Independent Insurance Company Operation: Building The Business

Posted on: 29 November 2018

As an independent insurance agency owner, you may hope to insure under-served markets or have unique ideas about how to insure those in your community. However, because you're a new business entity, challenges aren't uncommon. How can your independent agency prosper?

Join an Agency Network

One reason independent agents have such a difficult time is that large insurance carriers refuse to work with new, freelance agents. There are sometimes requirements you'll be unable to meet on your own. This can mean that your insurance offerings are meager and don't serve your clientele as fully as you'd like. Agency networks can fix this problem.

Agency networks are established groups that usually already have relationships with major insurance carriers. As such, when you join a good agency, you will be operating under their umbrella and therefore will be able to provide your own customers with big name insurer policies and better coverage. In exchange, the agency may ask for a percentage of each policy sale or pay you on a commission basis. Joining an insurance network saves you time and can make your independent company more money.

Get More Certifications

Generally, more education opens multiple professional windows. Even in the insurance industry, the more certifications earned, the better you'll serve customers. Of course, you shouldn't be seeking further certifications in a willy-nilly fashion. For best results, it's probably wise to consider your primary target market's lives and needs when selecting particular certifications to pursue.

Use Insurance Aggregators

Before you sold insurance, did you ever seek online insurance from a general site that gave you quotes from different companies? If so, you likely used an aggregator. Aggregators give searching customers information that matches up with their needs and background. Linking up with an aggregator, therefore, can send warm leads right to your insurance agency; whenever anyone fitting your target market inputs their information, the aggregator will list you as a possible match.

Use Social Media

The traditional ways of selling insurance still work, but the internet can sell insurance for you even when you're sleeping or busy with existing customers. Your website and the details there will work all day for you. However, you'll still need to work on social media sites to attract new prospective policyholders. Answering questions, responding to comments and posting insurance information on favorite social media websites can generate enough interest that people click over to your site and contact details.

Your independent insurance career can end up assisting and protecting more customers each day with these agency suggestions. Talk with other independent insurance agents and consult agency networks for any support needed.

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Little-known Insurance Tips

While I have had auto insurance ever since I bought my first car at 16 years old and home insurance ever since I bought my first home several years ago, I have to admit that over the years I knew very little about insurance. I tended to just look at the price of the coverage and sign the paperwork without really looking into the pros and cons of each policy. After my friend was in a car accident recently (thankfully, she is okay!) and she said she had to pay for some of the damage to the other vehicle out-of-pocket even though she had a minimum state coverage auto insurance policy, I decided to put a lot of careful research into insurance policies and what they really offer. I want to help others by sharing the information I have learned on a blog. I hope I can help you!