Probably, you think that an insurance agency is a complex business filled with tons of problems. You have to face agitated client, for example, and give the specialized insurance it deserves. You also have to deal with financial accounts of clients accurately.
But regardless of how complex it seems, starting up an insurance agency is a great idea. It comes with fascinating perks many insurance agency owners have chased before. In fact, many of such businessmen came from other corporate jobs they’ve successfully escaped.
You’ve read it right. Many insurance agents and brokers are professionals of some other corporate fields, but they choose to start an insurance agency business. That’s because of the great things it promises to them. And you can enjoy such perks by knowing how to start your own insurance agency as well.
Why you must Consider Opening up an Insurance Agency
Having some hesitations about opening up an insurance agency? Here are some big perks that will motivate you:
1. Product Advantage
Selling insurance policies has big advantages over other products. And here are three of the best leverage you can get:
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Insurance policies do not spoil, and you don’t have to stock up with products every now and then. If a person inquires about a policy, for example, you can let him think about it for few days. When he comes back, the policy is still up for him to grab.
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Insurance policy is an educated sale, meaning people need it that’s why they would buy it. Hence, you don’t need to try hard in persuading them to buy your policies. All you need to do is to educate them about your offer.
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Renewing commission is another advantage you can’t get in selling other products. This is when a client returns to you to renew an insurance policy. This means you can possibly earn several times from one policy of a client.
2. Easy Startup
Compared to many other business, it’s easier to start an insurance agency. You only have to study for the state licensing exam, pass the exam, process your business and begin your operations. You can even work as an independent agent while business application is still going on.
This makes it perfect for people who wants to change career. For example, some corporate workers and executive opt to open an insurance agency for a change.
3. Flexible and Diverse Work
Yes, you need to tackle a lot of paperwork’s to serve your clients. But you don’t have to do that all the time when you open an insurance agency. Think of going around to scout for potential clients. That means enjoying a life outside the office while aiming for profit.
As a bonus, you can hire reputable insurance agents to work for you. That’s when you can fully enjoy a flexible life with flowing profit.
4. Fulfilling Impacts
Running an insurance agency means helping people deal with anticipated or unexpected financial predicaments. All suggestions and referrals you would make will certainly create impact to clients. Do it greatly, and you’ll surely produce satisfied and happy people through your business.
Think of a family you help overcome a house fire incident. Or, a man who needs medical support after a road accident. Other long term cases are helpful as well, such as insurance for college or for retirement. That’s certainly fulfilling on your part.
How to Start an Insurance Agency Business?
Now, you see the big benefits of an insurance agency startup. Thing is, you can’t hastily open one just because you want to reap its perks right away. You must plan it carefully for best results; or else, you’re off towards big failures.
Here are few of the most important steps you must take note:
1. Get an Insurance Agent License
Begin by getting an insurance agent license which work for your state. Sign up for a course, then take the exam. Once passed, you can get your license and begin working as an insurance agent legally, or start planning about your insurance agency business.
2. Select an Insurance Product Your Agency would sell
There are various types of insurance products available such as casualties and property coverage, health and life as well as specialized policies among others. And these products are mostly classified into different labels too, such as commercial, personal or professional.
Making a choice of which to sell would help you specialize on certain products. And that would help in identifying the resources, technologies and marketing strategies you need.
3. Create a Concrete Business Plan
It’s important to plan your insurance agency business well, and put your goals into a document. This would help in driving your business, such as keeping yourself on the right track. Also, key institutions you need to connect with, such as insurance carriers and banks, require this document.
4. Fill your Needs for Devices and Platforms
Look for the best reliable hardware and software platform your agency would need. One of the most valuable platform to find is a reputable insurance agency management system. This would help you achieve an efficient operation, especially on management tasks.
5. Aim for Appointment from Insurance Carriers
You can’t begin selling without products. So, be sure to get your agency appointed by local insurance carriers. You need your business plan, proof of licensing as well as errors and omission coverage among other key documents. Then, sign a contract with the carrier, but feel free to ask for modifications if you cannot settle with some of the clauses.
6. Consider Buying Book of Business
Yes, you can start your agency from scratch. But you can purchase an existing book of business from other agencies too. Be careful, however, since it means dealing with possibly problematic policies and transactions. Also, it means you may need to serve preexisting clients without commissions.
Starting up an insurance agency sure isn’t easy. But it’s certainly worth to do, considering all the perks it offers. Just do it the right way to avoid problems later on.
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