7 Tips for Starting an Insurance Agency

If you’ve decided to start your own insurance agency, congratulations! This is an exciting time, when you’re at the beginning stages of what will hopefully be a very rewarding and successful journey. But you need to know that, while starting an agency from scratch is possible, it’s not going to be easy, and you’ll need some guidance So, before you jump right in, there are some things that you will need to consider in order to protect your assets and investments, as well as to make sure your business doesn’t flop. 

1. Figure Out What Products You Want To Sell

This is the first and most important step when starting any business. There are a lot of different types of insurance you can sell, so before deciding to start an agency, think about what you want you’re interested in. Do you want to focus on health insurance? Medicare? Commercial insurance? All of it? Knowing this ahead of time is important so you can get a license for the products you want to sell, and so you can also devise an effective marketing strategy. 

paper with a red certification ribbon on the bottom
Before you can start selling insurance, you have to make sure you have the proper licenses.

2. Get the Proper Licensing

In order to sell any insurance products, you will be required to train for a certain number of hours and take a licensure exam. You will need a license for each type of insurance you sell, as well as a general business license; this step is extremely important, because you need to make sure you are in compliance with all regulations when selling insurance. 

3. Plan Your Business

Create a detailed and well thought out business plan that includes a specific set of goals you want to achieve. Your plan should include details on how you are going to finance your business, such as with a loan from a local bank or credit union – and any creditor will want to see your business plan before approving you for a loan. You should also sit down and work out all the expenses related to starting a business, determine who your target market is, and decide what you will name your business. 

4. Decide On A Marketing Strategy

Once you’ve planned out all the basics, it’s time to start working on your marketing strategy – after all, you need to attract customers to be successful at selling anything! And, since customers won’t come knocking on your door, you’ll have to find them with a targeted marketing strategy that takes into account who your ideal customers are based on the types of insurance you sell, and includes in-person networking, social media, direct mail, email campaigns, etc. 

5. Protect Your Businesshand with a bubble over it with a person in a business suit and a building behind him

Don’t forget that you’ll also need to protect your business with commercial insurance! You should at least have general liability and cyber insurance, and in some states you will be required to have Professional Liability Insurance or Error and Omissions (E&O) Insurance to register your business. Having these policies will protect you against system hacks, mistakes made by you or employees, or other unforeseen events.

6. Get Software and Management Systems

When you begin selling insurance to leads, you will need a system to help you manage your clients, so consider a software system that can help you with scheduling, appointments, and keeping up with leads and customers. A software and management system will help you become more efficient and effective by reducing time on tasks, thus helping you become more successful.

7. Get Access To Insurance Carriers

After you get your licenses, create a business plan and a marketing strategy, and get set up with insurance and a software system, the last step is to get access to insurance companies in order to have products to sell. You will need to get an appointment with carriers, and be ready with all of the above: they will want to look at your marketing plan, a solid business plan, as well as proof of licensing and E&O coverage. 

After completing the above steps, you will be ready to start your insurance agency , and begin selling insurance! Just remember, selling insurance is a customer-service-based business, so after attracting leads through your marketing, you will need to put your knowledge and selling skills to the test. Prospecting isn’t easy when you’re just starting out, so if you find that you need some help finding leads, work with a reputable company like Benepath. When you work with Benepath, receiving reliable, exclusive leads is the easy part: we provide you with real-time leads through a secure process, and give you a customized thank you page so your leads will be ready for your call. To get more information, fill out the form above, or call 866-368-0377.

Getting An Appointment With A Direct Carrier

Whether you are a new insurance agent, or an established one, getting an appointment with a direct carrier is critical to your success. Getting an insurance carrier appointment, or being appointed by a direct carrier, means that you have authorization from the insurance company to act on its behalf. It allows you to have access to the carrier’s products, discounts, and other exclusive deals. It is pretty much everything you need in order to grow your business and revenue. It definitely takes effort on your part to secure an appointment with an established carrier, but we’ve got some advice for getting you there as quickly and as easily as possible.

paper with analytics on it and another piece of paper with resume on it on a table
You need to be prepared with a solid business plan to present to the carrier you want to work with.

You Need a Business Plan

In order to show carriers that you’re serious about selling, you need a solid business plan that shows how you plan to progress over time. Showing carriers that you have goals – and ways to attain them – is a great way to make you stand out from the crowd. Use a template or other online resource to write your plan if you’re not sure where to begin, and keep revising it if need be. 

You Need Good Marketing 

Most carriers want to see that agencies and agents have a solid business plan, but they also want to see that you have a proven track record, experience, and good marketing. They are looking for agents who will generate more business for them, and not simply move one or two customers over to them, so you need to show promise, growth, and profitability. Make sure you are able to produce records to back everything up. Remember, priority is given to those who can demonstrate long-term profitable alliances with carriers – the more appointments you get with direct carriers, the more desirable you will look, so keep trying to build on your successes. 

network of people connected by lines in a circular motion
Joining a network will give you the ability to get associated with more carriers.

You Should Consider Joining A Network

As the saying goes, “there is strength in numbers,”. This saying holds true for agents. It can be easier to get an appointment with a carrier when you’re part of a large network, so joining one is worth looking into. Joining a network is a great option for new agents who may be worried that they don’t have the proven track record to attract carriers.

You Should Look Into Wholesale 

If you do have problems getting an appointment with a direct carrier, then you should consider a wholesale carrier. Wholesale carriers are more open to working with inexperienced or new agents. Once you get some experience, and you have built up your business with a wholesale carrier, then major carriers will begin to consider working with you.

You Should Research The Carrier

Most carriers will provide a list of requirements on their website that they expect you to meet in order to obtain an appointment with them. Do your research and make sure that you meet all of the carrier’s requirements before beginning the process. african american man writing down in a notebook with a laptop in front of him

Getting an appointment with a direct carrier can be a long and sometimes difficult process, but it’s a necessary step for growing your business. Securing an appointment with a direct carrier will open up many doors for your business, and lead you towards success and profit.

Testimonials

What Our Core Clients Say!

Get Your Free Guide to Selling Exclusive Insurance Leads!

Hey there, I’m Ben, your personal assistant. What brings you to Benepath’s website today?