How to start an Insurance Business Online in Africa
If you are interested in starting an insurance business
or becoming a licensed, independent insurance agent, there are a few
steps that you need to take. These steps will help you obtain the
necessary credentials and licenses necessary to practice in the
insurance business. They are designed to give you a clear path to
becoming an insurance industry practitioner and be able to set yourself
up for success.
These steps are not in order in terms of what
needs to be done but outline a roadmap to the activities necessary to
get an insurance business started. Regardless of your level of expertise
or the prior knowledge you may have about the insurance business, it
would be helpful to consider these steps as part of your process.
Get Licensed
Obtaining
an insurance license in the state or states in which you decide to
conduct your business practice is a critical step in the process to
start your insurance business. A license is needed in every state,
including the District of Columbia, in order to solicit and sell any
insurance product.
Advantages
•Establishes you as an
insurance professional that is able to meet the needs oh your client
with the appropriate insurance products and services.
•Gives you
the required credentials to meet the licensure requirements of the state
in which you conduct your insurance business.
Disadvantages
•Can
be expensive, particularly if you have not completely identified the
business opportunity appropriate for the clientele you plan to obtain.
•You
are subject to regulatory oversight, examination and continuing
education of the state(s) you conduct your insurance business practice.
Form a Brokerage Agency
Forming
a brokerage insurance agency allows you the freedom and flexibility to
represent various different insurance company products to your clients.
This freedom translates into greater choice and better service to your
clients in meeting their insurance needs.
Advantages
•You have a wide range of insurance offerings to bring to the table to meet individual insurance needs.
•You
are not captive to the whims of one company and forced to sell a
proprietary or company product over what may be better to meet the
client’s insurance needs.
Disadvantages
•You may not have
the same contractual protections offered by captive and career agencies.
Your contract may be subject to modification or change periodically
during the course of the time you maintain a relationship with the
brokerage firm.
•You are 100 percent responsible for all of your costs and expenses associated with operating a brokerage agency.
Join a Career Agency
Joining
a career agency give you the ability to offer the insurance products
and services of an individual insurance carrier exclusively. This
brings the financial strength and reputation of that company to the
table when dealing with your clients who build relationships with you
based on trust.
Advantages
•The costs of operating your
insurance business are borne mainly by the career agency and captive
insurance company that you work for.
•You are able to be in the insurance business for yourself but not by yourself.
Disadvantages
•Your product offerings are limited to the products provided by the company whom you maintain an exclusive relationship with.
Choosing
to establish an insurance business can be fulfilling and rewarding for
you. You should careful consider the options in getting started in
order to evaluate and consider the option that best fits your needs and
circumstance.