Who is an insurance broker?
An insurance broker is a commercial organization that acts as an intermediary between insurers and buyers (insureds). The broker carries out its activities in the interests of the client. Before offering the buyer one or more insurance options, brokers analyze the offers on the market, taking into account the needs of the client. In practice, the insurance broker is busy with the work that the client could do himself – analyzes the offers of several insurance companies, chooses the most optimal one, negotiates discounts and bonuses for the insured. By such actions, the insurance broker saves the buyer’s time and budget significantly.
How to start working as a broker
An insurance broker is a businessman. Therefore, before starting an activity, it is necessary to develop a business plan and a company development strategy. Where to begin:
- Opening your own company. You need to register a legal entity, indicating OKVED 66.22. “The Activities of Insurance Brokers and Agents”.
- Develop a business development and management strategy. You must choose for yourself the types of insurance with which you will work and partners in the form of reliable insurers.
- Act and think like a businessman. It is necessary to conduct a thorough analysis of the insurance market, to determine what unique advantages you have over your competitors.
- Promotion and advertising. Even at the development stage of your business, you need to develop a marketing policy – create a website or advertise on social networks, print business cards and distribute them at business meetings, participate in events where you can find customers (presentations of new cars at dealers, events in the banking sector, thematic meetings car owners, etc.).
- Staff. First, you need to decide who will be in charge of sales. Will you hire full-time employees who will go to the office for wages or work with agents?
- Development and training. You will need to develop your own training program for insurance agents. Your employees should always be aware of all insurance products, know the nuances of working with them. In addition, it is important to pay attention to training in the field of sales techniques: telling where to look for customers, how to find a common language with them, how to work with objections. A time management course will not hurt, it will help employees to keep up with everything and be as stress-resistant as possible. Insurance agents and sales managers are the main resource and source of income for a broker, so he must invest in them as much as possible.
- Affiliate program. Choose your online platform for your agents. For example, the Inzuro affiliate program is ideal for beginners, high-interest rates for the sale of policies, a convenient personal account, statistics, bonuses, online calculators. available directly on the site. Training and support.
First steps: how to start a broker
An insurance broker is a professional in the insurance market. Master insurance products, one by one. The easiest way to start your business is with auto insurance: OSAGO and CASCO. OSAGO is a mandatory type of insurance, so there will always be demand. And since many cars are purchased on credit or leasing, at the request of a creditor bank or a leasing company, CASCO is often required to approve a loan application. OSAGO policies are simple in calculations and execution, and with the advent of online calculators, the probability of errors in calculations is minimal.
Then you can expand the list of services provided: conclude contracts for life, health, medicine, apartments, country houses. The next stage is working with corporate clients and studying business insurance products.
Advantages and disadvantages of working as an insurance broker
- It’s easy to start a business. At first, the broker does not even need its own office. Just collaborate with multiple agents remotely.
- The insurance market is huge and there is enough space for everyone. People are already accustomed to the need to ensure their health, life, and property, so the number of potential buyers is growing every minute. But for this, it is necessary to study the market and the social situation in the country. This will help you understand which insurance product is most in demand at the moment.
There are also disadvantages in the work of an insurance broker:
- There are many competitors in the insurance market. You will have to sweat noticeably, working with your elbows – you just won’t get your place under the sun. A high level of qualification and professionalism, the best reviews from grateful clients, being an expert in the world of insurance services – will help you in your work.
- Getting a good income will not work right away. It may take an insurance broker a year or even more to promote. When you start your work, you need to take into account and lay investment risks, as well as think through possible scenarios for the development of events, up to the termination of activities.
How to Become a Professional Insurance Broker Agent
In order to become a successful and effective agent, you need to have a lot of necessary qualities.
- Have an analytical mind. Be able to quickly process a large amount of incoming daily information.
- Have empathy and charisma. An insurance broker is a consultant, guide, and assistant in the world of insurance services. The ability to find contact with the buyer, to study and understand his needs, and quickly gain confidence are important qualities of an agent.
- Resilience and tact. Clients come across different, so a good agent should not lose his temper in any situation. An experienced agent any conflict will lead to a compromise.
- Having an education. Of course, this is not a requirement to be a great insurance agent or broker. But if you want to become a successful employee, an economic education or knowledge of the basics of economics is your great advantage.
- Curiosity. If a specialist strives to constantly be aware of the latest news in the world of insurance, he will definitely become a professional in his field. And of course, this is a clear advantage over competitors.
- Time management skills. The agent must be able to plan, he works only independently, the profit depends only on himself.
If you have found all these qualities in yourself, then you may well start your activity as an insurance agent cooperating with a broker. Prepare a plan and follow it. Choose an insurance broker with an excellent reputation and experience.