How to Start an Insurance Agency
If you want to know how to start an insurance agency then you should note that it is the same as starting a business. You need a solid business plan if you want to successful insurance agency. Starting a new chapter in your independent journey can be exciting. Also, it is a great investment to starting your own insurance agency. As per the Insurance Information Institute, in 2019 there were a total of 5,965 insurance carriers in U.S. There are many agents who are shifting towards insurtech approach.
Even if you already have a property and casualty insurance license, if you want to operate your own agency then you should have a general business license. You have to commit to your make your insurance agency successful. Before you learn more on how to start an insurance agency in Atlanta, you have to ask yourself a question. Are you ready for the commitment and sacrifice?
Tips from Professionals on How to start an insurance agency
- Make a business plan: Your business plans should include your goals, risk assessment, financial plan, and a marketing plan. Also, while devising a business plan, you should also know what your agency structure will be like. Is it a franchise model or insurance FMO model? As an insurance producer, you have to jot down every small detail on your business plan as it acts like a guide.
- Register agency and get a Tax ID number: You need a Federal employer identification number (FEIN) when you register for a business. Also, you should contact Georgia’s state insurance commissioner office and register. In addition, you should get business licenses and permits to function legally.
- Insure your business: An insurance agency should get an E&O or General liability insurance. It is important as it protects your business. Also, the state of Georgia requires it. If you want to know how to start an insurance agency in Florida then do check out the state requirements.
- Get these designations: If you are a licensed insurance agent then to open an agency, you have to get these standard-bearer designations. They are: chartered life underwriter, registered health underwriter, chartered property and casualty underwriter. In addition, you can even get an AAI designation to elevate your knowledge. An AAI designation or accredited advisor in insurance helps you to broaden your knowledge of insurance and provide excellent customer service.