Insurance Journal Forums

Hi All,

I'm an American citizen living in California. I'm interested to learn how an individual can start an auto insurance company. How do you get started and how much capital do you need? Can you underwrite policies and sell them to other insurance companies? Can you insure an insruance company?

Any help is appreciated.

Frank

Frank,

I have started an insurance company. Our largest line was auto. I can also help you with your other questions. I would be happy to discuss with you how to go about it. I would also be happy to assist you in developing the company, raising money, etc.

Please contact me by e-mail and let me know how we can proceed.

John

Frank,

I've been involved in start-up of a reinsurance and an insurance company several years ago and I may be able to offer assistance to you.

Akos Swierkiewicz,
IRCOS, LLC

As a follow up, what is the minimum age to start up an insurance company? I'm 15 almost 16 and I love financial stuff and I've always wanted to start up an insurance company since I was about 12. What is the minimum capital to start one up? Thankyou.

I would like some information on this as well. If there is anyone that could offer me some advice on this subject it would be much appreciated.

E.

Anyone coming to this forum to ask that question doesn't begin to have enough knowledge about how the industry works to think about starting up an insurance company.

You'll need more than money. Start with checking the state codes regarding insurance carriers for the state in which you want to be domiciled. Then remember you'll need to file rates, develop policy forms, pay insurance taxes, develop a sales force, purchase reinsurance, adjust claims, litigate lawsuits, and on and on....

At 16 years old, I think you would be told to wait at least two years by the DOI. (that is Dept. of Insurance)

Also, for your info, an auto insurer needs at least $10 million in policyholder surplus to begin the licensing process.

Most small insurance companies are independent insurance agents who set up a storefront of their own. First you'll need to be an insurance agent. That generally means getting licensed. The "insurance company" side of it would be pretty much like any other retail business. You'll need to be an entrepreneur and learn the basics of all sorts of business management tasks: accounting, marketing, managing staff, etc.

Instead of discouraging any one by their age - we should be able to support them. We had all grown up people at wall street, at fed, and all over in the insurance and financial market .... and oh yes, they were all licensed by state and fed government to do business in their prospective sub under insurance/financial industry. And yes, in this 21st century - they led us into this big mess.
The young man/woman who is already aware of insurance licensing part of the story.... they just want to picture out something where he/she may want to reach. He/She wants to plan ahead - to succed in the great world of the green buck. I don't mean to step on anyone's answer or finger pointing. It is just my view towards our next generation....