Want to Break in the Business.. Help Please

[TexasStar]

I am currently a loan officer, looking for a transition into the car insurance and home owner insurance field, I have never sold any insurance ever, I have only sold loans and I am a top producer currently, however I know long term I want to own my own business, and I feel this would be a good fit, couple quick questions
1) What are the main nuiances I need to know about the business?
2) Can I become a independent broker and sell policies of all companies and just get my clients the best deal/situation?
3) How does the commissions work?
4) What steps do I need to take to prepare my self for this field?
5) Should I rent a space or work from home?
6) How clear is the process from finding a policy to finalizing it and time frame? End to end process?
7) What are potential pitfalls vs rewards to this career?
8) Realistically salary wise what can I expect ballpark?

Thank you for reading this post, and any advise at all would be greatly appreciated!

 

[669comche]

Answers are in red.

I am currently a loan officer, looking for a transition into the car insurance and home owner insurance field, I have never sold any insurance ever, I have only sold loans and I am a top producer currently, however I know long term I want to own my own business, and I feel this would be a good fit, couple quick questions
1) What are the main nuiances I need to know about the business?
Its hard, Its Hard, Its Hard.
2) Can I become a independent broker and sell policies of all companies and just get my clients the best deal/situation?
Absolutley
3) How does the commissions work?
Home and Auto is generally paid as earned. Unless they pay all up front for their policy. Typically commissions run between 10 - 15%
4) What steps do I need to take to prepare my self for this field?
Have a decent sized bank balance. Expect to purchase leads/Prospect lots.
5) Should I rent a space or work from home?
Work from home (if personal circumstances allow it)
6) How clear is the process from finding a policy to finalizing it and time frame? End to end process?
Depends on the LOB and policy. Some you can do over the phone, others are face to face.
7) What are potential pitfalls vs rewards to this career?
Its hard work, it can be lonely, in the early days its not terribly well paid. Rewards are RENEWALS, freedom, no boss etc etc.
8) Realistically salary wise what can I expect ballpark?
Thats down to you. There is no magic number. I grossed over 100k in my first year - although I had 4 hungry mouths to feed which was an excellent motivator!

Thank you for reading this post, and any advise at all would be greatly appreciated!

 

[amctyre]

In regards to your questions...

1) What are the main nuiances I need to know about the business? Make the Underwriting department of every company you sell with your best friend!!! When you begin, check and double check and triple check all the details. Don't take any question for granted!
2) Can I become a independent broker and sell policies of all companies and just get my clients the best deal/situation?Yes you can, and there are programs you can purchase that will allow you to optain multiple quotes at the same time so you don't have to keep re-entering information.
3) How does the commissions work? You usually get about 15% of the premium.
4) What steps do I need to take to prepare my self for this field? I find it to be pretty laid-back as long as you know your facts about the various coverages.
5) Should I rent a space or work from home?Work from home first
6) How clear is the process from finding a policy to finalizing it and time frame? End to end process? For auto insurance it's a short process and relatively simple. The only factor is you have to offer the lowest rate.
7) What are potential pitfalls vs rewards to this career? Pitfalls are that things CAN and WILL go wrong, but you can buffer that a lot by making sure you know your information and ask questions of the Underwriting departments. Auto Ins is easier to me than homeowner's insurance. But you might want to consider adding legal expense plans as an ancillary becuase its market penetration is only about 3%. Whereas with auto and home, you have so much competition you'll find it hard to stay afloat. If you're not familiar with legal espense plans, send me an email and I'll give you some more information about it. But also, the residual income is what makes insurance products so great to offer. The customer buys once, but you get paid after every renewal, indefinitely, over and over again!
8) Realistically salary wise what can I expect ballpark?It depends on the market you're trying to reach with auto and homeowners insurance - whether it be preferred or high-risk, but if you market well you can make about $40,000. If you market legal expense plans, you have the opportunity to make much more because you can leverage yourself as a broker more easily with legal insurance than with auto or homeowners.

Hope this helps. Let me know if you have any other questions!

 

[arnguy]

She forgot to add----join PPL!

 

[jerry176]

In regards to your questions...

1) What are the main nuiances I need to know about the business? Make the Underwriting department of every company you sell with your best friend!!! When you begin, check and double check and triple check all the details. Don't take any question for granted!
2) Can I become a independent broker and sell policies of all companies and just get my clients the best deal/situation?Yes you can, and there are programs you can purchase that will allow you to optain multiple quotes at the same time so you don't have to keep re-entering information.
3) How does the commissions work? You usually get about 15% of the premium.
4) What steps do I need to take to prepare my self for this field? I find it to be pretty laid-back as long as you know your facts about the various coverages.
5) Should I rent a space or work from home?Work from home first
6) How clear is the process from finding a policy to finalizing it and time frame? End to end process? For auto insurance it's a short process and relatively simple. The only factor is you have to offer the lowest rate.
7) What are potential pitfalls vs rewards to this career? Pitfalls are that things CAN and WILL go wrong, but you can buffer that a lot by making sure you know your information and ask questions of the Underwriting departments. Auto Ins is easier to me than homeowner's insurance. But you might want to consider adding legal expense plans as an ancillary becuase its market penetration is only about 3%. Whereas with auto and home, you have so much competition you'll find it hard to stay afloat. If you're not familiar with legal espense plans, send me an email and I'll give you some more information about it. But also, the residual income is what makes insurance products so great to offer. The customer buys once, but you get paid after every renewal, indefinitely, over and over again!
8) Realistically salary wise what can I expect ballpark?It depends on the market you're trying to reach with auto and homeowners insurance - whether it be preferred or high-risk, but if you market well you can make about $40,000. If you market legal expense plans, you have the opportunity to make much more because you can leverage yourself as a broker more easily with legal insurance than with auto or homeowners.

Hope this helps. Let me know if you have any other questions!

#6 when you buy on price you buy twice. Sell value, and if the price is fair the customer will buy.

 

[JoeInsGuy]

She forgot to add----join PPL!

bahahahahhahahah

 

[Tampa Bay Rep]

One other thing to consider besides the answers you got to your questions is to consider how you will generate leads and the costs involved in generating those leads.

If the quantities you need or the ROI is not there for a method you are considering you would need to find an alternative method for obtaining your leads.