Insurance agency?

Question

so how do you start an insurance agency? is it hard? about how much money do they make a year? if you any other info that would be great.

Answer 1

It really depends upon the type of insurance you plan on selling. If you are going to sell property and casualty insurance it is very difficult (if not impossible) to get contracts with first tier companies. The companies expect significant premium volume commitments and will not appoint an agent who is starting from scratch. If you are unable to represent well known and established companies you are at an extreme disadvantage.

On the other hand if you plan on starting a life and health insurance agency insurance company appointments are easily obtained. But unlike property and casualty insurance the commission structure of life insurance is front loaded meaning that you have high initial commissions with little or no renewal income. That means you have to be constantly prospecting for new customers.

Either way it is not easy better to look into an established agency where you might work out some ownership interest.

Answer 2

Starting a "scratch" agency isn't hard, it is next to impossible.  License, appointments, insurance, employees, fixtures and equipment are all required BEFORE you can get your first client.  Then comes marketing ,service, payroll, taxes, audits and regulations that would choke a mule.  Get the picture?  

By the time you pay everything and everyone else, you are lucky to have much left over for yourself.  Commissions are steadily declining while the insurance companies are pushing more and more of the policy writing and service requirements off on the agency.  

Perks that were available to agencies a few years back no longer exist.  Pressures of running a small business can lead to long days and short nights.  

But OH THE JOY of owning your own business!!  LOL