Insurance franchises are not very popular in Australia.
The concept has a slow acceptance because large banking and insurance companies are the main competitors.
What's more, a lot of people take up insurance automatically with superannuation, home loan, etc.
Thus, the insurance franchisee has limited scope to convince potential customers about the covers.
However, not all is that gloomy. The limited insurance franchise competition is a niche market on its own. This is especially true in the countryside and small towns where banks and corporate businesses have a limited influence.
Contrary to the US market, the Australian insurance franchise is a relatively unknown concept.
However, Australia is still an excellent territory to sell insurances.
Essentially, the insurance brokers make money by selling insurance products to their clients.
But..., this is not that simple.
As the insurance broker you need to understand the variations and the suitability of the cover.
There are courses which offer proper training to become such a broker.
In most cases the training is paid by the employer.
However, if you want to be your own boss then franchisor will arrange this kind of a training.
The funny thing about the insurance franchise is the fact, that the franchise is the only way to run your own insurance business.
Other alternatives include working for someone or opening your own insurance business. It is not easy to sell insurance. There are no immediate benefits and people have grown suspicious of insurance companies. Thus, the insurance franchisor has to provide a proper business analysis of the territory you will run. Unfortunately, some franchisors may try to overwhelm you with jargons and fancy charts. Flashy corporate brochures and jargon-driven adverts are not an indication of the successful franchise.
What you need from the franchisor is the information on:
Franchisor should have done some sort of business investigation to estimate the success of the operation in the area.
There are never guarantees but financial businesses are known to "waffle" their point trough rather than provide facts.
In Australia, the concept of the insurance franchise is not well known.
There are some companies which offer the insurance franchises but not many have proven the success.
Currently, we would recommend Rural and General Insurance Broking Pty Ltd (RGIB). The company initiated its franchise operations in October 2010. They offer a comprehensive package for the franchisees. This includes:
RGIB does not disclose the price for the total investment but foreign insurance franchises range between $50K to $100K. The good news is that there is no need for a large working capital. Most insurance franchises can operate from home. However, some franchisors may insist on having business premises. Nonetheless, for Australian market a mobile insurance franchise is a financially safer business model.