How do I start an insurance company?

Not an agency or broker, but a carrier like Allstate, Progressive, Blue Cross or GEICO?

10 Answers

  • car253
    Lv 7
    3 months ago

    You want to start an insurance company ?? Impossible. Do you want to start an insurance AGENCY? That is possible. Which one is it ?

  • 4 months ago

    First, you have to hire all the people that know how to start an insurance company. Then, you have to get a lot of investors willing to put the capital into it. Then, you let the people you hired take it from there.

    It will take roughly $200,000,000 to start, and it will likely be a minimum of three years operating, before you can sell your first policy. At best.

  • 4 months ago

    First understand that what an insurer does to decide if its the right business for you. Insurance provides financial protection for individuals and businesses. As an insurer that you will charge your customers a set amount of money to insure against a risk. If no claim is made you will keep that amount of money as profit.

  • 5 months ago

    You clearly have no idea of the amount of money an insurance company has to put up as bonds to cover claims.

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  • 5 months ago

    You prove to your state regulatory department that you meet their minimum cash requirements for paying claims. If you have no experience in the insurance business, as a broker, you have no chance. Someone that wins hundreds of millions in a lump sum after taxes in the lottery and has no insurance experience is not going to be allowed to start up an insurance company. If you had that much money, the faster route would be to invest in an existing company with an eye toward taking financial control of it eventually.

    A hundred years ago, small-timers could and did start insurance companies without a tremendous amount of cash. There was little regulation back then. And, of course, lots of little companies went belly-up and policy holders got burned. Therefore, more regulation.

  • 5 months ago

    Its not that hard...its just the money you need to start up.

  • Anonymous
    5 months ago

    Save a few hundred million. Teenage troll

  • Zarnev
    Lv 7
    5 months ago

    It's not too difficult, just time consuming and expensive.

    First, you need to get together your team of lawyers, accountants, underwriters, admin, etc. They will research the differing laws in each state in which you want to do business and draw up the policy. They'll find out how much money you need to keep in reserves to pay claims in each state, which will be in the millions. They'll also buy the reinsurance you'll need to pay any claims should you have a disaster and a large number of claims. This process can take a year or more.

    They'll file the policies with the insurance department of each state. They'll probably need to make corrections and refile several times. because the states are picky. This process usually takes several years.

    Once a state approves your policies you'll need to get together another team of sales, advertising, claims processing, customer service, and more admin. This can run several more months.

    Then you can start selling. Remember, you'll need to keep that team of lawyers on the payroll and maybe even more lawyers on retainer.

    Source(s): Independent Ägent
  • 5 months ago

    You start with a lot more money than you have.

  • 5 months ago

    First, gather together $100 million, or maybe $200 million.........................

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