Starting your own insurance company can be a long and difficult process that takes 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 it quickly and immediately start making a profit.
Instructions
Step 1
Decide on a specialization. Most agencies provide various types of services, including health, life, car and property insurance. If you are planning to start your own insurance company, it is best to specialize in all areas.
Step 2
Obtain a license for this type of activity. Before you qualify to sell insurance, you must successfully pass several government exams. These exams test your knowledge of different types and insurance plans. After completing the test, you will receive an insurance license.
Step 3
Get experience as an insurance agent. New insurance agents are not eligible to open their own agency. You will need work experience of five or more years. Therefore, you can get a job as an employee of an insurance company or become an independent contractor in order to be able to work from home on your own schedule.
Step 4
Get a corporate insurance license. This must be done after you are eligible to open your own insurance company. The license will allow you to sell insurance products under the brand name of your company.
Step 5
Apply to the bank for a business loan. Unfortunately, opening an insurance company is not a cheap type of activity. This can cost $ 100,000 or more. You will need an excellent credit history, extensive work experience and a well-written business plan to get that amount.
Step 6
Purchase 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 for well-known insurance companies. Some franchises offer private funding.
Step 7
Start a private company if you don't want to become part of a franchise. You need to establish relationships with insurance brokers and financial companies that will provide you with insurance products.
Step 8
Choose a location. After you receive a business loan, it is time to choose the location of the agency. Choose a location and rent a room that is in a busy area of the city.
