Start my own insurance agency or go with a known brand like State Farm or MetLife?

Answer 1

Depends.

No one just starts an insurance agency on their own by hanging out a shingle and leaving the front door of the office open. (Maybe someone did that 50 years ago, but not now.)

You'll need to work your way up in the business. If your interest is property casualty insurance (PC), State Farm has an excellent system for training and promoting within their company. That's a great place to start and may be a great place to stay and even from which to retire. Two things:
Be prepared to relocate to an available office anywhere in the US;
You will only be able to sell State Farm and companies authorized under that name plate. This is known as "captive agency" and you would be a "captive" or "career agent" of State Farm for as long as you worked for them.

If your interest is in life insurance and health insurance, find a local agency and get a job as an office assistant. Show some initiative and you might find you like the business and will get opportunities to sell. Life insurance carriers also have "captive agencies" (Northwestern Mutual, New York Life, Mass Mutual, etc.) and that's a good place to get training. Be prepared to starve for the first few years, however. This is a tough way to go.

You will have to get licensed in the states in which you want to do business. Each state has it's own requirements. Insurance is not regulated by the federal government (yet).

There is a lot of future opportunity in insurance. The baby boomers are getting ready to retire in another few years and someone is going to have to take over.

Good luck!

Answer 2

Insurance agents in the U.S. are licensed by the state and as such really aren't wedded to one agency. They can work for any agency that will hire them. As I recall, State Farm used to have several rules regarding the writing of auto policies. I'm sure that if it says John Jone's State Farm, John Jone's either owns or leases the building but I'm guessing he a franchise owner. There have been so many claims that several insurance companies are trying every trick in the book to get out of paying claims. I read something about a company not paying claims because they claimed it was a flood that caused the damage. I had been told a long time ago that insurance companies had heavily invested in real estate and we all know where that market has gone recently. I think the way the people have been treated by the government (FEMA) and insurance agencies is criminal.

Answer 3

When I started I had left a insurance executive position, I had approx. $100k saved up- unmarried, no children at the time. Remember I had been trained and had actually sold policies before starting my own agency. I thought I would be making big money immediately.. I sure was wrong, I blew through the money within 4years.. and then 2 years later I was 60k in credit card debt, but still believed I had made the right decision and kept working at it. Then I made it, things finally clicked for me about 7 years into it.
If you don't luv it, don't do it- next year will be my 17th year and I still luv everything about this business, have a passion for what you do- or it just won't be worth all the effort and work.

Good Luck

Answer 4

I would think that going with a known brand like State Farm who is established and continually advertises is the best way to go. The have a structured support system also. Good Luck.

Answer 5

It's easier to start as a direct agent for met or state farm, but more lucrative in the end if you start an independent agency.

Answer 6

Get started with a brand name. Once you build up faithful clients, start your own agency.