How to organize an insurance company

Opening your own insurance company can be a long and complicated process, requiring years to get financing. If you want to create an insurance agency, then at the very beginning you need to take all the necessary measures to complete this quickly and immediately begin to make a profit.

Instruction manual

1

Decide on a specialization. Most agencies provide various types of services, including health, life, car and property insurance. If you plan to organize your own insurance company, then it is better to specialize in all areas.

2

Get a license for this type of activity. Before you get the right to sell insurance, you must successfully pass several state exams. These exams test knowledge of various types and plans of insurance. After completing the test, you will receive an insurance license.

3

Gain experience as an insurance agent. New insurance agents are not eligible to open their own agency. You will need experience of five or more years. Therefore, you can get a job as an employee of an insurance company or become an independent contractor to get the opportunity to work from home on your own schedule.

4

Get a corporate insurance license. This must be done after you get the right to open your own insurance company. The license will allow you to sell insurance products under the brand name of your company.

5

Apply to the bank for a business loan. Unfortunately, opening an insurance company is not a cheap activity. This could cost $ 100, 000 or more. You will need an excellent credit history, extensive experience and a well-designed business plan to get this amount.

6

Get a franchise. There are various ways to open your own insurance company. You can join one of the franchises and work as an independent agent of well-known insurance companies. Some franchises offer private financing.

7

Open a private company if you do not want to become part of the franchise. You need to establish relationships with insurance brokers and financial companies that will provide you with insurance products.

8

Choose a place. After you get a business loan, it's time to choose the location of the agency. Choose a place and rent a room, which is located in a busy area of ​​the city.