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Blog » A Survival Guide for Startup Insurance Business

A Survival Guide for Startup Insurance Business

Last updated: 17 Aug, 2023 By | 6 Minutes Read

Survival Guide for Startup Insurance Business

We all know how recession hits the businesses, and if you are looking for a recession-proof business, then insurance is of those industries which are untroubled by the state of the economy. There are around 5977+ insurance firms in the US alone, and at least 1.1 million people are working as an insurance broker, agents, and service employees. Though insurance business is a customer-centric industry, yet profitable. We have analyzed some essential points to deliver the best guidance on starting off your own insurance business

As per recent research carried out by the U.S. Bureau of Labor Statistics, it was found that 90% of startups fail. Furthermore, of all businesses, approximately 60% of startups make it to age 3 and about 35% survive to age 10. And startup insurance business is no exception to this study. It is a fact which is scary and ought to be taken seriously.

Think about all the time, money and efforts that go to drain whenever a startup gets on a verge of closing down. Such is the waste of years of dedicated research and execution, the capital you borrowed from your other founders, family members or friends. Above all, image the money that goes down the drain, never ever to be recovered again that easily.

Even though every insurance business varies in functionality and service offerings; success nevertheless is based on hard work, ideas, innovation, burnout, decision making and perseverance of a startup business. To avoid getting their startup business to fail or close down, insurance businesses have started opting for outsourcing insurance back office services and a lot of them have revived since then.

Tips to Avoid Being in the Insurance Startup Failure Rate

If you are one of the insurance companies that are new to the world of outsourcing, Tholons mentioned about the Best 100 destinations for outsourcing, which comprised of countries like the Philippines, India, China, Bangladesh and much more. In another study, countries that made it to the top 5 preferred outsourcing countries included India, China, Malaysia, Brazil, and Indonesia.

Apart from engaging the services of insurance BPO companies, listed below are a few additional tips that you can follow to avoid being in that list of 90% of the startups that fail as soon as they launch.

1. Stop being overconfident and accept the facts

As stated in an article in startups.co.uk, titled, ‘How not to be another startup?’, arrogance in business is dangerous. Always making an effort to stay grounded implies paying attention to things that matter, like ensuring the top-notch quality of the products or customer support.

2. Be adaptable 

In case the first idea does not seem to work out for your business, move to plan B or C. Understand what your customers expect from you and come up with a marketing plan depending on that. One needs to remain attuned to the needs of their customers, as stated in a white paper published by Dun and Bradstreet, titled, ‘How to keep your startup business from failing?’

3. Maintain balance

During the initial few months of your insurance business, it is usual for you to face a great deal of pressure and stress. As per the inc.com, this happens as a result of lost focus, missing the passion and burning out. Thus, we advise you not to neglect your work-life balance at any cost.

Starting a startup insurance business is a risky decision in itself. You will make a lot of mistakes and this is unavoidable. However, it must not hamper your goals and your motivation to keep moving in the forward direction. Understand where you went wrong and learn from your mistakes. Come up with solutions to overcome your challenges. You may fail, but if you continue to keep trying, you will attain success.

Insurance back office companies can act as an extension of your in-house team of insurance experts. They have been helping a lot of businesses across the globe. Companies like Cogneesol Inc. have a pool of knowledgeable and competent experts who can carry out non-core everyday business functions on your behalf.

Bottom Line

Engaging the services of an insurance BPO company is not a new business strategy and nowadays even the small and mid-scale businesses understand the benefits they obtain when they choose to take the outsourcing route. Email at [email protected] or call +1 646-688-2821 to understand more on how outsourcing can help your insurance business.