Benefits of Captive vs Independent Insurance Agent

Every licensed insurance agent has one major choice to make when they start their careers. They can either work with a single insurance company as a captive agent or be an independent agent with the freedom to work on their own.

While newer insurance agents may like the security of being a captive agent, there are actually plenty of benefits and advantages to being an independent insurance agent. Here are some of the top advantages.

More Options

As an independent insurance agent, you’ll have the choice of which insurance companies you want to work with. You aren’t tied down to one single insurance company and the products it offers.

This choice provides you with a number of benefits. First, it allows you to work with the companies that reward you the most wit high sales commissions, which can help you maximize your earnings.

Second, it allows you to potentially attract more customers since you’ll be able to offer a variety of products. You won’t have to market a narrow selection of products and services like captive agents do.

Finally, this choice can ultimately lead to happier customers. If a prospective customer is interested in purchasing a life insurance policy, you’ll be able to present them with a wide selection of potential policies that could fit their needs. This will make customers happy since you’ll be helping them get the policy that’s best for them, and not just trying to fit a specific policy from a specific insurance company.

More Support

One of the main reasons why insurance agents decide to be captive is the support and security they think they’re getting by being on staff with one insurance company. While you are technically out on your own as an independent agent, there is plenty of support for you — sometimes, even more than if you were a captive agent.

Many independent agents work with an Insurance Marketing Organization, or IMO, to support them in their efforts.

IMOs provide training for both specific products and general skills, such as sales. They make it easier for agents to get approved to sell for major insurance companies. And they provide easy-to-use quoting tools that are often expensive for an independent agent to purchase on their own.

Independent agents who work with a respected IMO are never on their own. They have the support of talented professionals who have their best interests in mind.

More Freedom

Independent insurance agents are small business owners. As such, they have control over their own destiny, in more ways than one.

If they want to focus on a specific region, a specific clientele, or a specific insurance product, they can do that. If they want to set different working hours than a typical 9-to-5, they can. If they want to invest in themselves by networking at local events and being a bigger part of their community, they can.

Many insurance agents prefer not to be captive agents because it gives them the freedom to run their business how they’d like to run it. Sure, running your own business can be scary at times, but there is plenty of support independent agents can draw on to keep them going while they create the structure that works for them.

More Personalization

One of the best aspects of being an independent agent is the ability to personalize your service. Independent agents aren’t tied to specific guidelines when it comes to marketing and branding.

Being an independent agent means you can personalize everything from the colors of your brand, to the specific messaging you choose, and the specific people or communities you’d like to serve.

Being able to personalize your business to your personality and interests can go a long way in ensuring your happiness in your career, which can lead to more success in the field.

You’ll also be in control of your own reputation. While you’ll be selling insurance products from well-known companies, your success isn’t directly tied to any one company’s brand or reputation. This means your business will sink or swim based on the reputation you build with customers, and not the reputation those companies build for themselves.

Having the freedom to personalize your brand means you can also serve your customers better. You can give them personalized service that they desire so you can build better insurance packages that serve their needs more.

In the end, when you’re able to be more hands-on and personal with your clients, they’re more likely to be satisfied with your service. In the end, this will lead to longer-term clients and a larger book of business.

Contact us today to learn how we can help you establish and grow your insurance business!