4 Advantages of Becoming an Independent Insurance Agent

As an insurance agent, one of your biggest career decisions will revolve around whether to become an independent agent or what’s commonly called a “captive” agent. Captive agents work exclusively for one insurance carrier or an umbrella group of providers, whereas independent agents can sell for any insurance company with whom they are contracted.

So, which is better for you? Those who choose to become independent agents usually base their decision upon the following four benefits:

You can offer a wider variety of plans. Particularly for insurance agents who sell Medicare plans, it can be important to maintain a large portfolio of options for your clients. This way, you can truly match them with the best plan for their needs, and they’re more satisfied as well. When you offer what a client really needs, rather than a limited menu of options, it is often much easier to make a sale.

You will be your own boss. Since you’re working for yourself, you set your own hours and work practices. You might also work from home or other locations. And since there are no contractual obligations, you don’t have to worry about meeting monthly or annual quotas.

Higher earnings potential. Limited options will often mean clients walk away without making a purchase. Offering a wider range of plans from more carriers means that you can better please your clients, and more of them will follow through by enrolling in a plan. More sales means more revenue, and happy clients mean more referrals in the future.

Greater support services. Independent insurance agents can participate in Field Marketing Organizations (FMOs), which support you with training and marketing resources. Your FMO can also help you to network with providers, so that you can build your portfolio of offerings. In some cases financial support for building and marketing your business will also be available.

Those who don’t want to be their own boss, prefer to work under quotas and deadlines, and don’t appreciate unlimited income potential might be happier working as captive agents. But for everyone else, independent agency is the way to go! Contact us to learn more about our support services, so that you can get started on the road toward a fulfilling career today.