Best CRM for Independent Insurance Agents: Learn How to Decide
If you are new to the insurance world and want to open an insurance agency, this might be just the place for you. Here in this article, you’ll learn how you, as an independent insurance agent, can start your agency as an independent insurance agency. Also, it is important to decide on the best CRM for independent insurance agents in the first place.
You can take a few shortcuts to kickstart your agency along with your efforts that will help you in the long run. Find out how to become an independent insurance agent and start your own agency.
How to Decide on the Best CRM for Independent Insurance Agents?
The demand for an independent insurance agent is very high in the current days. According to Insurance Information Institute, in 2018 there were 36,500 independent agencies across the USA. Usually, clients seek agents’ advice and explore if there is an insurance agent near me as they do not properly get the concept of insurance to choose the policies that fit right for them. Clients prefer advice more from independent agents as they have a wide range of policies to offer for clients.
Independent insurance agents sell multiple insurances such as life, health, auto, liability, and property & casualty. Unlike captive agents, independent insurance agents enjoy the benefit of associating with multiple carriers at the same time.
The median annual wage of an independent insurance agent, according to the Bureau of Labor Statistics as of 2019, was $50,940.
How to open an independent insurance agency in Florida?
Along with money, time, and efforts, you also require adequate knowledge to start an insurance company initially. This includes proper insurance marketing as well. Effective marketing for insurance can propel your agency to the heights of success. However, we have a cheat sheet for you to start your business and run it smoothly easily. You can choose between these two options described below:
Buy a book of business
You can buy a book of business from an existing insurance company, allowing you to handle your agency while owning it. However, it may cost you more value as from $250,000 to $500,00, or even more, depending on how profitable it is.
Become an independent agent through an agency model
You can even consider becoming an independent agent through an agency model. The two most popular of them are:
- Franchise Model – The franchise model allows you to own an insurance business. They will provide you with required operational assistance alongside access to insurance carriers. Your agency will be associated with an established brand. However, the fees might be high. It also does not provide agents with much space for growth due to the non-compete clauses.
- Insurance FMO Model – FMO model is quite popular these days in the insurance industry. Generally, they split the commission with their agents. The split between the FMO and the agent will be around 70/30. For instance, Covered by SAGE has a great commission split compared to other insurance agencies. They provide a split of 80/20 for the first year and 50/50 for renewals.
Key Takeaway for Insurance Agency
As there are many options from which you can choose to function as your independent insurance agency, it may be confusing initially. According to recent reviews from agency models, the FMO model has positive and better results. Places should also consider applying this model in their branches for more effectiveness.