An insurance agency, often called an independent broker or insurance brokerage, is an organization that brokers contracts for insurance among a variety of insurance providers. They are not directly owned by any single insurance company. Rather, each insurance agency works as an agent for an insurance company on their client’s behalf. This means that when a client wants to get insured, an insurance agency gets in touch with the appropriate insurance company and gets them signed up. In turn, the insurance agency pays the appropriate commission to the agent for bringing the client in the insurance agency’s office. Have a look at Wilkinson Insurance.
Insurance agencies need to cover the costs of marketing and advertising. Since they will be working with a wide variety of insurance providers, their budgets will usually be quite restrictive. However, an insurance agency can get paid a specific sum of money for each client they bring in and then get reimbursed for their expenses from that provider for a specific amount of time. The insurance policy that they end up selling to their customers is often called a “bundle” or “couple” policy. This is because multiple independent agents will be working on the same policy, trying to get multiple clients signing up at once.
The typical work day for an insurance agency consists of working throughout the night and taking care of clients’ needs until the morning comes. They must also work overtime if there are changes in the business cycle, such as the possibility of a new insurance company wanting to do business with them. Insurance agency transactions must be completed accurately and promptly. They usually have to be in writing, which can make it difficult to misunderstand or commit errors in. This high level of attention to detail makes insurance agencies highly organized and efficient.