How to Open Independent Insurance Agency?
Whether a long-time veteran or a novice who has just embarked on a new journey with ambitions of establishing a successful career in insurance, every insurance professional probably goes through one question, staying captive or going the pathway of an independent insurance agent. For independent insurance agents, this choice can be an overwhelming experience as well.
Whether you want to remain a captive agent or become an independent insurance agent, this decision is an important choice because it can determine the trajectory and fortunes of your insurance career path. Hence, making the right move can have a resounding effect on your career.
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Types of Independent Insurance Agent
If you want to become an insurance agent, there are two pathways that you can go. Generally, there are two types of ways an agent can work in the insurance industry in Atlanta. According to Investopedia, firstly, by becoming a captive agent, and the other is by becoming an independent insurance agent.
- Captive Agent
- Independent Insurance Agent
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A captive agent is another type of insurance agent who only works for one insurance company. They represent one company that pays them in a form of a combination of salary and commission. Furthermore, they also receive extra benefits. Moreover, a captive agent may be a full-time employee or an independent contractor.
Since captive agents work for only one company, they only have knowledge of their particular company’s insurance products. Therefore, they cannot help a client who does not need or does not qualify for that company’s products.
Captive agents often excel at providing an exceptional level of service to their clients. This is so because they have the freedom to spend more time on relationship building, fact-finding, and customer service. Captive agents have their own limitations and restrictions but enjoy different benefits as well.
Independent Insurance Agent
An independent agent is a person who sells insurance products provided by various insurance companies, rather than a single insurance carrier. As a result, the self-employed are more likely to develop and research their careers. Therefore, the independent agent is essentially the intermediary that connects the buyers and sellers of insurance to facilitate a transaction. Therefore, independent agents receive commissions on the policies they sell and are not considered employees of any particular insurance company.
What an Independent Insurance Agent Should Know on How to Open Independent Insurance Agency?
An independent insurance agent needs to understand these concepts:
- Firstly, no single carrier employs Independent Insurance Agents.
- Secondly, these agents are liable to sell insurance from multiple different carriers and get paid in commissions for every sale they make
- Finally, Clients prefer independent insurance agents because they can procure multiple different quotations and policies.
In a nutshell
Choosing whether to become an independent agent or a captive agent can be an overwhelming experience but this decision holds a lot of weight. Hence, an independent insurance agent should make the right choice.
Furthermore, here’s where you can learn more about Independent Insurance. Also, learn more about Insurance Agents to find the best insurance agents in your region. Learn more about Insurance Marketing Tips by clicking here. In addition, marketing for insurance allows you to broaden your knowledge on the topic.