by CaliKarl » Tue Mar 10, 2009 07:14 pm
I am interested in becoming a broker, so that I can offer my clients the most competitive rates. Do all companies allow brokes to offer their services? Does AAA allow brokers do do business with them?
How to go about contacting companies so that i can offer their services?
What are some requirements for offering their service?
Is anyone a broker with a website that I could look at?
How to go about contacting companies so that i can offer their services?
What are some requirements for offering their service?
Is anyone a broker with a website that I could look at?
Posted: Tue Mar 10, 2009 09:49 pm Post Subject:
yes most companies work with brokers however it just depends on what line of business you will work with. Just call the companies directly and they will guide you or you can contract with an independent Field marketing organization or General agent that will have the contracts with several companies. Depending on the contracts and commissions you find will determine whether you go direct to the insurance company or through an agency. Also concider what benefits you will have by going with an agency over direct to the insurance companies. Sounds like you have a bit of research to do yet.
GOOD LUCK!!!
Posted: Wed Mar 11, 2009 03:30 pm Post Subject:
CaliKarl,
I am assuming you are in California. Many companies in California work through brokers, including AAA, I believe. Many of the big name-brand companies do not work through brokers, however, choosing to write business direct or through their own exclusive agents instead. Still, you will not have any shortage of companies.
Are you planning to start your own brokerage or to work for an existing brokerage? If you start with an existing firm, it will give you the opportunity to learn the business, and you will have companies already signed up with the brokerage. You will not have to worry about company contracts, E&O insurance, or any of the other start-up challenges.
If you choose to start your own business, however, you will have to get contracts from each of the companies that you wish to submit business to. The insurance company's local sales manager will usually be your first and primary point of contact. If you have a reference who already has a contract with a company (a friend who writes business for Progressive, for example), ask your reference to contact his local sales manager and set up an introduction for you. For companies where you do not have a reference, contact the local sales manager directly by looking at the company's website. Be aware that you will have a challenge attracting the top companies without a proven track record, but it CAN be done. Your first sales task as a new agent or broker is to sell yourself to the sales managers. Being able to show them a sound business plan will help build their confidence in you. I do not know how much insurance experience you have, but experience in other parts of the business can also help build their confidence in you. You will also need to go through the normal business setup, E&O insurance, etc.
You are welcome to look at my website (the link is in my signature), but I am an exclusive agent in Ohio, not in California, so I am set up differently than you.
Best of luck! This is a very rewarding business when we are able to help people protect themselves, their families, and their property; but it can be very frustrating at times, too. If you go into it with the right mindset, however, the good far outweighs the bad.
Posted: Thu Mar 12, 2009 09:14 am Post Subject:
If you choose to start your own business, however, you will have to get contracts from each of the companies that you wish to submit business to.
I've heard that one is required to present a viable business plan at the interview with the company personnel that he/she is willing to get associated with. Is that ture?
How would one prepare for such interviews? & how to proceed with preparing the business plan?
Posted: Thu Mar 12, 2009 02:15 pm Post Subject:
There is a program called Business Plan Writer Deluxe developed by Nova Development. You can find it at Best Buy, or I'm sure you could order it online. There are a lot of software programs out there, but this one actually gives you examples and has you answer questions. It uses the answers to your questions to formulate a very professional looking business plan with charts, graphs, and the whole nine yards!
Some insurance companies will require you to have a business plan, and normally it is when they will make some type of investment in you that they ask for it. If you contract with an IMO, then they normally don't ask a whole lot of questions and sometimes there is no interview process at all. If you are looking to work with Allstate, for example, you will go through an extensive contracting process and even possibly have some competition.
As far as preparing for an interview, there are some great books out there that all basically have the same highlights. Instead of simply bragging about how great you are, prove it! Ask questions that show how ambitious you are and eager to please. For example, "What is something a new hire could do in their first 90 days to exceed your expecations in every way?" Obviously this is just an example, but you want to show that you are interested in making your career succeed, not just the bare minimum.
Some of the most important parts of the business plan focus on your background, skill sets, and goals. These are the most important, with the second most important section being how you are going to achieve your goals. What are your processes? What have you got in place, or can put in place?
If you need any additional help, just let me know!
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