Starting your own independent insurance agency requires start-up capital. The amount you will need can range from as little as $5,000 to $50,000 or more, depending factors such as where you're located and how you plan to operate your business.
Get licensed in your state.
Write a business plan.
Register with the state.
Get insurance for your business.
Secure financing if needed.
Start bringing in clients.
How then do insurance companies make profits?
First, they pool the money to pay claims. Second, insurance companies pay for expenses involved in selling and providing insurance protection. Third, insurance companies invest money. Earnings from investments help keep down the cost of insurance to policyholders.