Considering starting an insurance brokerage in 2020? If you’re an insurance agent with an entrepreneurial mindset wanting to take the next leap in your career by owning your own independent brokerage and running it how you see fit, then you need to prepare for the amount of time, work and planning needed to ensure your new business venture is a success.
Take a look at our guide of 5 things you need to open up an insurance brokerage company in 2020.
1. A business plan
First and foremost having a clear, concise, accurate and realistic business plan is key to building your company and communicating your value to potential stakeholders.
Your business plan should include all the information about your new company such as:
- The founders and people responsible for the brokerage.
- Target market
- Risk analysis
- Cash flow projections
- Company growth forecast
- Products and services provided
This plan will be used as a way to secure outside financing through loans and investors and will give you, and anyone else you may bring on, a clear understanding of your goals and ambitions.
2. Suitable office space
Choosing a suitable office space is an important factor to consider when starting a brokerage company. First look at the location, thinking about your budget, transport connections and the image you want to portray to prospective customers.
You’ll also need to decide on whether it’s best to lease or buy an office space. Again, this will depend on your budget as well as the number of employees you currently have and how many you predict to have by the end of the year.
Once you’ve secured your office space you’ll want to think about the culture to ensure employees are happy, comfortable and productive. This can be a challenging aspect to figure out. So our top tip is to look at what kind of office culture other successful insurance brokerages have.
3. Bespoke insurance system
Investing in a bespoke insurance system that’s simple to use, fits your specific needs and is the right technology for the job will help your business stand out to prospective clients. Lucid UX are able to use their knowledge and experience to provide white-labelled software solutions for your insurance brokerage, ensuring the system is built to handle both existing and new business from multiple channels.
Another way you can help your company stand out from the competition is by implementing a unique loyalty platform. Using this kind of platform can help to maintain and engage your clients by offering them exclusive rewards. It’s also a great way to incentivise new clients and boost your business.
4. Marketing and branding
To make your mark in the insurance industry you’ll have to ensure that your marketing and branding is eye-catching and instantly recognisable. Think of a brand name that perfectly encompasses your company in a snappy, memorable way, choose an eye-catching and appropriate colour scheme and striking imagery. If your budget allows it would be worth investing in a graphic designer to ensure you’re getting the best quality branding.
It’s also vital to market yourself and your company in the best way possible by finding ways to increase your brand exposure, planning exciting campaigns and product launches and improve your website’s SEO. With a good marketing strategy in place, your company will thrive.
5. Management structure
Many new brokerage firms who haven’t considered an appropriate management structure tend to end up micromanaging their new employees or taking an extremely laid back approach.
It’s important to decide what kind of management style you want to achieve and have a structure in place for employees to follow. Organise each employee based on their specific roles and responsibilities and use technology to easily manage workloads and make compliance a simpler process.
Read our guide on how insurance brokers can stand out in a competitive market to ensure your business is on the path to success.
Find out more about our loyalty platform and how it can help boost your business.