Recently, my youngest son came to me with some exciting news: he had decided to get some training and open his own business. I was truly excited because I feel he has the right frame of mind to be an entrepreneur. My happiness was crushed when he went on to inform me he was thinking of getting his insurance license and opening an agency. I immediately thought of all the young people over the years that had discussed this same dream with me only to have their hopes and enthusiasm crushed by an industry that really doesnt support or like young entrepreneurs opening insurance agencies.

Several weeks after the discussion, the issues I knew existed were confirmed in a lengthy email message I received from a young man wanting to do exactly what my son sought. He, too, wanted to open his own agency. His name was Anthony, and he had worked years to get his own agency open and running successfully.

He ran into many roadblocks in his effort. The most significant was his inability to get agency appointments so that he had companies to represent. Although everyone in our industry is concerned about the lack of young people coming into it, I dont believe that extends to young people who want to open their own agencies. As many of us know, and Anthony found out, companies are not interested in appointing agents without a proven track record and some significant volume. The catch-22 is that unless you secure one or two company appointments, you will not be able to compile a proven track record and generate significant volume.

The industry must develop a way to offer young people the opportunity to open and grow their own independent insurance agencies. I realize there are some drawbacks to appointing agents without a proven track record. I also realize a number of new agents wont make it and will fail. Still, I believe it is important we make the opportunity to open and grow a new agency available to young people. Owning your own business and being your own boss is a part of the American Dream after all.

Not long ago, an agent told me about a mentoring program that assigned several new young agents to independent agent mentors. The new agents received a sub code appointment through the mentoring agent, enabling the mentor to earn some income during the process. The established agent offered the new agent knowledge, guidance, and support in growing an agency. They, along with the companys marketing staff, helped manage growth and maintain focus on their goals. What a great idea. Unfortunately, the program was shut down because the company was unable to find enough mentoring agents and show sufficient success to justify continuing the program.

Currently, the only way to become an agent and build a book of business is to be a producer at an existing agency. In most cases you will not own your book of business, and will have to sign a non-compete clause that keeps you from taking your book of business and starting your own agency. Being a successful producer in an agency is not a bad thing, however it doesnt work for the young person who has the entrepreneurial spirit and wants to build his or her own business.

I believe the industry should offer those young people that want to create and grow their own independent agency the opportunity to do so. There must be some way to structure a program to allow new agencies to open and be successful. It would support our industry objective of bringing young people into the insurance business. It also supports our industrys objective of ethnic diversification, as many young people looking to start agencies in metropolitan areas come from various ethnic backgrounds. They have an interest in opening an agencies that serve their communities. I believe carriers, independent agents and their associations could work together and develop a program that gives young and aspiring entrepreneurs the opportunity to open and successfully run new independent agencies. I know I would like to be part of such an initiative. Id be interested in hearing from agents and companies who would also like to get involved.

As IIABNY member advocate and assistant vice president of member programs, Jamie Deapo acts as communicator between agent, company, and trade association. His 15 years of experience as an independent agent coupled with a background in underwriting and marketing for insurance companies has given him a well-rounded perspective. A daily dose of conversation with independent agents from every corner of New York helps him understand the issues and concerns of the day. Deapo is also the outspoken voice on IIABNYs Word on the Street Podcast. Listen to these candid conversations at www.iiabny.org, by clicking on the News link on the left-hand side of the homepage, then Newsletters and Publications and Word on the Street Podcast.