The Pros and Cons of Being an Independent Insurance Agent
by Admin
Posted on 25-11-2022 08:04 AM
Are you thinking of starting your own
insurance
agency and can’t decide whether to go the captive or independent route? we’ve got you covered!
starting an insurance agency requires a significant amount of time and effort. In the insurance world, it can be difficult to determine whether to go it alone or join a captive company — there are many pros and cons to both options.
Much of your decision depends on your level of experience, financial situation, and general knowledge of running a business. Here are the positives and negatives of both types of agencies, so you can decide what’s right for you.
There are two types of agents that sell insurance policies: captive and independent. A surprising number of consumers aren’t familiar with these terms or what they mean.
The same goes for plan review around the annual enrollment period. Rates for medicare advantage and mapd plans don’t always stay the same from year to year, and you may find your clients would prefer to switch plans. If they are dissatisfied with the carrier they currently have, and you can only offer them plans from that carrier, you may lose them as a client altogether. That’s why it’s beneficial for you and your client to provide them with varying options, and the only way you can do that is to become an independent insurance agent. Having a versatile portfolio requires that you’re knowledgeable about your market and the networks around you.
If you don’t want to work with an independent agent or agency, there are other ways to purchase insurance: use a captive agent: if you like a particular insurance company with captive agents, consider using an agent from that provider instead of an independent agent. Captive agents are well-versed in the company they represent and should be able to get you the best rate for insurance from that company. Purchase directly: whether you go online or over the phone, you can also get quotes and purchase insurance directly through the insurance company.
What's It Like Being a Captive Insurance Agent?
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there are many ways these days to buy an insurance policy. Some people may feel the easiest way is to simply go online and purchase it yourself. You could even shop many carriers yourself to find the best rate for the coverage you need. However, there are many more additional benefits you could gain by going through a local insurance agency. Save yourself time
as we mentioned above, yes you could shop for insurance yourself through several of the top insurance carriers. But, what is your time worth? by shopping with a local insurance agent, we can do the shopping for you.
Independent agents work with a variety of insurance companies to get you the best coverage at the lowest prices. An independent insurance agent has access to many markets to provide you with the policies you need. This access to choices can mean lower rates, less restrictive policies, and better coverage. Independent insurance agents can often provide ways to cover potential gaps in coverage with the use of policies that work alongside the insurance you already have.