New AgentSync Guide: How to Start an Independent Insurance Agency

No single facet of insurance compliance is the same across states, and starting your own insurance agency traverses many of these nuances. 

If you’re only operating in one state, figuring out how to get started can be as simple as calling your local small business association or the secretary of state’s office and getting a step by step guide or even a comprehensive walkthrough or consultation about agency rules for your state.

But if you’re looking to work across states, starting an insurance agency has a few more hoops.

That’s why we’ve put together AgentSync’s guide, “How to Start an Independent Insurance Agency.” With this guide, first-time agency entrepreneurs are better-prepared to avoid regulatory pitfalls with information addressing questions such as:

• What characteristics should you look for in a designated responsible licensed producer (DRLP)?
• Which should you do first, apply for an agency license or register with the secretary of state?
• How do you decide on a name? (It’s not as easy as you think!)
• How can a new agency obtain insurance carrier appointments?

If any of this information interests you, download the AgentSync whitepaper here.

M&A activity in the insurance market keeps agency startup attractive

According to the Insurance Information Institute, there were 36,000 independent agencies in 2020, about the same as the data for two years before that. That tells us that, even as larger and mid-size companies snap up their smaller and more nimble counterparts, emerging businesses have continued to present opportunities for their founders.

So, if you’re interested in joining the cohort of agencies with new ideas and innovative service models for producers, consumers, or both, this could be a great time. But getting started following one state’s laws isn’t the same as following all state’s laws. E.g., you may get started in Nevada with a name and general agency practices that just won’t fly in Arizona. 

The insurance industry by nature is conservative. While you’re ready to make like a maverick and blaze a new agency trail, it pays (sometimes literally) to look before you leap.

The AgentSync “How to Start an Independent Insurance Agency” whitepaper walks readers through the basic steps of the agency setup process, from getting a DRLP licensed, to picking a name, to registering and licensing your agency, and even how to consider if your agency should move to an MGA model.

Each step of the process comes with its own complexities that could derail an agency in its infancy. Done wrong, your business could end up re-filing with the IRS in a year or two and have to start the process all over again. Done right, your agency can bypass state insurance regulation sticky spots and take a faster track to success.

Agency startup guide contains action items, state-specifics

While anyone starting their own agency is responsible for their own state-specific due diligence, the “How to Start an Independent Insurance Agency” includes:

• 18 pages of industry-specific startup information
• Action-item checklists at the end of each section
• Helpful commentary on what processes are most common in the 50 nifty United States
• State-specific callouts for several states that deviate from the norm
• A Table of Contents that makes it easy to navigate to the exact step you need

Whether you’re ready to affiliate your DRLP today or you are window-shopping for your next potential venture, AgentSync’s whitepaper on “How to Start an Independent Insurance Agency” can help you check your blindspots today. Download the guide here.