For agents licensed by the Insurance Commission. A small insurance agency sells and renews car, fire, accident, travel and life or health policies for the insurers it represents, and earns a commission on each one. Most start as a licensed agent with a small office and one assistant; the money is made on renewals that come back every year and on service that keeps clients.

This guide walks through what it takes to start a small insurance agency in the Philippines: the capital, the monthly costs, the permits and the first 90 days. The peso figures are sample estimates for a licensed agent's office in Cebu as of October 2026; get your own quotes before you decide.

How much capital you need

The sample comes to about ₱200,350 including one month of fixed costs kept as a cash buffer. It splits into office setup (₱93,500), licences and training (₱19,000), deposits (₱36,000), launch (₱10,000) and working capital (₱41,850). Other ways to start: home-based agent at ₱30,000–₱70,000 and agency with a team of licensed agents at ₱400,000–₱800,000.

Monthly costs and break-even

Fixed costs in the sample are ₱41,850 a month; the biggest are assistant (₱15,600), office rent (₱12,000) and electricity and water (₱3,000). Each policy sold earns about ₱1,840 after its own costs, so the break-even is 23 policies a month, and the startup capital takes about 6 months to come back at full sales.

Permits and registration

Register the business name with DTI (or SEC or CDA), then get the barangay business clearance, the Mayor's permit through the city or municipal BPLO, and BIR registration; register with SSS, PhilHealth and Pag-IBIG once you hire. A small insurance agency also needs: insurance agent's licence (life or non-life), general agent's licence (if appointed) and a licence for every agent on your team. Requirements and fees differ by city, so ask each office for its checklist first. DTI Negosyo Centers help for free.

Where to set up

  • Near car dealerships and vehicle registration offices
  • Business districts with many small shops and offices
  • A shared office or business center with a meeting room
  • Along a main road with parking for clients

Mistakes to avoid

  • Policies lapse or are cancelled. Call before every due date, match the payment mode to the client's income, and log chargebacks monthly.
  • Mis-selling a policy. Explain the cover, exclusions and costs in plain words, and keep a signed record of what was explained.
  • Claims that go badly. Help the client prepare complete papers, follow up weekly and keep the insurer's claims contact close.
  • Premiums handled carelessly. Have clients pay the insurer directly where possible; otherwise give a receipt at once and remit on time.

Plan it with the starter kit

The Insurance Agency · Negosyo Starter Kit has every worksheet behind this guide in a 26-page PDF, plus an Excel calculator: type in your own quotes and it works out your capital, break-even, profit and payback month. It costs ₱499 and downloads right after payment.