Have you dreamed about becoming an insurance agency owner?
Working in the insurance field has taught you a lot and now you are ready to make the transition to an insurance agency owner. Despite having a wealth of knowledge acquired through years of hard work in the insurance industry, positioning yourself to be a successful insurance agency owner takes a well thought-out plan of action. Also, it’s imperative that you prepare yourself for the demands that await you as a new insurance agency owner. If you want to become, or have recently become, an insurance agency owner, here are some basic agency operations that you need to be aware of:
Essential Agency Operations for Every Owner
- Business Development:
As an insurance agency owner, how do you plan to find new leads? Does your insurance agency have community involvement, marketing activities, and deliberate referral source efforts in place to help with finding new customers?
- Policy Renewals:
How does your insurance agency proactively work with your customers to ensure they renew their policies? Is your company making calls and sending automated follow-ups using Blitz?
- Insurance Carriers:
Who are the top insurance carriers that your agency works with regularly? It is also important that you know the insurance reps and understand that not all have your company’s best interests at heart. So try to build relationships with carriers who want to be a true business partner.
- Policy Underwriting:
Working as an insurance agency owner means making sure that your business remains profitable. Take a look at how your agency’s book of business is performing and make sure you know your agency’s estimated loss ratios.
- Contingency Income:
Contingent business income refers to income contingent, or dependant, upon the actions of a third party (in this case, those who have policies with your insurance agency). To protect yourself as an insurance agency owner, it’s important that you are prepared for every possibility.
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Essential Business Operations for Every Owner
Depending on your personal experience and past career interests, making the transition from an employee to an owner of an insurance agency can be tough. While it might a little time and a whole lot of patience, it will all be worth it in the end. Here is some final food for thought to help every insurance agency owner be successful.
- Office Space:
Where will your insurance agency be conducting business? Do you need to purchase or lease office space? What are the terms and can your agency afford the expense of supporting an office space of that kind?
- Financial Operations:
How will your insurance agency ensure profitability? How are your expenses tracked and measured against your income? How is the accounting of the agency performed and who performs your agency’s tax returns? It is important that the person handling your money is trustworthy. Also, it doesn’t hurt if you have a working knowledge of payroll, banking, and cash procedures.
- Legal Needs and Concerns:
Is there an attorney for your insurance agency? Are your documents digitized and stored in an accessible but secure location?
What sales follow up system is your insurance agency using? Does your staff need a system that can help them save time, improve efficiency, and close more deals? If so, then you need to be using Blitz!
Boost your agency’s sales numbers with our easy-to-use follow up software! Blitz is reasonably priced, and is packed with the tools your company needs! Learn what pricing plan fits best with the needs of your company and get started using Blitz today!
Have you successfully made the transition from employee to insurance agency owner? What are the most essential things that you need to know to be successful? Is there any advice that you have for someone who is considering this as the next step? Please share your suggestions and stories by commenting below.