This tool kit is designed to educate and assist in starting an independent agency, but it is up to you to make it happen!
Building an agency from scratch is possible.
If you're successful, the rewards are considerable. The ability to call your own shots, a healthy return on investment in the form of owner's equity, and the satisfaction of being in a business that protects people and their valuables.
Starting An Agency From Scratch is Challenging, Yet Possible!
Here are a few critical success factors necessary to make your new agency successful!
While an independent agency is not capital-intensive relative to other industries, you can expect to need approximately $40,000 to $50,000 in start-up capital to pay for office space, equipment, furniture, E&O insurance, and marketing. This doesn't include the resources necessary to live on while you build your customer base.
Thorough Technical Expertise
Customers are placing risk management needs in your hands. You need to understand the products you're selling thoroughly. Depending on the lines of business you intend to offer, there are scores of different policy forms and coverage implications. Add to that the importance of understanding the risk management process, and you have a very knowledge-intensive profession.
Quality Sales and Administrative Skills
Some have excellent selling skills and can make great insurance producers; others are great at administration and service. Starting an agency from scratch will require both skills until you are large enough to hire assistance.
Access To Insurance Companies
You can get licensed but you can't sell insurance without access to insurance companies and/or managing general agents. For property and casualty insurance, most companies are looking for a long-term relationship. Getting an appointment usually requires, among other things, experience in the business, a track record of successful marketing and selling, a marketing territory geographically desirable to the companies and a solid proposed business model.
This tool kit will walk you through the steps necessary to get started and provide vital resources to help you implement measures where possible.
For more information, check out the Starting An Agency Toolkit from our insurance experts that cover the following topics:
- How To Get Started - The Groundwork
- The Business Plan - Five Things Every Business Plan Should Address
- E&O and Legal Criteria
- Access to Insurance Markets
- Agency Management System
- Workflow Procedures
- Recruit Network
- How the Association Can Help