How to Become an Independent Auto Insurance Agent?

The insurance industry is one of the most convincing industries where one has a wide pool of opportunities to explore and grow. Are you one of those who want to step into this industry and seek guidance on how to become an independent insurance agent in Georgia? According to recent reports, it is projected that the scope for independent agents is very high in the coming years. Find more about how to become an independent auto insurance agent.

Let’s understand how to become an independent insurance agent and further even open an insurance agency of your own.

How to Become an Independent Auto Insurance Agent?

Independent agents are agents who represent various insurance companies. They sell the products and policies of these companies to the client. Their primary goal is to sell insurance while maintaining a strong relationship with customers.

Benefits of Becoming an Independent Auto Insurance Agent

They have many benefits compared to captive agents who represent only a single insurance company. Independent agents have the freedom to sell various policies that enable them to make a better impression with the clients. It allows clients to get the right coverages that they need. According to Investopedia, independent insurance agents are like independent financial advisors. Further, clients also tend to seek advice from independent agents more. While selling policies, independent agents get to choose the type of insurance lines they want to sell. The insurance lines could be personal lines such as life, health, and auto and/or commercial lines such as liability, and property & casualty. In addition to that, independent agents also have an extra income source through a commission from renewals.

how to become an independent auto insurance agent

How to Start an Independent Insurance Agency 

There are two options you can consider while starting an independent insurance agency. These options highlighted in this insurance blog are helpful as they guide you through the process, making it convenient for you to focus on profit-making. The options are:

Book of Business 

This option suggests you buy a business book from an existing insurance company. Although the amount may be as high as $500,000 or more, it would still be beneficial to handle the agency.

Agency Model for an Independent Auto Insurance Agent

In the second option, you can become an independent agent through an agency model. Agency models help agencies grow by providing them with proper support and assistance. There are two further agency models you can consider for this: Franchise Model and Insurance FMO model.

The franchise model provided adequate guidance and assistance while the agency can focus on insurance sales and lead generation. The agency will be associated with a well-established brand by adopting this model. On the other hand, the FMO model provides the same assistance and help but offers extra benefits. The commission split occurs between the FMO and the agency. The usual division is 80/20. This model is popular as it benefits both parties and is more effective.

Key Takeaway from How to Become an Independent Auto Insurance Agent

With the information given above, you will be aware of how to become an independent insurance agent in Georgia and to also start up with your insurance agency. People wondering how to get a job as an insurance agent can also follow these steps. As mentioned earlier, the scope of insurance is high. Even during this pandemic, the industry is trying its best to cope up and run smoothly. Hence this step will be the right choice for you to take. For local insurance agents wanting a boost in their career, this may be the opportunity you are waiting for.

Finally. follow our blogs on agency management system, insurance software and the importance of insurance agency management systems for starting a successful insurance agency.

 

 

how to become an independent insurance agent
how to become an independent insurance agent