Starting An Insurance Brokerage – What You Need
You will have built up experience over a number of years within the insurance industry. This may be directly working for a broker, insurer or associated businesses which have provided you with the level of experience needed to provide good and proper advice to your clients. As a regulated industry, it is essential that you can demonstrate a track record of providing service in your chosen field before you start an insurance brokerage.
Whilst it is not a requirement to have formal qualifications (but of course that helps), it is essential to demonstrate that you have the level of knowledge necessary to provide technical advice to your clients. This will vary depending upon the type of business you want to transact but a reasonable level of technical and product knowledge is essential.
Sales Track Record
You will need to have a track record of dealing with insurance buyers. To build a successful business you will have been able to build strong and trusting relationships with your audience and therefore the ability to build your client base.
Building your own business requires a basic level of commercial knowledge. This might be the first time you have had to deal with running your own business and although working within a commercial environment will have armed you with good financial knowledge, you will need to be confident in your ability to make commercial decisions. Access to business support and mentoring can be very helpful in the early days of setting up your business, and there are lots of useful places for you to go to for support. The Set up a business area on gov.uk is a good place to start.
General Insurance is regulated by the Financial Conduct Authority so it is essential that brokers operate in a compliant manner. Whether you choose to go down the Directly Authorised or Appointed Representative route, knowledge of the FCA requirements is essential. There is a broad range of support services available and industry bodies can all help you to ensure that your knowledge remains current. The Chartered Insurance Institute is a great place to start.
It goes without saying that making your business a success will require commitment and drive. As with any new enterprise, a considerable amount of energy is needed and the amount of time you will need to invest should not be underestimated – the rewards can be great but starting your own business is never an easy option.