• 100 likes • 119 Views
If you want to know how to become an independent insurance agent, you need a helpful guide. Dig in to our website to learn about this topic and more https://agencyheight.com/become-an-independent-insurance-agent/
E N D
How to become an Independent Insurance Agent A step by step guide
Introduction • Sell one or more types of insurance, such as life, health, andproperty & casualty • Are not locked into specific products or carriers, which grants them flexibility • Earnings are from sales commissions • But before they make money on renewals, they should own theiragency
How do you start an independent insuranceagency? 1. Buy a book of business 2. Become an independent agent through an agency model
1. Buy a book of business • You canbuy a book of business from an existing insurance agency;But it is a costly • It would cost you more if the business is already a profitable one • In the end, the agency will be handed to you
2. Become an independent agent through an agency model • Agency models are crafted to aide your independent agency with appropriate support and responsibilities • The model provides all the operational assistance that your agency needs • The agency models: a) Franchise model b) Insurance FMO model
a) Franchise model • Allows you to ownan insurance agency where yougrow your book as much as you want • Provides you with all the operational assistance that you need • There will be a high fee to pay to the franchisor • Doesn’t give the independent insurance agents enough room to growdue to the non-compete clause from the contract • Know that a 2-year non-compete clause may bring your agency to anabrupt end and decide if you should stop working with them
b) Insurance FMO model • Is rising in popularity because it gives the agents much of the same services as the franchise model • The same advantages as the franchisorsinclude a higher level of freedom • There is a commission split with agents • On average, the split is 70/30 between the FMO and the agent • But on Covered by Sage, it is 80/20 for the first year and 50/50 for renewals
FMO in Covered by Sage • Is a little over a year old with ample backing and capital • Provides an excellent opportunity for agents on the east coast • Also offer full servicing assistance, marketing & lead generation support in addition to the high commission splits
Conclusion • Choose the right option for your agency according to your goals and mission • Understand which one of these models will encourage the growth ofyour company and its values • An agency needs a nourishing environment to grow into its full potential • A thorough review of the agency models reveals that the FMO model could be your best chance of dominating the insurance industry