Starting an insurance agency can be a rewarding venture if done with the right approach. It requires a step-by-step process that, if adhered to, can yield exceptional results, as described in the video. Here’s an overview of how to start your insurance agency.
Defining an Insurance Agency
An insurance agency or brokerage is an entity or person authorized by an insurance firm to sell its policies. In simple terms, an agency serves as an intermediary between an insurer and the insurance buyer. Starting an agency from scratch requires a deep understanding of the industry, meticulous planning, and enough startup capital.
Understand the Market
A good understanding of market dynamics before starting out your agency is essential. Before taking the plunge, you need to have a marketing plan, some background in sales, and a business plan. Once you have a firm understanding you can now go into the hands-on parts of starting your insurance agency.
How to Start
Now that you have the requisite experience, you need to have the following requirements before starting:
- Knowledge of how to handle sales
- One to two years of experience in an insurance brokerage
- An insurance license & approval of the license
- Errors and omissions insurance
After you’ve ticked the checklist above, get an office and get started.
The Process
Just like any other business startup, you need a lot of patience putting up an insurance agency. It can be easier said than done. The key is to start small but keep aiming big. You need to hit the ground running, especially when pushing sales. For the first six months, there may be some stumbling blocks, but with enough determination, you’ll come out on top.
Lastly, know that insurance is a compounding business, so be patient and don’t lose focus. Understand the ins and outs and keep knocking on doors until you get your first nod. Over time, you’ll see everything fall in place and start to rake in the big bucks, but until then, don’t give up.
