How to Become an Independent Insurance Broker
An insurance broker is a very rewarding position but also requires a lot of effort to get it started. The way you set up your insurance brokerage and the types of insurance you offer makes a difference on how you get started. Some brokers offer their services strictly online. Traditionally most brokers use a brick and mortar office, and service the customers face to face. Property and casualty insurance brokers normally have a more difficult time finding companies that offer them contracts. For the representative that simply wants to sell employee benefits or life and health insurance, it's easier.
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Things You'll Need
- Funds for testing and training
- State insurance application
- Contract with an insurance company or several companies
- Computer
- Paper and office supplies
- Vehicle
- Briefcase
- Premium account
Instructions
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Find out your state requirements for licensing. Most states require a test and classroom hours before you apply for the license. See Resources to find the Department of Insurance requirements for your state.
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Pass the test with a 70 percent and fill out the application for the state license. Make certain you include all pertinent information, even if it's negative. The state requires you to include the information on the application and sometimes makes exceptions. They do background checks so you can't hide anything. Your license may come in the mail or online.Most Departments of Insurance offer a printable copy for you online.
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Establish a premium account. This account has to be separate from your own bank account. Most companies make it easy on you by requiring all checks made to them.
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4
Contact several companies and inquire about their products. You'll have to fill out applications to qualify to sell their products. Most life companies use the same scrutiny as the insurance departments, so if you received a license, you'll probably receive a contract. There are exceptions. In cases where the companies pay for some of your office expenses, you often need to have a good sales record of accomplishment.
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Decide how you're going to market the products and which ones. Some people start out in a specific market such as couples with new babies or employee benefits. If you select a specific market, purchase lists of names. Dunn & Bradstreet is probably the best know supplier of names.
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Get out and work. Prospecting for clients is the hardest part of the job. You have to know a sales presentation inside out but it won't help if you have no one listening. List all the people you know and contact them to let you know you started a new business. Cold call on business in your area if you select employee benefits to sell. Ask for referrals.
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Make copies of everything you sell, record all your expenses and keep a mileage log. Tracking your income and expenses is almost as important as sales. You need to be a good businessman to run an agency. Initially, you may lose money until you establish your clientele.
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