4 Tips For Starting A New Insurance Agency

Whether you're an experienced insurance agent or just received your license, you may be thinking of opening your own agency. Working for yourself in a common goal in those with an entrepreneurial spirit. Here are four points to keep in mind as you embark on your adventure of starting an insurance agency.

1. Have A Backup Plan For Income

Insurance agents make money from commission on premiums and bonuses. If you're a brand-new agency, it will take you some time to build a client base and start bringing in residual income. Therefore, it is important you have savings, a part-time job, or a home situation that will allow you the time you need.

2. Join Professional Groups

Just because you want to sell insurance through specific carriers doesn't mean they will let you. Major insurance companies like to work with other major agencies. You will likely have difficulty convincing one of the big guys to let you play.

The way new or smaller agencies get around this is by pooling together in what is often called a master agency. It is also sometimes called a cluster agency or group. This is an association of independent insurance agencies who work together in order to be recognized by the insurance carriers.

Another group you want to be sure to join is the National Insurance Crime Bureau. According to the Federal Bureau of Investigation, the cost of insurance fraud, excluding health insurance, is more than 40 billion dollars annually in the United States. The insurance industry polices itself as they obviously have a vested interest in protecting the integrity of their industry as well as both their bottom line and their customers. Insurance fraud is a crime, and the industry receives help from the National Insurance Crime Bureau and other groups that assist the respective state bureau of investigations' fraud bureaus.

3. Join Local Community Groups

Because being an insurance agent is largely sales, successfully networking with other people can help you land new clients and in turn, add to your revenue. Becoming a member of your city's chamber of commerce can help a lot. When people move to a new area, they often check with the chamber of commerce for community information. Many communities give out welcome packs to new residents, and in addition to municipality information, they often include a member directory of local businesses.

4. Don't Forget The Power Of Marketing

Having a strong presence on Facebook and other platforms can make a big difference between customers choosing you and another agency. A website that is mobile-friendly and provides an informational blog with well-written web content can also keep you high in Google's search algorithms.

For more information on how to start a casualty insurance agency, contact your local insurance group.

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