A Beginner’s Guide to Starting an Insurance Business 47

A Beginner's Guide to Starting an Insurance Business

This article was written by Ryan Varela, the CEO of Boost Health Insurance, which provides customized and affordable health care plans for thousands of customers across the United States.

Starting any type of business can prove difficult to people who are new to this type of thing. There are various details to look after in order to do everything correctly but, generally, it can all be learnt and dealt with. Information is your best friend so don’t be shy and start reading up on these details.

If you want to start an insurance business and guarantee its success, you’d be wise to stock up on a lot of information and knowledge. Certain questions such as ‘do you need insurance to drive?’, ‘how does insurance work?’, and various others can be answered once you get a hang of things.

This is a beginner’s guide to starting an insurance business, so let’s get into it!

How to Start an Insurance Business

1. Decide what type of insurance your company will offer.

Insurance companies generally specialize in one type of insurance. However, this is sometimes not true as there have been instances of insurance companies offering various types of insurance at the same time.

The difference is that usually, auto and home insurances are sold under a single roof. While life and health insurances are sold under another.

Before you even start the process of creating an insurance company, make sure you know what type of insurance you want to offer.

2. Find a suitable location for your office space.

The best possible locations for starting an insurance agency offices are usually in high-traffic areas such as city centers or big boulevards.

You will need enough space to accommodate an office for yourself, a conference room that will have one big table for 4 people minimum, a receptionist station and a fairly large waiting room.

Without any of these areas, you won’t garner a lot of success with your insurance business.

3. Make your business entity a limited liability company (LLC).

You should make this choice when starting an insurance company as an LLC will lower the amount of owner liabilities. Which is something that is preferred over other, different types of business entities.

It’s a fairly simple choice so make sure your business entity is an LLC. You’ll need certain certificates and to pay specific fees.

4. Check all general agent contracts.

What Affiliate Network to Choose First: My 2 Top Recommendations

You’ll need to contact insurance carriers that you want to represent at your insurance firm. Talk to someone who works at an agent appointment department and tell them exactly what you want.

You will need a general agent kit which will enable you to review the arrangements set forth by your carriers.

5. Recruit an assistant for help.

There isn’t a single insurance agency that was managed by only one person and brought to success. The insurance business requires a lot of time, dedication, effort, and willpower and there’s no possible way you will accomplish everything by yourself.

Hire an assistant or even two, and start dividing the tasks between all of you. These assistants will help you multitask easier, and they are quite possibly irreplaceable.

6. Start advertising and using marketing tools to promote your new insurance business.

There’s no way for people to find out about your insurance business if you don’t spread the word yourself. Invest in various ads such as ads on billboards, E-mail promotions, social media marketing, etc.

Advertise wherever you can, and you’ll start seeing an increase in customers fairly quickly!

Are you ready to start your insurance business? What’s the first step you’ll take?

Get The Lifestyle Designer's Digest
Directly into your inbox every Monday.
Previous ArticleNext Article

The Five Elements of Flawless Customer Experience 9

The Five Elements of Flawless Customer Experience

Providing a flawless customer experience is the ultimate goal for any business.

There’s a lot that goes into creating a customer experience that keeps your clients coming back for more. In fact, there’s so much involved that it can almost seem overwhelming.

However, providing a flawless customer experience becomes much easier when you approach the task through these five distinct elements:

Time
Understanding
Ownership of Emotions
The Unexpected
Follow-Through

Time

When it comes to your customers’ satisfaction, time is essential. Think of how a great experience at a new restaurant quickly sours if you’re left waiting for your food to arrive. Think of how your excitement over a great department store sale turns into frustration as you stand in line for what seems like hours.

Time is your most valuable resource and it is up to you to make sure you’re using your customers’ time wisely.

This is why restaurants have comfortable waiting areas with drinks and appetizers, or why airports have lounges with restaurants, shops, and even bars.

If your customers are being forced to wait for a service, make them feel as if their time spent is not wasted. The more positive drivers you offer customers, the less likely they are to grow dissatisfied with their experience.

Think of how you can implement this in your own business. Are there places where you can help fill customers’ time? Are there places where technology can be used to cut down on the time it takes to complete a task? Remember, it’s the customers’ time that should be valued, not your own.

Understanding

How to Use Content Marketing to Boost Your Business 6 Marketing Influencers You Must Follow

You must understand what your customers want, when they want it, and how.

While this may seem daunting, getting a better understanding of your customers doesn’t take millions of dollars, complex data analytics, and a degree in psychology. Instead, all it takes is a simple look. Watch their process, engage with them, ask them questions, and listen to them.  

How are customers interacting with your product? What’s the first thing they do when they enter your store? What’s the last thing they do before they leave? How long are they spending in each department? Do you notice anything that hampers their experience?

Take a look at your competitors. How are your potential customers interacting with them? What does this business offer that you don’t or vice versa? What is your, as Harvard Business School professor Clayton M. Christensen says, “job to be done?” What are your customers hiring your product or service to accomplish? Understand why your users are turning to your products.

Ownership of Emotions

Many companies have already taken hold of their customers’ emotions, though cynically. Subliminal advertising is a key example. However, the ownership of emotions does not have to be cynical. When used correctly, it can be the “holy grail” for companies.

Owning emotions begins with the aforementioned ability to understand. When you truly understand a customer’s choices and then act to make the experience better, you’re building a relationship of trust. That trust is the foundation of emotional ownership.

One way to build this trust is to reduce the “emotional” noise that surrounds your customers. Let them know that, even on their worst day, your business or product is there for them and that it will be a constant in their lives.

Think of restaurants and the long wait times you have to endure when they’re busy. Think of how angry—or “hangry”—you feel as you stand around, waiting for your table, and listening to your stomach growl. However, think of how some restaurants are able to reduce that emotional noise by serving you finger foods and drinks as you wait.

Also, seek to understand what emotionally motivates your customers.

Why should they be motivated to visit your store or use your product? To feel confident? Free? Unique? Secure? Successful? Research shows that all human beings are motivated by one of those factors.

The Unexpected

Experiences become stronger and more memorable when they’re accompanied by an element of surprise. Surprise can be addictive, which will only keep your customers coming back for more.

Think about mailing your customers or clients small packages with gifts and swag. Everyone loves to get mail and everyone loves free stuff, especially when it’s least expected.

A surprise doesn’t have to be a huge flash mob (though it could be!). Hand out snacks at your store. Is it a cold day? Give your customers hot chocolate or warm punch. Is it a client’s birthday? Send a card! Even a small note of thanks for a customer’s business is a nice little surprise.

The most important thing to remember: simply be sincere and don’t become predictable. Chocolates on hotel pillows were once a great surprise for guests. However, now that their wow-factor has faded, hotels are continuously trying to get back to the “unexpected.”

Follow-Through

You’ve made promises and established goals. The only thing that’s left is to follow through on them. This starts with creating your mission statement, one that you, your employees, and your customers can commit to it. This will define your customer experience.

Your mission statement must promise to impact yourself/your business, the community, or the world. It may commit to impacting one, or all three. However, whatever it promises, you must follow through on. Your customers’ trust, and thus their experience, depends on it.

More about these five elements can be discovered in Unforgettable: Designing Customer Experiences that Stick, to be published in 2018.

***
Kyle H. David has made a career in technology and entrepreneurship for nearly 20 years. In 2001, he formed The Kyle David Group, now KDG. Over the past 16 years, KDG has grown at a rapid pace, attracting clients ranging from the United States Senate to major financial institutions, international nonprofits, and Division I universities.