An insurance agency, often called an insurance broker or independent broker, actively solicites, refers and binds policies for a number of insurance providers on their behalf. They are not in any way directly associated with any one insurance provider. Insurance agents are highly specialized professional people who have a license to sell insurance, but not an ownership interest in it. They can be brokers or solo practitioners, or work for a company that hires and manages them. Have a look at Wilkinson Insurance more info on this.
Many insurance agencies are formed as either corporations or limited liability companies (LLCs). Most people think that such agencies are legally binding, when they are in fact totally voluntary. They have neither a board of directors nor a written code of ethics. In fact, the only governing board is the sole director. The board may hire or fire the agents and also set their compensation and other terms and conditions.
There are two main functions of the insurance agencies. One is to find the right insurance policy for the client. The other is to negotiate with the insurance carrier to obtain a rate that is economically feasible for both parties. This second role is commonly referred to as underwriting.
To get started in the insurance business, you don’t need to have your own employees, office or even a storefront. You can establish your insurance agency on either a full-time basis or as a part-time practice. There are a number of excellent online sources for learning about this rapidly growing business. You can also attend conventions and seminars to get first-hand information from experienced insurance business owners.