The insurance broker activity can be gratifying and can be financially satisfying as well if you start it properly. When you begin the insurance broker activity, you will start to interact with a lot of people whom you will try to convince to accept your assistance. This means that you will need to use your own communication skills, making sure that they are properly developed.
People like to talk with good communicators, people that are pleasant and not too pushy. Under these circumstances, it is quite clear that a good insurance broker must also be a well organized person, capable of transmitting a clear message not only in person, but in writing as well. A good insurance broker is always curious to find out what is new in the insurance market, what the newest trends are and what insurance products have been launched. You can find out if you have these necessary traits of personality if you take a psychological assessment.
Starting an insurance business also means investing some money. Your financial status should be a solid one, as you might need to get some money from the bank. And in case that you were wondering about it, you will need some money in order to have a website created for your new business, as well as to promote yourself and the insurance packages that you intend to sell.
When you start your insurance business, nobody will know you and nobody (excepting your relatives and friends, maybe) will want to buy insurance coverage from you; this is why you need to invest some money in marketing and advertising.
Some brokers have their own offices where they meet with their clients; others choose to go to their clients’ houses. You need to decide if you will need an office or if you want to work from home, as owning an office usually means paying regularly a large amount of money for renting the space.
There are many types of insurance packages that you could sell to people. Large corporations sell all types of insurance policies, but you need to decide how you will start, the type of insurance you want to sell to your potential clients. As an example, you could begin by selling home insurance packages, life insurance, car insurance, etc. The idea is that in order to be a successful broker, you need to specialize in one domain and become an expert for that particular domain. For example, you could become a specialist in jewelry insurance and be recognized for this in your city.
Most specialists will advise you to create a business plan, estimating the approximate amount of time you need to devote to this new activity each week, the money that needs to be invested into it, the prices for the insurance packages, the monthly regular expenses, and so on. This way you will, at least theoretically, see if what you plan to do is going to bring you the desired profit or not. In addition to this, the business plan is capable of helping you see if you need financial help or not, and if you are going to be able to meet all the financial obligations.
You also need to get an insurance license, as this is required by the laws and will bring you more credibility. Since the laws are different from one state to another, you need to study them in order to see exactly what the legal requirements are in your area.
There are classes that you should attend to and exams you need to pass in order to become a certified insurance broker. The license you are going to receive will need to be renewed on a regular basis; this means that you will have to take some classes and pass some exams periodically. The laws require you to have a business license and a federal tax I.D. number, as you need to start building your corporate identity as well.
All these elements will surely help you start on the right foot, obeying the law and owning all the necessary papers. And since starting an insurance broker business is a low risk activity, everything can turn out to be a fun, profitable endeavor on the long run.
George Pirvu, the author of the article, works as an insurance business consultant for Millenium Asigurare RCA, an insurance broker in Bucharest, Romania.