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Captive vs. Independent Insurance Agent

April 15, 2020

Most new insurance agents will face several decisions after becoming licensed. If you already work for a company that requested you to get licensed to compliment your current duties, then your future may already be pre-determined.

But for the rest of us, this exciting journey starts with asking yourself some tough questions… the biggest of which is “what’s next?

  • What kind of insurance do I want to sell… life, health, ACA, Medicare?
  • Do I want to become an expert on only one product, or do I want to cross-sell multiple products?
  • Maybe you got your license with one thing in mind, and then throughout the process, you started getting different ideas.

Whatever your answers are, you will need to get contracted and appointed with insurance carriers.

Now you have another very important decision to make:  Do I become a captive agent, or independent?

This article will focus on what that means, and some of the pros and cons of each.

Captive agents:

A captive agent is one who works for a company, either an agency or an insurance carrier. Many new agents are attracted to this option, either because of the training programs or the compensation structures they offer.

Going captive can be a great starting point as you embark on your insurance career, since it can be difficult to get up and running without the support you need, and a captive contract could offer you just that.

There are drawbacks, however, to this option. You are generally at the mercy of the company you work for.

You might not be able to expand your portfolio and sell products outside of what your upline offers, and you might be putting in all the hard work only to realize that you don’t own your book of business.

If you leave to explore greener pastures, you leave all of your renewal income behind.

Independent brokers:

An independent agent is in more control of their own destiny. You are working for yourself, but not by yourself.

You can offer as many products and carriers as you want, and if your contract is structured the right way, you’ll be on your way to building a business that will support you financially for many years to come.

The Brokerage, Inc. supports independent agents and agencies of all levels, whether brand new or seasoned pros. Our dedicated employees work hard to make sure your contracting process goes smoothly, you’re trained properly, and marketing efforts are supported.

Our agents are 100% vested from day one and are paid commissions directly by the carriers, not by us. You are free to engage in any business that you wish outside of TBI, and if you ever decide to leave or retire, the renewals that you’ve built stay with you.

So, whether you are newly licensed and trying to find your path, or an experienced agent wanting to take your business to the next level, come see us at The Brokerage, Inc.

David Ireland | Regional Sales Director


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