As an increased number of people are going for insurance in the recent past, there are plenty of career options available for aspiring insurance professionals. There are different ways of joining the insurance profession. One way is to become an independent insurance agent. Unlike exclusive agents, who work with an insurance firm and are entitled to sell policies for a particular company, independent agents are associated with one/more insurance companies and have their own office or work from a home setup.
Basic requirements
There are certain basic requirements of becoming an independent insurance agent. In the US, the requirements of becoming an independent insurance agent vary from state to state. You should clear the state insurance examination to obtain the standard insurance license and conduct your business only from where the license is obtained. Although as agents, you do not require a formal college/university degree, it is always useful if you come from commerce, economics, finance or a related background.
Selecting area of specialization
For an independent insurance to be successful in the market, it is important that you should operate in the niche market. This means that you should have a specific area of specialization. It can be specializing in offering a particular cover say marriage insurance or small business interest, or it can also be focusing on customized services. For example, you may offer home owner's insurance policies but in the form of various attractive packages that come with some discounts or health coverage only for corporate houses, and so on.
Mode of working
As far as the mode of business is concerned, there are two options available for the independent agent. One is, you can buy a franchise and start working in your own location. In the US, this would cost you anywhere between $55,000 and $65,000. You have to invest in office infrastructure, omissions insurance and association membership fees, among others. You can also have your business cards with printed logo to attract potential customers. It depends on how much you are willing to invest and your level of business acumen.
The other option is you can become affiliated to an insurance agency or more than one agency and work independently from home. In this case, you should do a thorough research on the companies you intend to work with, and find out various aspects including the brand, what kind of packages they offer, and growth prospects, among others.
Marketing and promotional activities
If you choose to become an independent insurance agent, you need to increase your visibility in the market. It is a good idea to place advertisements in the classified section of your local newspapers, billboard ads as well as send out small leaflets in your locality so that people know you are and what you do. Also have a professional well-designed website to attract customers.
It takes a lot of hard work and perseverance to become an independent insurance agent. There may be certain initial struggles in terms of getting clients and also a good return on investment, but overall it is a rewarding profession.