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Starting an Insurance Agency

Do you want to achieve financial freedom by cashing in on a lucrative business opportunity in the insurance sector? Do you aspire to leverage on your financial skills by starting an insurance agency?

You may have wanted to become your own boss, pay off your debts and carve out a niche for yourself in the evergreen financial services sector.

What better way than to put your entrepreneurial streak to work by setting up an insurance agency? If financial freedom is your dream and financial skills are your forte, we have great news for you. Read on to find the basics of starting an insurance agency.

Analyze your Skills:

In any field of human endeavor, greatest success is attained when there is a good fit between skill sets and the requirements of the business / job. Setting up an insurance business as a small business is no different. Be sure that you have what it takes to start and succeed as an insurance agent. Some of the key skills and traits required are as follows:

  • Entrepreneurial skills: Ability to conceptualize as well as implement a business and take calculated risks in an ever changing, dynamic world.
  • Financial acumen: Ability to pick up the basics of financial principles of insurance business. This will help you to guide your clients on their insurance needs prudently.
  • Commitment: Dedication to take on the project and perseverance to ensure its business viability and success.

Specialization:

There could be different types of insurance you could sell in your agency. It could be business insurance wherein you sell auto, property or liability insurance. Or else you could sell life and health insurance, catering to the personal insurance needs of insurance. Be sure to analyze your skills, expertise, interests and aptitude before you choose whichever line of insurance you what to specialize in.

Finance:

Setting up a new business requires financial resources. Requirements of office space, communication (computer, telephone, fax), cash in lieu of salary need to be factored in. You will have to prepare a robust business plan if you plan to approach a bank for a loan to finance these expenses. A business plan would also be of help in case you are getting personal funding for this new business.

Marketing:

You have a great product and superlative service to offer. But this has to be marketed effectively. As you start your business ensure that you are able to reach out to your target audience, that is, prospective clients. Try and adopt an inexpensive but highly effective marketing strategy to ensure new and repeat business from clients. Efficient use of the media, advertising as well as word of mouth referrals can work wonders in ensuring that you are an insurance provider of choice for customers. Be careful in implementing a carefully thought out product, pricing, positioning and people strategy to market your way to success.

Cost Management:

This is one key aspect that determines the economic viability of any new business. Whether it is negotiating for materials, rent for your office, or salary of employees, getting the maximum worth for your money is essential. Be prudent in expenses as runaway costs are the bane of any business, new or old.

In essence, be clear in the basics, be passionate and creativity to make your dreams a reality! Here’s wishing you all the very best as you strive for excellence in the insurance sector.

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1 Comment

  • livhuwani said on May 5, 2016
    i would like to know everything about starting an insurance insurance agency in south Africa

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