How to build a successful P&C insurance business
Consider these factors when launching an insurance agency or starting a new career in the industry.
The global market for insurance brokers & agents is expected to grow to $426.6 billion by 2023. In other words, it’s a great time to invest in the property and casualty industry — or even start an insurance agency. The benefit? High income.
According to America’s Professor, selling property and casualty insurance makes for a great secondary career. In fact, insurance brokers and agents often see high-profit margins from the get-go and even higher profit margins as they progress into their careers.
There are many ways to become an insurance agent. Of course, licensing processes vary by state; however, all states will require some form of a background check and insurance license exam.
You also can start your own property and casualty insurance agency. The first step in doing so is to draft a business plan unique to insurance.
Naming a new insurance agency or brokerage
Quite commonly, startups may take after legendary business models such as Amazon and Netflix. Although the success of companies such as these is undeniable, they’re also primarily driven by consumer success and e-commerce. For example, Amazon thrives on digital supplement sales. In the world of insurance, it’s all about personality, which is why a great business name is so important.
A poor business name can foreshadow that a company lacks due diligence, attention to detail, and self-awareness. For example, a name that is difficult to spell or pronounce. Another example of a bad business name is one that is generic or simply doesn’t stand out. You’ll also want to avoid any names that sound too similar to your competitors or that or too long for social media handles. At last, you’ll especially want to avoid names that ride on any short-term trends or limit your business scope and expansion. More often than not, small businesses spend up to $180,000 and eight months on rebranding — something you should avoid at all costs.
On the other hand, a good business name can attract new clients and grow one’s brand awareness. Most good business names or simple and memorable and do a great job of creating a strong impression. Furthermore, most good business names differentiate from their competitors and serve as a foundation for their branding. Along with that, a good business name may even clearly define the business and link to a core principle or idea.
By laying professional groundwork into the P&C industry today, you can set yourself up to reap substantial benefits in the years to come. Have you gotten licensed to become a P&C broker?
Demetrius Harrison (thisisdeme@gmail.com) is an international business and economy reporter and is also a promotions specialist and project manager at NowSourcing, Inc., an award-winning infographic design agency based in Louisville, Ky., and Cincinnati, Ohio. The opinions expressed here are the author’s own.
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