How To Start Up An Insurance Company
How to start up an insurance company is a great question when you start your independent journey. As an independent insurance agent, you should gather your finances, make a solid business plan in order for you start your own company. You have to have a zeal of making it successful.
People who are interested in a particular thing do not necessarily know everything about it. There is always space to learn and grow. Similarly, it can be tough for you as an independent agent to open an insurance agency in the insurance industry. To guide you and assure you of your kickstart to your agency, we have some short-cuts that will make it easier for you if you are wondering how to start an insurance agency in Florida.
Why Become an Independent Insurance Agent?
Independent insurance agents are agents who represent multiple carriers. They have to freedom to sell personal and commercial lines of insurance such as life, health, auto, liability, and property & casualty. Unlike captive agents, independent insurance agents enjoy the flexibility and independence all why growing personally and professionally.
According to the Bureau of Labor Statistics, an independent insurance agent’s median annual wage as of 2019 was $50,940. Further, they earn commissions through renewals that help them increase their income.
Clients usually seek expert advice from insurance agents as they will not know how insurance works or which deal might be the best for them. Clients often wonder if there is an insurance agent near me and prefer advice from independent agents more than captive agents as they have a wide range of policies to offer for clients. So, read this blog to find out how to become an independent insurance agent and start your own agency.
How to start an independent insurance agency in Florida?
Start an insurance agency through a Book of business
The first option is to buy a book of business from an existing insurance company, which will allow you to handle your agency while owning it. However, depending on its profitability, it may cost you may be costly as from $250,000 to $500,00, or even more
Become an independent agent through an agency model in Florida
The second option is to become an independent agent through an agency model. There are various models available that provide support and assistance for your agency to take the right turn.
- Franchise Model
The franchise model provides you with operational assistance alongside access to insurance carriers. However, the fees could be high. The bright side of it is that your agency is associating with an established brand that will add value to your company. But on the other hand, this model does not provide agents with much space for growth due to their contracts’ non-compete clauses.
- Insurance FMO Model
In the FMO model, generally, they split the commission with their agents. The split between the FMO and the agent will be around 70/30. In some insurance agencies, the split is very advantageous. For instance, In Covered by SAGE insurance agency, the commission split is commendable in comparison to other insurance agencies. They provide a split of 80/2- for the first year and 50/50 for renewals.
Key Takeaway on How to Start an Insurance Agency in Florida
It might be an overwhelming experience for independent agents as to which option they should select. Hence, according to recent reviews from agency models, the FMO model has shown positive results compared to make it easier for you. By choosing this model, you will know how to start an insurance agency in Florida with no trouble. Also, find out how to start an insurance agency in Jacksonville in our other blog.
Lastly, an agency must also focus on effective insurance marketing because the industry has become very competitive. Using proper platforms while marketing for insurance can help your agency grow faster.
When you know how to start my own insurance business, you can take up more courses to sharpen your skills. It helps you stay on top of the game.