Franchise Model of Insurance Agencies

1. A shortcut guide to Insurance Agent The things to know before becoming one

2. Introduction​ • Before becoming an independent insurance agent, you need to work in an insurance agency • If you want to own an independent insurance agency, you need to learn about the agency models • It will add advantage and help when it comes to the operations of your insurance agency • Also, it will be easier to grow your book of business

3. What models does insurance agencies work under? • Franchise model • Insurance FMO model

4. 1. Franchise model • Allows you to own an insurance agency where you grow your book as much as you want​ • Provides you with all the operational assistance that you need​ • There will be a high fee to pay to the franchisor​ • Doesn’t give the independent insurance agents enough room to grow due to the non-compete clause from the contract​ • Know that a 2-year non-compete clause may bring your agency to an abrupt end and decide if you should stop working with them

5. 2. Insurance FMO model​ • Is rising in popularity because it gives the agents much of the same services as the franchise model​ • The same advantages as the franchisors include a higher level of freedom​ • There is a commission split with agents​ • On average, the split is 70/30 between the FMO and the agent​ • But on Covered by Sage, it is 80/20 for the first year and 50/50 for renewals

6. What else should an insurance agent know? • You should possess the right and skills to become an independent insurance agent • You need to have a state-issued license • You communication skills should be excellent • You also need to have the knowledge of business management • If there are any sales experiences then that is a plus

7. Conclusion • Choose the right option for your agency according to your goals and mission​ • Understand which one of these models will encourage the growth of your company and its values​ • An agency needs a nourishing environment to grow into its full potential​ • A thorough review of the agency models reveals that the FMO model could be your best chance of dominating the insurance industry​