A Checklist for Captive Agents Transitioning to Independence

Many captive agents dream of transitioning to independence and running their own book of business. Becoming an independent agent comes with many benefits, including the freedom to run your business the way you like, the ability to offer a wider range of insurance products and services, and the opportunity to earn more money.

However, if you’re thinking about transitioning from a captive to an independent agent, it’s important to have all your ducks in a row. Read on for your checklist for transitioning to independence. Should you have any questions afterward, feel free to contact our team at Good Life Insurance Associates.

Being a captive agent provides you with income stability. While your paycheck may vary based on the commissions you earn, you also likely earn a stable base pay that you can always count on. You lose that stability when you become an independent agent.

Have Proper Startup Capital

Essentially, you are starting a small business. And truthfully, many small businesses fail in their first year; the top reason they do so is that they aren’t properly funded.

Having proper capital on hand is one way to “insure” yourself before you transition to independence. In many cases, this capital will be used to fund startup costs and customer acquisitions while also serving as income during the process of building your book of business.

Notify Your Current Clients

Before you officially transition out of being a captive agent, it’s important to notify your current clients. Keep in mind that you may be prohibited from soliciting them as clients as many employment contracts include a non-compete clause. However, you can build goodwill with both your current clients and your insurance company by helping them transition to a new agent. While you may not get any immediate business out of these efforts, you may set yourself up for future clients should they ever decide to leave your previous firm.

Create a Detailed Business Plan

Abraham Lincoln famously said, “Give me six hours to chop down a tree and I will spend the first four sharpening the axe.” These are wise words to keep in mind before launching your own business.

Before you get started, create a detailed business plan to serve as a roadmap for your journey from launch to established business. While you won’t be able to predict everything that comes up along the way, you will still be able to use this plan as a strong foundation in your journey to independence.

Secure Contracts with Insurance Carriers

One of the biggest benefits of being an independent agent is the ability to offer your customers products from multiple insurance carriers. To do this, you’ll need secure contracts with the insurance carriers so you have the right to sell their products.

Or, you can choose to make things less complicated by joining a national independent insurance agency like Good Life Insurance Associates. Here, our agency offers access to over 90 top-rated carriers.

Sometimes, it helps to not do all the heavy lifting alone. As an independent agent with an agency like GLIA, you can stand behind a strong and trustworthy name while also enjoying the perks of having your own book of business.

Often, experienced IMOs like GLIA also provide countless benefits, including a complete toolbox for marketing, sales, training support, and more.

Market Your Services

After you’ve secured contracts with insurance carriers, it’s time to prospect. The advantage of being an independent agent is that you have the freedom to choose how to market yourself! If you’re looking for more information on successful prospecting with creative strategies, read our blog on Effective Lead Generation Strategies for Independent Insurance Agents!

Consult with Experts Who Have Successfully Transitioned to Independence

The checklist above is by no means a complete guide to how to transition from a captive agent to an independent agent, however, it is a general guideline to help you in the beginning stages of planning your next move.

With a new year quickly approaching, are you feeling the urge to make a change? If so, our team at Good Life Insurance Associates welcomes your call. Transitioning from a captive agent to an independent agent is exciting and liberating, but we know it can be a little scary to step outside your comfort zone; that’s what our team is here for. If you’re ready to discover the Good Life, explore our business services and insurance carriers, and contact us today. We can’t wait to help you with this next exciting chapter in life!