Posted by on Mar 18, 2021 in Business | Comments Off on Insurance Agency – Profits

Insurance Agency – Profits

An insurance agency, often called an insurance broker or independent agent’s office, actively solicitates, drafts and terminates policies for a variety of insurance companies, and represents the client in transactions involving those policies. Insurance agencies are usually formed by a large number of employees who have been trained in sales techniques, public speaking skills and other areas of insurance. They are usually highly skilled sales professionals who are also extremely knowledgeable about the insurance industry and the products and services offered by insurance agencies. Insurance agents make sure that clients understand all aspects of insurance from the start, including the various kinds of policies, the terms and conditions, the exclusions, and other important considerations. A well trained insurance agent can also guide a client in making insurance buying decisions. Do you want to learn more? view more

Insurance agency revenue is generated from a variety of sources. Insurance agency commissions are a common source of revenue for many independent agents. Commission income can be obtained directly through a specific insurance agency or through a network of related agencies. The larger the agency network, the more likely a commission income will be generated from a larger number of clients, as the agency has a better chance of securing new business through referrals.

The main source of insurance agency commissions is the actual commission earned by a specific agent or group of agents on a particular policy. However, independent agents also receive a portion of each policy’s total premium paid by the client (this is referred to as “direct” or “indirect” insurance policy sales). Indirect insurance policy sales also account for a large part of most independent agent revenue; in recent years direct insurance policy sales have dropped slightly, however, because many insurance policy owners now prefer to take out an indemnity policy instead of an insurance policy, which eliminates the need for direct sales. One reason for this is that individuals are becoming more familiar with the need for insurance protection, and they are switching their policies more frequently.