Independent Broker

[Evin]

Hi James,

I am interested in becoming an insurance broker. I want to sell homeowners insurance in Texas. I want to represent more than one insurance company, so I can offer clients choice of coverage. I would like to know where to start and how will I get insurance companies to allow me to represent them. Thanks

Traci

[nathaniel]

Hi Traci,

The best way to break into the business cold is to be hired into an agent training program usually offered by a large insurance company. Metropolitan and Prudential have programs in many areas of the country.(not sure about TX)  They will put you on a payroll, train you to sell insurance, and make sure you get licensed by putting you through a licensing course and making sure you pass the licensing exam.

Once licensed, you will learn how to prospect, sell, and close an insurance purchase. You will learn to sell ALL types of insurance, not just homeowners.  There are several problems with selling just homeowners policies. One problem is that you are leaving the auto policy for someone else and missing the sale. The other problem is that the other person who sells the auto will be looking to write the homeowners.  And if they do not get it on the first try, their foot will always be in the door as long as they write the policy.   It is your job to take care of all the needs of your clients, not just one aspect.  Retention is much, much higher for those accounts where you write all lines of business - home, auto umbrella, boat, etc.

To offer more than one company, you will need to be hired by an insurance agency.  Look around in your area.  Ask some of the larger agencies in your area if they are aware of any agencies(not companies) that take on brand new producers and offer some training.

Getting several companies to represent you is difficult because they will be looking for a commitment to certain premium volumes.  Can you write $250,000 of premium within a year or two with two or three companies?  That might be the requirement to get an individual appointment, and without a track record getting the appointment with the company(s) could be very difficult.

Hope this helps, and Good Luck!

James Berliner