Is it time for you to start an insurance company? Now is a great time to do so. Around the world, insurance premiums total over $4 trillion. That number will increase due to growing threats to homes and businesses.
People need to protect themselves from changing weather patterns and more frequent storms. Businesses need to plan for cyber-attacks and data breaches. You want to be there to help your clients navigate those troubling moments and more.
Do you want to know how to start an insurance company that’s built to last? Keep reading to find out.
Get Your Insurance License
In order to sell insurance, you need to have the proper licenses to do so. If you already have an insurance license, then you can skip this part and move on to the rest of this article.
Your license will be in the state where you plan to sell general insurance. There are also licenses to sell specialty insurance policies, like auto, life, home, health, or accident insurance.
Check with your state’s insurance board to make sure you have the appropriate licenses before you start your insurance company.
Decide on the Type of Insurance Business
Who do you want to help the most? That’s an important question to answer. You may be tempted to say, “Anyone who needs insurance.” You’re not going to get clients that way because people don’t know the type of products you sell.
Now, if you were to say something like, “I help businesses prepare for the worst and build for the future,” that’s much clearer.
You need to narrow down the types of people you want to help and the insurance products you want to carry.
For example, you can start a captive insurance company, where you work with mid-sized businesses to manage risks.
Start Marketing Your Business
Want to know how to start an insurance company that’s successful? You need to be a sales and marketing master.
You need to market your business so people know about you. Your sales skills will allow you to close more leads in less time. More sales equals more revenue.
How do you market your business? Go to where your target market is. Let’s say you’re working with local businesses. You can attend networking events and local chamber of commerce meetings to reach those people.
You can also leverage digital marketing tools like a blog and LinkedIn to reach a captive business audience as well.
On the other hand, if you want to work with consumers, they’re going to be online. They’ll be on social media and searching the web for information.
You want to make sure that you have a captivating website that looks great across many different devices. About half of consumers shop for insurance online, and you want to make sure that you can be right there when they’re looking.
How to Start an Insurance Company
Starting an insurance company, like any business, can have its ups and downs. When you know how to start an insurance company the right way, you’ll experience more ups than downs.
You want to make sure that you have the necessary licenses, and you’re clear on the type of insurance you want to sell. After that, market and sell to the right people and close the deal.
Want more tips for your startup? Check out our money and finance section to learn how to manage money when you’re starting a new venture.