How can an insurance company be started?

[Etini Willie]

Owning an insurance company is a good business. It is the business of risk management. Like every other business, it has it's own set of requirements that would enhance a good start and subsequent running of the business. Of course, every business needs a business plan to give the idea and the visioner a sense of direction. After getting the basic business plan, you need to put other things in place to start the insurance company. These include

1) Obtaining licensing: To operate an insurance company, you need a license. The license is gotten after you have sat for and passed courses that have to do with insurance. The course might require you to take between 20-40 hours of weekly study of insurance and ethics.

2) Deciding on the structure of the proposed business: It has to be decided if the company would exist as a sole proprietor or limited liability company.

3) Propose a name for the business: As part of branding efforts for the business, you have to find a name for the business.

4) Secure a Tax Number: You would need a tax number in the bank. It is important for corporate accounts.

After that, you can register your insurance company.

 

[saoussen5765]

I think licence for insurance company is very expensive and you find yourself working years to gain some money to recover the expenses, rest of steps aren't hard like licence one.

 

[Bisolami]

I think licence for insurance company is very expensive and you find yourself working years to gain some money to recover the expenses, rest of steps aren't hard like licence one.

I think licence for insurance company is very expensive and you find yourself working years to gain some money to recover the expenses, rest of steps aren't hard like licence one.

You are very right about this and this is why some people do not end up doing their dream business because of the licence. It is very hard to get a licence especially when you are not to well-connected and this is why you sometimes realise that insurance companies or other companies always partner with people so that things will be easy for them.

You sometimes realize that some of these people pay government officials to give licence to their companies faster and I hope you understand what I am saying because it happens here very well.

And there are times that it takes years before they give license to your insurance company so if the person is truly passionate, he should calm down