Car Insurance / Household Insurance

When everyone heard of insurance business, they will picture that they are begging someone to purchase an insurance policy.

While there are no laws to enforce everyone to buy a life insurance policy, it is not the case for motor insurance.

I am referring to car insurance and household insurance. Car insurance is compulsory for every car owner where household insurance is getting popular to cover burglary loses.

What is the market potential for Part Time Insurance?

As long as you have a car, you need a motor insurance. As long as you have a house, your need a household insurance policy. The market is huge. We need to renew our road tax every year and we cannot do that without an insurance coverage. The typical commission for a motor insurance policy is about 10% of the premium paid. For example if your car insurance cost about RM500.00, RM50 is going to your insurance agent.

As for House hold insurance such as house content, burglary and fire insurance. It is one of the necessary protections now a day. A typical house hold insurance cost about RM200 a year which cover lost of your house content due to break in, fire etc. The commission for household insurance range from 10 to 25%, that means a RM200 policy will earn you about RM20-RM50.

Best of all, you have a pool of ready customer at your work place and neighborhood.

And most importantly, this is a recurring business, you customer will tend to renew their insurance policy with you again the following year provided they satisfy with your service. If let say you manage to get 50 customer every year, your will have 250customers in 5 years time. RM50 per customer will give you an income of RM12,500.00 a year and approximately RM1,000.00 per month. Consider the 70% of your customer continue to purchase insurance from you, you still make a good income of RM600 a month.

How can I start this Part -Time Insurance Business?

As long as you are above 18 yrs old and having passed your SPM, you are qualified to be an insurance agent. All you need to do is call any general insurance company near you ( Kurnia, Tahan, Berjaya, Lonpac etc ), they will assist you to take an exam before you can become an agent. The exam is objective question and all the study material will be provided, just like you are taking your driving license. All the exam fees will cost you less then RM60.00

Once you pass the exam, you may be register with the general insurance company that you would like to work with ( I suggest a company with an office near your workplace or house ).

My opinion

This is a service oriented business where customer service is very important. If you think you are service oriented person, this is a good business as motor and household insurance is necessity, you don’t need to pursue a person to buy car insurance as they will not be able to drive their car without one.

What I like most about this business is; it is a recurring business. You customer base will be accumulated from one year to one year. Once your foundation is being built up, you will enjoy the journey in long run

With the help of Computer, Internet, e-cover note and e-roadtax, everything can be done at finger tips.

Low investment and good income potential.