Starting insurance business?

Question

I want to start selling P&C and life insurance but dont know which companies should i work for. Can someone tell me teh pros and cons? and should i be a broker?

Answer 1

It depends on what you want to do. Brokers act for the client and advise them on what kind of insurance they need. I would expect that there is a certain amount of training required to fill this role. On the other hand, agents of insurers (who are not underwriters themselves) are basically just a sales channel to push product without requiring any particular expertise except an understanding of the product they are selling.

You should also check what laws may apply to regulate  these activities. In Australia, we have quite extensive requirements around holding licences or being authorised by someone who holds a licence, and also around the management of conflicts, disclosure of remuneration, requisite training, documents required by law to be given, trust money etc. If you just jump in you may find later that you are in breach of relevant laws in your jurisdiction. In Australia, at least, penalties can be quite severe, including jail time, hefty fines, and a lifetime ban from engaging in financial services. It is worth checking this angle out to a) avoid any penalties and b) to see what your initial expense may be in complying with any regulatory requirements.

Answer 2

For P&C I would get a job working in an existing office for a large carrier like Allstate or State Farm. For Life You should check out New York Life, they are widely considered to have the best training in the business. Keep in mind only 2 out of 10 agents survie the first year in the life business. The P&C route would give you a salary as you learn the busniess. A broker has to have a much higher level of knowledge than a new person in the business. You could become a broker after a few years in the business.

Answer 3

Find a mentor in this field that is near you - someone who can teach you and make you grow. This is a great business and one few people understand. I am on the P&C side and as long as you are pro-active with your customers, you keep getting residual income after only making the sale once.

Answer 4

Gee, you really picked a hard business to get into.  My advice is to see a multi-line agent (life, health, home, auto, etc., etc.) near you and ask his recommendations.

Answer 5

takes alot of motivation

Answer 6

no

Answer 7

No.  You should walk into a local, independent agency, and ask them to please take you on as a producer for 5 years, for a commission split, so they can teach you everything you need to know, and you can see the pros and cons for yourself.