How to Start an Insurance Brokerage Firm

Opening your own insurance brokerage firm requires total commitment, knowing that all proceeds will go directly to you. The work will be more or less the same as you are still considered an insurance agent. The difference here is that you will be in complete control of your firm.

Instructions

  • 1

    Before starting your own insurance brokerage firm, it is advisable that you get as much training and professional experience as possible. Knowing how the market works will benefit you and you may pick up potential clients on the way. Only this time, you will be catering to them personally rather than representing another firm. This way you will also know the expenses you will incur, along with the startup cost.

  • 2

    Decide which insurance companies you want to work with. Start on a small scale before shifting your focus by increasing the products and services you want to sell. There is no point indulging in too many activities at once, without having a clear understanding of each. Despite gaining professional knowledge, it is still advisable to get yourself enrolled in training programs which broaden your horizon on how to deal with future customers.

  • 3

    Determine the products and service you will be able to sell. Select those which will earn you good commissions. Contact the insurance companies and sign up with them. You will probably need to give proof of your insurance license.

    Assuming you have plenty of knowledge about selling life insurance policies, you should stick to that niche in the beginning. As your client base builds up, incorporate other products such as car insurance etc.

  • 4

    Get professional help from an accountant or other business experts on how to make proper arrangements with insurance companies. As you are new in the market, most insurers will be reluctant to work with you but having a reputable lawyer by your side will give you some credibility. Arrange a meeting if possible where you can discuss the details of contractual arrangements.

  • 5

    Choose an office that fits your needs the best. Location will be most the important factor to take into account at first, given that you would want attract potential customers. Moreover, the office area should be large enough to accommodate several clients at one time. It must include your personal room, conference room and a waiting area.

  • 6

    Start hiring. You will need an assistant who you can trust with daily work, and rely on in your absence. Hire someone who is experienced enough to handle clients.

  • 7

    Place an ad in the local newspaper, and look for other ways to promote your business. Consider a grand opening which will create awareness in the local community.

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