Help Needed: Creating an Insurance Company (not brokerage)

[Banksy]

Hi everyone,

Searching the web has been a painful experience on what it would take to create an insurance company like that of Nationwide or State Farm. As a novice I am familiar with the basic guidelines but would appreciate any insight anyone has to offer.

Thank you in advance!

 

[Markthebroker]

I think googling "how do I start and insurance company" will be very similar to googling "how do I build an airplane".

 

[sshafran]

Hi everyone,

Searching the web has been a painful experience on what it would take to create an insurance company like that of Nationwide or State Farm. As a novice I am familiar with the basic guidelines but would appreciate any insight anyone has to offer.

Thank you in advance!

I keep googling how to start a major hospital system - also painful since the youtube videos just seem too complicated.

 

[somarco]

I have been around folks that "started" carriers before. The ones I knew bought a shell corp domiciled in AZ, DE or TX.

Buying a shell is relatively simple and inexpensive. Setting up reserves, getting DOI approval (especially outside the home state) is where the $$ get's serious.

 

[fed up]

Nationwide is going the Independent Agent route next year, similar to Allstate and Farmers. Farmers and Allstate will only allow their products. Buy In for an agency is somewhere around 100K liquid capital and that gets you a scratch agency (no customers, no policies). Purchasing a Book of Business will set you back a lot more but then you have some guaranteed income. Stat Farm agents typically mentor their underlings, or so I've been told, and then set you on a path to be in business for yourself but I think they still own the customers. Call any of them and they will all say they are looking for agents

 

[Persistency FG]

There is a lengthy regulatory process to own an insurance company. The "fast" way is to buy one, but even that can take up to a year to submit and review the Form A. The state department of insurance that you're filing with will want to see that you have deep pockets and a track record. It's important to note that there is not a guaranteed process where if you complete all the necessary steps then you get an insurance company. Even if you complete all the steps perfectly, the state DOI still has the authority to deny your application.

Despite that, if you're still interested in starting an insurance company, call your state Department of Insurance and find a law firm that has a strong insurance regulation practice.

 

[Scootch]

Bribes

 

[toolbelt]

Join an MLM because they say you immediately become a business owner just by joining.