My quick notes on getting into the Insurance industry.
I don’t claim to have everything figured out, but I got myself licensed while being in a different industry, I have set up my own DBA then an LLC in California. I have created and (unfortunately) dissolved a Partnership, as well as helped a Venture-backed Canadian startup get licensed in all 50 states, while getting licensed in every state myself.
This is a lot of info geared towards the sell side becoming an insurance agent or broker, there are a ton of great Carrier and Technology related roles in the industry as well.
Getting started:
Background, How the Industry Works
Insurance is an awesome industry due to the help you can provide, the money you can make, and the annuity aspect of most of the business. Plus you don’t need large financial recourses to get started, with that being said, expect the flywheel to take a little time to start spinning. Insurance agents and brokers are most often paid off commisions, typically large lump sums (70-110%) with a small tail in Life Insurance, and 10-15% annually Property Casualty, Home, Auto, Commercial. If you work for somebody you’ll split commisions with the “house.” Health insurance is a small monthly percentage to the Agent or Broker too.
the Insurance Industry’s modern history largely dates back to the maritime industry, and backing boats that were trying to make their way to the “new world,” today it helps keep the wheels of society turning. Widows helped start the Life Insurance industry in the modern era too, it has amazing, inspiring roots all the way around. From Farmers to taking care of each other, to the actuaries and data scientists behind the scenes, as well as Agents, Brokers, Account Managers, and Claims folks working with people in their greatest time of need.
Getting Licensed, Bonded, and Insured
If you’re looking for an insurance job, getting licensed ahead of time will really help you open doors, and it’ll show your seriousness. If you want to strike out on your own you’ll need at least Errors and Omissions Insurance and an Insurance Agent or Broker Bond (depending on the state). I’d highly recommend an LLC, or at least a DBA as well, the DBA won’t offer any legal coverage.
I can mainly speak into California, but you’ll need to do some sort of pre-license training, to get your required study hours in. Then you’ll qualify for the Department of Insurance tests. Check ahead of time to confirm the hours and courses needed to qualify. If you have a DUI or a Felony, it’s not a full stop, but I’d recommend checking in with your Department of Insurance ahead of time to make sure you’re able to get licensed.
^^All of this should be able to be done for $500 - $1,000 depending on how you take your classes and licensing fees, it can be less for sure. Don’t forget your $800 LLC tax if you go that route in California too.
Where I got my Pre License Training done, prelicensetraining.com. I am going to date myself, but I ran through coursework online (let the clock tick down), then I used a hard copy of the material to dive in. Trying to get the intent of insurance really helps.
A helpful website to check out your states Department of Insurance’s requirements: naic.org/state-insurance-departments
Getting a Company Licensed (plus what it means for your license.)
In most states, you won’t have to register with the state you’re in, with about 7 you will. Many states will want to approve your name. They don’t want it to sound like a government org, and they usually want you to include the word “insurance.” Once you have a name approved you can apply for the company license and backstop it to an individual license. Company licenses need to be tied to a person / producer for accountability's sake. If you are that person or producer, make sure the company you lend your license to is above board, if not, your license is at stake.
This will be your anchor Resident License for the company, you’ll want to attach your agency’s E&O to it, and get Producers appointed below you with the state to attach them to the company license and be covered under the company E&O. You will use this license to apply for other non-resident licenses as a company. Your Producers will need to be licensed in other states if discussing insurance out of state as well.
A helpful website to check out your states Department of Insurance’s requirements: naic.org/state-insurance-departments
Getting Access to Carriers and Tech (Shameless Plugs!)
SmartChoice is how I get to Property Casualty Insurance products, Home, Auto, Commercial, etc., and now I work with them for Life and benefits access too! They are one of the most laid-back client-centric companies I have been around. It took me a year to sign-up, and I wasn’t hounded by my sales rep once, but he knew exactly who I was when I called back. I did some vetting ahead of time and called an experienced Insurance sales professional friend that had been building with them, and he had nothing bad to say. He said just to earn your way to direct carrier access (50k + production year).
Here’s their website if you’d like to know more, and I wouldn’t be mad at a “Brett Fulmer” reference if they asked how you heard about their organization:
Please feel free to email me at brett@brokerbrett.com or bfulmer@smartchoiceagents.com to chat about my experience working with SmartChoice too.
NOW THAT YOU’RE IN THE GAME:
Creating your Platform, Tech, and Marketing Materials
I have kept things fairly simple, I like being able to change things on my own and have never had a big bankroll. I use Squarespace, it easily connects with the Google Suite, Google Drive, Gmail, etc, RingCentral (it’s best in class in my opinion), and Canva (logos) and VistaPrint (Marketing materials) are a great way to help out the gate too. Will this work for a Fortune 500 company? Probably not, but will it help you build the confidence of your network? It has for me.
*I am hesitant to name an “Agency Management System” here, or AMS for short, they’re often bulky, overbuilt, and expensive. Do your research, and you can probably manage on a spreadsheet for a while until you have consistent cash flow.
Social Media
You do not have to be everywhere, or all things to all people. I like LinkedIn, Twitter, and Instagram. My former business Partner pulled a lot of business through Facebook, go where you like to be. Remember, if you’re going to be on a platform, do it well. Yelp and Google aren’t fun to get organized, but it’ll pay off. Don’t sleep on community groups, especially on Facebook as well.
Marketing and Social Media help open doors, and make it easier to walk through them, but you’re still going to have to ask for the sale and close…
Cold Calling
I fear like I might sound like a Baby Boomer on this (not a bad thing!) you’re probably going to have to do some unsexy things to get the wheels of your agency or your book of business rolling, like Cold Calling. Cold Calling is an ugly old-school activity that’ll help you win your first non-family and friends clients (usually best to get first to prove you’ll survive!) and it’ll help you get the marbles out of your mouth for real opportunities.
*Remember, if you get on the phones or knock on doors (respect) you’re trying to schedule a time to talk, you’re not selling!
I have not done the good work of digging into one, but I have known some great sales folks that got rolling through BNI groups too. They’re highly organized, pay to play referral networks. They will give you presentation reps and help you build professional skills too.
Some young sharp hustlers I know data scrape and automate marketing for opportunities as well, I have used Data Miner to build my own lists in the past too. To each their own, but don’t expect much inbound if you’re new and don’t have old colleagues or an old network primed to feed you business.
*Watch the referral laws, I have not seen a state that lets you pay off of commissions, but you can pay a consistent amount for leads. Please consult your department of Insurance on this.
PS: Leads companies can “stretch” their data with filler, they’re going to promise you the moon, know there’s going to be some sawdust in the coffee…. You can make money and be profitable through them, but really watch the bottom line.
Follow-up and Consistency
I am good on the phone, good in a meeting, and can pick up cues easily, but I sometimes can lack the most crucial skill in the whole Sales game, Follow-Up, and Consistency. What server would you prefer, the one that’s highly charismatic, or the one that gets things right? Execution and delivery are kings. If you are planning a career and not looking for merely a sales job or performance, but high value on your name and reputation, not just sales skills.
Building a Network
If you want to go far, go together” – African proverb.
Insurance can be tough because a lot of people can help us (real estate, legal, CPA referrals, etc.), but we don’t get the give-back opportunities as often. How do you give back? Be a badass professional.
If it doesn’t scare you too bad, starting a MeetUp around sales or biz dev (we have one called Broker Brews) and or starting a podcast or YouTube channel can be great relationship builders too. Don’t expect to be Joe Rogan or Tim Ferris, I think the goal is to help the people look and feel good around you, people naturally reciprocate kindness and help.
Building content around and for the community you want to sell into is huge too! But just don’t mistake activity for production, you’re probably still going to have to get out there, get your hands dirty, and ask for orders too.
Getting Organized Professionally
You can set up a DBA super easily, typically at a county office, a solo LLC can be done on your own too. If you are entering into a Partnership, I’d recommend a Business or Contracts Attorney to help guide you through the process and can warn you about the potential tough days. It’s best to plan for the tough days when you’re in the middle of the good ones.
CPAs will help guide you through taxes, it’s scary the first time, but not too bad after. In most states, you’ll need a separate Trust Account to handle not admitted or agency billed insurance policies. Even if it’s not required, a Trust Account is part of best practices in our industry. Last but not least, make friends with your Banker. As a small agency owner, I preferred working with a Personal banker that recently got into Commercial banking. He knew my finances and cared about my outcome.
Enjoy the Journey
There are going to be highs and lows, but you will definitely learn a ton and have some stories. Write good business, know what you’re writing, try and see the risks when you can, especially on Commercial. Remember this is a very long game, we’re in this for the compounding and reputation, not a quick buck.
Take care of your people and they will take care of you!
Contact me below if you’d like to talk more about the sales side of the Insurance industry: