I'm looking at opening an insurance agency. Wondering whether to go with as an independent co. or brand name

Question

Looking for the highest commissions available

Answer 1

I own an agency and I decided to be independent. The biggest reason that I chose to go independent (which wasn't mentioned above) is that alot of the time if you are a captive agent you don't own your book of business..if you don't own your book you really don't own anything. You're expenses will be higher as an independent, but there is still sub money available to you with some companies and you can write off all of your expenses. Also, as an independent, you're not dealing with your company breathing down your neck to produce. You can go at your own pace, which is exactly what I was looking for. I don't want to be a "door knocker". With good company diversity, I can place insurance for anyone that comes through my door.

Answer 2

Starting An Independent Insurance Agency

Answer 3

I too would advise you to go independent. The independent system is thriving! As the others have stated before, you have the most flexibility with regard to the companies you deal with and after you've established a good track record you can be rewarded even more. That flexibility allows you to tailor insurance programs for your clients that may not be available to a captive agent (e.g., State Farm, Farmers, Nationwide, etc.). For example, Allstate stopped writing new homeowners policies in TX this past Mar. As an agent for them, especially one that is trying to grow, that could be a difficult pill to swallow.

I recently started my own independent agency about 6-months ago (after being in the industry for several years) and haven't regretted that decision at all.

Please note, do not open your agency if you're trying to get rich quick. That's a sure recipe for failure. If you like insurance and working with people, it can be a good industry for you, which after a couple of decades can give you an extremely comfortable retirement.

Best of luck!

Answer 4

My friend and I opened our own Independent Insurance agency back in 1992, most of the companies we started off with gave us a 12% as earned commission one gave us a 10% commission paid in advance, which was really great until a policy would cancel and then we were hit with return commissions. Anyway to the point as the years went by we established a good relationship with our companies and kept our loss ratios down we were offered higher commissions even special programs that were offered only to us, but this took years.

In talking with my friends who were captured agents they had some pluses by being captured and whole lot of cons. Some of the pluses were assistance with rent, utilities, advertising, payroll and so on basically a nice safety net. Cons were lower commissions (about 10% on P&C paper), you couldn’t sneeze without the parent companies permission and you had to tie up a lot of your own money for the franchise.

So I guess the answer to your question is open an Independent Agency if you want higher commissions. Just remember your risk is a lot higher too because everything falls on you and your business savvy. Remember to try and keep your debt to a minimum. When my friend and I opened our office we had about $500 in cash and about $20K in credit available between the two of us so we were taking a big leap of faith. But it worked out well in the end. When I was 35 I sold off my share to my partner and retired. Good luck!

Answer 5

They'll both pay about the same. The difference is, what is your long term goal? In the long run, you'll have more flexibility to place more business with an independent agency, however, in the short run, it's easier to get an appointment with a brand name company.

In the long run, the independent agency will make you MUCH more money.

Answer 6

Go independent. If you become a general agent for one or more carriers, that complicates things. They also have a say in how you do business. If you remain independent, you can simply become licensed or get assigned with the carriers you want to do business with and sell your clients the best product to fit their needs instead of having an agreement with select carriers to write with them. I am an independent and that is what I prefer.

Answer 7

If you do want to go independent, you can get some great advice at the insurance forum. www.insurance-forums.net There are lots of successful agents that can help you know what to do.

Answer 8

My dogs knows my sons name. I ask her to find Oskar and she runs to him. It's probably because he's only a toddler and I'm constantly saying his name, and were at home most of the day so she's hearing me call his name a lot :)

Answer 9

Get insurance quotes

Answer 10

amazed that I found this topic already answered! It's like you've read my mind!