chriscostantini

Why You Should NOT Start An Insurance Agency (Part One)

Hey, how are you? Today I’m going to talk about why you should not start an insurance agency. There’s a lot to chat about here so we’re gonna split this one into a few different parts. This is contradictory to a lot of my content, but I feel it is necessary to put something like this out there because I get so many people reaching out that are interested, but I believe it is not for everyone. 

If you’re looking to start an insurance agency right now, in 2023, I just want to point out that this is one of the most difficult Insurance markets to jump into and be a new agent in, because there’s so much restriction from the insurance carriers. I’ve made other posts about why that is the case so I won’t dive into that so much right now because it is a complex economic conversation. So I just want to point out right now it is very very difficult for new insurance agents to get appointments and to jump into the insurance industry because of all the underwriting and carrier restrictions. 

Most people looking to start an agency come from some background in sales or working in an insurance agency for another agent. Even though being good at sales is an important part of the job, that’s the bare minimum really. There are several other things that I want to point out that may be good for you that you may be good at and may not be good.  You do not only have to be good at sales, you need to be good at marketing, building a brand, accounting, knowing how balance sheets work, hiring, firing, etc. Obviously you don’t know all of these things day one, but these are things that you will eventually have to do. You’ll have to figure out how to be good at managing employees , how to keep people motivated, productive, and happy working for you. You have to build a culture so make it a place or an environment even if it’s virtual. If you decide to start a virtual agency how to make that still have a culture in itself that people want to work in. You also have to have your operations dialed in, like what does a day-to-day look like for that service person and that sales person and for you and what is the distribution of the work, and running the operations day-to-day, basically the overall management of those aspects. 

Another aspect that is essential is building systems and processes that truly work. So having actual step by step guidelines on how to do anything in your agency from the most basic things like logging in to your management system to making a sale to following up on a client or a potential client to following up on a closed deal. Handling service questions, billing questions, etc. Each and every single one of these things need to have a certain process and procedure that are efficient that you could plug new people into at any time.

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