Become Insurance Agent: How To Start A Business In 2022?

Last Updated: February 3, 2022

Often, people are not likely to be familiar with every aspect of a particular thing, which is normal. Likewise, in the insurance business, a little guidance does not harm the agents. If you want to become an insurance agent in Florida, we have you covered!

The basic requirements to open an insurance agency are cost, time, energy, and in-depth knowledge about your business. However, these things will only help you start the agency, but you require ideas and concepts to run your agency.

Here we have a few short-cuts that will help you build your independent insurance agency with much diligence and effectiveness.

Why Become an Independent Insurance Agent? 

Independent insurance agents are the agents who represent multiple carriers. They can choose the insurance lines they want to sell. It could be a personal line (health, life, auto) or a commercial line (liability and property & casualty). They have more flexibility and independence compared with captive agents.

According to the Bureau of Labor Statistics, the median annual wage for an independent agent as of 2020 was $52,180. In addition, they also earn commissions through the renewal of policies that increase their salary.

Records have shown that clients prefer to take advice more from an independent insurance agent. This because they have more on their plate to offer. Since they represent many carriers, their products and variations are more unlike captive agents’.

Steps for an Insurance Agent to Start an Agency When You Become Insurance Agent: 

Book of business

Although a business book could may cost you $500,00 or more, it could be one option for you to consider. When you buy a business book from an existing insurance agency, you will handle and have control over the agency. You can also type “insurance agent near me” on your search engine and find local agents who might want to sell their books. 

Agency model

Another option is to become an independent agent through an agency model. These agency models provide you with all the operational assistance your agency requires. Alongside, you can concentrate on selling insurance smoothly.

Further, there are two agency models you can choose from:

• Franchise Model

The franchise model provides required assistance to your agency and allows you to own your agency and grow your book according to your convenience. Also, the franchise model will allow you to perform insurance marketing easily. However, the fees might be more, but the benefit is that you are associated with an established brand that will add value to your company.

• Insurance FMO Model

You can consider working under an FMO model that enables you to earn a commission with appropriate splits. You can attain the operational support required by your agency at the same time. Usually, the commission split is 70/30 between the FMO and the agent.

Key Takeaway from Becoming an Insurance Agent

All in all, as an agent, you must possess knowledge of marketing for insurance so that you can gain leads and convert them. These are the options available for you when you choose to become an insurance agent in Florida, and you require a way out to run your agency smoothly with proper guidance and profitability. Additionally, according to recent reports, the FMO model has been rising its demands, and the outcomes are positive. Therefore, it would be the best option to choose for your company to excel.

You can also explore how much does an insurance sales rep make, as the prospects of an insurance agent are very high.