How to Become an Effective Insurance Broker Agent?

Who is an insurance broker?

An insurance broker is a legal company, an intermediary in the insurance services market between clients and insurers. The broker acts on behalf of and in the interests of the client, analyzes his needs, and offers the best possible option. In fact, the broker does all the work that the policyholder could do himself: he studies several insurance companies, analyzes their offers, chooses the best one, and negotiates discounts. The broker saves the client’s time.

How to become an insurance broker?

To do this, you need to have a step-by-step plan:

  • Company opening. It is necessary to register a legal entity indicating. “Activity of insurance agents and brokers” and obtain a license for brokerage.
  • Prepare a business development strategy. Determine what types of insurance you will work with, which insurers you will choose as partners.
  • Position yourself as a broker. Analyze the market and determine your unique competitive advantage over other brokers.
  • Market promotion. At the initial stage, it is necessary to outline a marketing policy – a website, advertising, social networks, cold sales.
  • Staff. It is worth immediately deciding on sales tactics. Who will sell your services? In-house agents or remote workers at home?
  • Education and development. It is necessary to develop a training program for agents and constantly develop them. Keep up to date with all offered insurance products, their conditions, and pitfalls. Conduct training to develop the necessary skills – where to look for clients, how to communicate with them correctly and identify needs, how to cope with stress resistance, and keep up with everything. Insurance agents are the main resource of a broker and it is worth investing in it to the maximum.
  • CRM system. Decide which electronic system for the work of employees to choose. It should be simple, convenient, reliable, and quickly updated.

What is the best place to start?

A good insurance broker is a professional who understands all the nuances of the insurance market. Therefore, we recommend that you start entering the business of insurance brokers gradually, mastering one insurance product after another. The easiest way to start is with car insurance – everyone needs OSAGO policies, they are easy to calculate and design. Further, having mastered the auto insurance market and having taught all your agents to work with OSAGO policies, you can move on to several areas of insurance. Add CASCO policies to auto insurance, master the areas of real estate, medicine, and life insurance.

Pros and Cons of the Insurance Broker Business


  • It’s easy to open a business. In addition to the authorized capital, practically no capital expenditures are required. At the initial stage, there is even no need to open an office. It is enough to have several remote agents.
  • The huge insurance market. In recent years, people have become accustomed to insuring their property and health, so the volume of potential customers is very large. The main thing is to know what niche – car insurance, property insurance, or health insurance – you will throw your main forces into. It is better to start with OSAGO policies.


  • High competition in the market. Yes, there are many potential customers, but there are also a large number of insurance companies, brokers, and independent agents. In this market, you will have to sweat, work with your elbows and knock out your place in the sun. They will work for you – a high level of professionalism, excellent customer reviews, expertise in the field of insurance.
  • The huge insurance market. In recent years, people have become accustomed to insuring their property and health, so the volume of potential customers has increased slightly in recent years. The main thing is to occupy the right niche – auto insurance, property insurance, or health insurance.
  • The business will not become profitable immediately. Promotion may take a year or more. When creating an insurance broker, it is necessary to take into account all investment risks and provide for various scenarios for the development of events.

How to Become an Effective Insurance Broker Agent

  • A penchant for analysis. It is necessary to be able to work with a large amount of information, be attentive to details and be able to draw conclusions.
  • Charisma and empathy. An insurance broker is an assistant, guide, and consultant in the world of insurance. He must be able to establish contact with the client, understand the true needs, and gain confidence.
  • Tact and stress resistance. People are different. A good agent must control himself in any situation, and if a conflict arises, resolve it by compromise for both parties.
  • Education. The presence of education is not a mandatory requirement for either the owner of an insurance broker or his agents. But having an economic education, or at least knowledge of the basics of economics, will always be an advantage.
  • Curiosity. The desire to be aware of all the news of the insurance market contributes to the formation of a specialist as a highly professional, and this, of course, gives an advantage over other market players.
  • Ability to plan. The agent works completely independently and financial success depends on his time management skills.

If you have all these qualities, you can start by working for an insurance broker as a remote insurance agent. Make a plan and act step by step. Choose an insurance broker that suits you, who is firmly established in the market, and offers interesting conditions for you.

Start with auto insurance services, namely the sale of OSAGO policies. This is the easiest and most reliable way to start your career as an insurance broker. The main thing is to collect the primary customer base from relatives and acquaintances, to be trained in the system for the selection and execution of OSAGO policies. And go! Then everything depends only on you.

By Cary Grant

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