How to Start an Insurance Agency

Keep all clients on file and check in on them often to help start your own insurance agency.

You love talking to people and selling things and insurance is a commodity that’s always going to be in need. You can sell it to make a comfy living, and even start an insurance agency, with a few simple tips.

Things You'll Need

• Insurance license(s)

Instructions

1. Figure out what type of insurance you want to specialize in. It can range from life and health to auto and home. Auto insurance is probably the most in demand but it doesn’t have the greatest compensation. Life insurance, especially if you find clients who want a $1 million policy, will give you great compensation. People are not required to buy life insurance as they are auto insurance.

2. Get licensed in your home state for that type of insurance. This means passing a written exam for each type of license. Contact your state’s Department of Insurance to find out exam schedules and obtain the materials you’ll need to study. Your license will have to be renewed, usually every two years, to make sure you keep abreast of current laws.

3. Start selling insurance to build up clientele. This can be done through word of mouth, advertising and cold calling. You’ll be surprised at how far word can travel through friends and relatives that you are now selling insurance. You can also mention your new vocation in social settings without being obnoxious as long as you don’t corner people and try to sell them insurance on the spot.

4. Expand your own selling power once you have a host of regular clients by getting licensed for other types of insurance and in other states. Each license requires you to pass a written exam. You can base your new licenses on your clients’ needs. If one of your life insurance clients needs home insurance, for instance, you can branch into that field. You can also find out if clients have relatives living in other states who need insurance.

5. Find other insurance agents to work with you. If you keep hearing about an agent who is excelling, by all means contact her to see if she’s interested in joining a new agency. You can also network with new agents before and after the insurance exams. You can expand your selling power by choosing agents who have different specializations, so no one person has to hold all licenses.

6. Get business cards, brochures and stationery printed up. Send out letters of introduction to your current clients and addresses you’ve collected through your networking. You can also rent an office to use as your business base or everyone can work from home. Hold regular meetings with all you agents to share tips, clients and gauge how everyone is faring.

Tips & Warnings

• Be honest. Insurance agents have a bad enough reputation in general, make people realize that reputation is wrong.

• If it’s easier for starters, you can join an agency until your business starts to take off, then branch out from the agency to build your own.

• If you need help studying for the insurance exams, you can call on current agents you know for help or join one of the many classes offered by private companies that help people study for insurance exams.

• Keep your clients happy and make sure their policies are continuing to fill their needs by contacting them at least once a year for a review.

• Only partner with other honest and upfront agents. Check everyone’s licenses to make sure they are valid.

• Do not try to sell insurance without a proper license.

• Do not blatantly steal clients from other agents. Your tactics will catch up with you. The last thing you need is a dishonest reputation as an insurance agent.