How To Be Independent Insurance Agents?
What Is Independent Agent?
An independent agent sells insurance from multiple companies. Independent agents facilitate transactions between insurance buyers and sellers.
Independent agents sell policies for commission and are not insurance company employees.
A captive agent can only sell their employer’s products.
Main key Points
- Independent insurance agents or brokers work for themselves.
- Independent agents can sell insurance from multiple companies on commission.
- Independent agents can quickly research multiple policies and rates across companies, which can benefit customers.
Read: What is a Captive Agent or Captive Insurance Agent?
Independent agents’ procedures
Independent insurance brokers, like independent financial advisers, may offer customers more insurance alternatives.
They consider the client’s coverage requirements and choose a policy that’s affordable.
A captive agent offers just one company’s insurance coverage.
The captive agent’s policies may be less costly than those of an independent agency, but the customer won’t know whether they’re receiving the best price if just one choice is given.
Captive agents can reveal the pricing of rivals’ insurance, but they can’t sell it.
Even though independent brokers may offer coverage options from more than one insurer, they may not be fair.
Since insurance firms pay a fee to the agent when a new policy is sold, the agent may persuade consumers to choose products with a higher commission.
Since independent agents don’t work for just one insurance company, they usually bring in their own business.
They may have to make their own marketing materials and run their own businesses, but they benefit from the general advertising and marketing done by insurance firms.
If the independent agent doesn’t sell the company’s policies, the advantage will be restricted.
Independent agents’ consumer benefits
Independent agents can quickly get quotes from multiple insurance companies.
Independent agents can check several companies’ rates at once, making them a good place to start when shopping for insurance.
The more companies you check, the better your chances are of finding the best rate.
Prospective policyholders only need to provide their information once, saving them time.
Independent Agents vs. Insurance Brokerages
Independent agents and insurance brokerages both put the consumer first and provide products from many insurers.
Insurance brokerages are bigger than standalone firms.
Independent or captive brokerage firms exist.
Independent brokerages are not connected to any insurance companies, so they can sell any policy that is best for the customer.
Captive brokerages are associated with individual insurers and offer their goods exclusively.