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Business Valuation of Insurance Agencies & Brokers

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From Quick Guide: Insurance Agency Guide

Summary: Insurance agencies and brokers are valued as businesses by companies like Standards and Poors, Moody or AM Best, which give letter grades to insurance companies. Find out how much experience an insurance agency has with tips from an insurance agent in this free video on insurance.

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By Vic Schumacher
eHow Presenter

Vic Schumacher is part of HPE Financial Services, a brokerage insurance company representing all major carriers. He works with businesses, families and individuals, helping them to...read more

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Video Transcript

"Hello, my name is Vic Schumacher with HPE Financial Services. We're going to talk about how to evaluate different types of insurance and how do we evaluate brokers. To understand insurance you must realize exactly what insurance is. Which is the replacement of an uncertainty with a security or with a certainty. It's piece of mind in case something happens. You want to try to figure out the value of a brokerage agency. You can go to Standards and Poors, you can go to Moody, you can go to AM Best which are all companies that put ratings on these companies. Those ratings are based on financial capabilities. Strength of the company. They can be an A, a B, a C, a D. A double A whatever the size or the strength of it is. If your talking about Brokers, the way to evaluate a Broker and the Insurance Agent themselves is to find out how much experience they've had. How long they've been in the business. What are they trying to accomplish. Are they trying to sell you something or are they trying to be a consultant for you. Evaluation depends on your own piece of mind and your own security. My name is Vic Schumacher. The company is HPE Financial Services. Helping people everyday"

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