Commissioner, “Insurers frequently rely on consumers to provide their own estimates of the number of miles they drive annually. Continue reading "California Insurance Commissioner Seeks Comments on PAYD Auto Insurance"

There may be no industry in this country experiencing consolidation at a faster pace than the insurance agency business.  Since 1990, the total number of independent insurance agencies has shrunk by more than 20%, but smaller agencies have disappeared at nearly double that rate.  So where have all the agencies gone and what does it mean for today’s agency owner?  Continue reading "The Impact of Insurance Agency Consolidation"

We’ve written on numerous occasions how unbalanced the ratio is of insurance agency buyers compared sellers. Other than Insurance Agency Consulting, the number one reason clients contact us is to BUY an Insurance Agency. Since there are so few sellers in the marketplace this may be the best time to sell your insurance agency. Continue reading "Commercial and Personal Lines Insurance Agencies for Sale are in Demand"

State Farm’s 3.3 million California auto insurance policyholders will soon see a decrease in their premiums, as the California Department of Insurance approved an 8 percent, $219 million rate cut. Continue reading "State Farm to Cut California Auto Insurance Rates"

Mercury General reported net income in the first quarter 2009 was $96.7 million compared with net loss of $4 million for the same period in 2008. Included in net income are net realized investment gains, net of tax, of $50.7 million in the first quarter of 2009 compared with net realized investment losses, net of tax, of $59.9 million for the same period in 2008. Continue reading "Mercury General Reports Implements Salary Freeze, 7% Workforce Reduction"

Insurance agency owners who are considering selling their agency, are obviously very curious about the price they can sell their agency for.  It’s the single most asked question of Acquisition Brokers like Ganis Consulting, “How much can I make if I sell my agency?”  Continue reading "The Price of Your Insurance Agency: Do the Math"

About 50% of our daily activity is helping Insurance Agency Owners sell their agencies. We’ve always specialized in Seller and Buyer representation but also consult new and existing insurance agencies. Continue reading "Starting a New Insurance Agency Can be Exciting and Profitable"

Locating an insurance agency for sale can create more challenges than buyers and sellers realize. Once you locate an insurance agency for sale, what are the next steps? Sign confidentiality agreements, learn as much as you can about the agency, interview the seller of the agency, visit the location, request documentation about the agency, submit and negotiate an offer, request due diligence material, conduct due diligence,  negotiate and prepare a purchase agreement, locate financing, and finally close the deal. Continue reading "There are Many Steps to Buying or Selling an Insurance Agency"

We spend 100% of our time prospecting insurance agencies for sale and know from experience that locating a viable candidate is no easy task. To find an insurance agency for sale that profitable, has reasonable pricing, good markets, location, employees and other positive features can literally take years for you to locate. Continue reading "Locating and Buying an Insurance Agency is no Easy Task"

Despite the bad economy, soft market and freeze in lending, Insurance Agencies for sale are still in demand. If you have a profitable agency and are looking to sell it, there are plenty of buyers in this market. While most Main Street businesses are struggling to stay afloat let alone sell, Insurance Agencies remain in demand because of the renewal revenue stream they provide. Continue reading "Selling your Insurance Agency or Brokerage in 2009"