Starting An Insurance Company

Derrick · Post by **Derrick** » Wed Jun 16, 2004 1:54 pm

I am a 25 year old male and would like to start an insurance company from the ground up. I live in Tenneessee and would like to start offering auto, homeowners, or both. If any one has any information on how to get this started please let me know. I know how much capital I need to begin, I just do not know where or how to get it. Any information would be very helpful.

Thanks

loudmouth · Post by **loudmouth** » Thu Jun 17, 2004 10:43 pm

Are you interested in starting an Insurance Company or an Agency? Starting an Agency is a little difficult if you have no prior experience but with a little persistence you can do it. Starting an Insurance Company is a whole other issue and way beyond my scope of knowledge of the insurance industry at this point in my career. So, which is it?

DaveOK · Post by **DaveOK** » Fri Jun 18, 2004 6:10 am

You need to come up with a lot of money to get a bond with the state. You need to come up with initial capital to attract employees; including but not limited to actuaries, underwriters, claims, legal, administrative assistants, mailroom, IT, and then also you'll need the money to write a bunch of lawyers endless amounts of checks for name registration, etc. Don't forget your reinsurance contracts because you'll likely need ceding commissions to boost your reserves. It's a complicated deal and you'll need somebody who knows the business to do it. Insurance is a highly regulated field and it's probably a lot like starting a bank - except that in banking the Federal Reserve will not let you market a product that is not financially sound. State insurance regulators will even though they say otherwise.

Derrick · Post by **Derrick** » Fri Jun 18, 2004 6:46 am

Loudmouth,

I would like to start my own insurance company, but it looks like it is going to a lot easier to just buy agencies out that are already established.

DaveOK,

I have contacted someone who might be interested in fronting the capital. It will probably be a long process to start a company getting thru all the steps and making sure you do them the right way. Do you think it is a feasable idea?

Thank you both for your comments and hope to hear more from both,
Derrick