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How to Become an Insurance Provider
Insurance providers have the ability to offer a variety of insurance policies including life, homeowners, auto and rental. Some providers decide to specialize in one or two products, while others offer several different types. Before becoming an insurance provider, you’ll need to secure a license with your state department of insurance and determine the scope of your business.
Get licensed with your state. Although every state is different, most require insurance providers to successfully pass a pre-licensing course. During this course, you’ll learn more about your state’s insurance laws and the legalities of selling insurance products. Your state department of insurance will have a list of accredited programs in your area.
Register to take your state licensing exam. After you’ve successfully passed your education requirement, you’ll need to schedule a testing date. During your pre-licensing course, practice tests and study guides should be provided to better prepare you for the exam.
Make a final decision of what policies you’ll offer. If you’re an independent insurance provider (which means you’ll offer policies from several carriers), you’ll have more flexibility on product offerings. However, becoming an authorized agent for a single insurance carrier will give you the strength of big budget marketing and branding, although your product offerings will be more limited.
Ramp up your marketing. In the beginning, the majority of your time will be spent generating new clients. Make a list of prospects, starting with your family, friends and acquaintances. Work out potential insurance packaging that will save your potential clients money–get creative and continue marketing, even when business picks up.
Build up savings before becoming an insurance provider. Often times, your first year of business will be spent building your client base. For this reason, having a year’s worth of expenses can lift some of the financial burden and reduce stress.
Don’t forget the business formalities. Before opening your doors, you’ll need to secure a business license.
Nicki Howell started her professional writing career in 2002, specializing in areas such as health, fitness and personal finance. She has been published at health care websites, such as HealthTree, and is a ghostwriter for a variety of small health care organizations. She earned a Bachelor of Science in business administration from Portland State University.