When you’re ready to expand your business, one of the best ways to grow is to buy an insurance agency. Buying an insurance agency is a great way to quickly increase your revenue and expand your services. When you’re ready to buy an insurance agency, there are a few things you should consider to make sure you get the most out of your acquisition.
What to Consider for a Successful Agency Acquisition
Most states have their own laws that govern the operation of insurance companies and agents. If you purchase an insurance agency, you will take on both the duties as a licensed agent and the responsibilities of the insurance company itself. It is a huge transition, and it’s important to make sure you’re aware of your new responsibilities.
In addition to this, the state regulates the insurance industry and makes sure it remains a safe place for the citizens to work. For example, insurance companies are not permitted to engage in unfair business practices, including but not limited to canceling insurance policies without a legitimate excuse.
They are also required to have a fair and unbiased claims process. If a policyholder complains about a claim, their carrier must respond to them within a reasonable amount of time and comply with the complaint and the claims process. If they don’t, they risk having their license revoked or fined.
Insurance agents in most states must have a license from the state agency. This license is a requirement that is separate from your agent licensing and is a requirement for agents who do business in the state. Most states offer multiple licensing options, including general, life, health, property, casualty insurance, and an umbrella license that covers multiple areas but is not specific to an area of insurance.
Every license has its own requirements and responsibilities. Regardless of your licensing option, you should make sure you know your agency’s licensing requirements and the responsibilities that come with it.
Thinking of Buying an Insurance Agency?
Here are a few tips to help you prepare. It’s important to know what you want to get from an insurance agency and what you’re looking for. Is it a simple way to add more insurance products to your portfolio? Are you looking to grow your business and expand into new territories? Are you looking to become a broker or offer additional insurance products?
These are questions you need to ask yourself before looking at potential options. To help you with all this, visit our contact page at Energia Consulting Partners LLC today and talk to us.