I am an insurance agent for a company. I have always been intrigued with becoming an independent agent, but I really don't know much about it. What are the good and bad things to becoming independent? What is the income/income potential? Any advice or adverse information is appreciated! Thanks!
2007-03-14 05:07:30 · 9 answers · asked by FromTheTop 1 in Business & Finance ➔ Insurance
i went through the same thing you did. for me i think it is better to be independent because you can have the best product at all times. The only advantage i had as being a career agent was the company provided leads, but only for a limited time. then they expect you to do everyhting for yourself. If you need training because you are new in the business, i would start out as a career(company) agent and use them for the training. I get a higher contract being independent, therefore i get paid more. Some people say you are on your own being independent, that is not true, marketing company's have plenty of training and knowledge and thats where you get your contracts. i use a couple different marketing organizations for each line of products.... 1 for senior health and life, another 1 for annuities and another for major medical. they all have lead programs around 375 per 1000 mailed leads. contact me by email if you want more specific info. You dont have many choices being a career/company agent.
2007-03-14 05:28:32 · answer #1 · answered by xbox360geek 1 · 0⤊ 0⤋
Becoming An Independent Insurance Agent
2016-11-16 04:33:39 · answer #2 · answered by echazabal 4 · 0⤊ 0⤋
Independent insurance agents control most of the commercial market share. There is a lot more premium and profit in writing commercial insurance than there is writing mostly personal lines. Plus if you work for a direct writer there is a good chance that you wouldn't have a market for more difficult to place businesses such as contractors, volunteer fire departments, franchise car dealers, etc. Also many Independent insurance carriers offer some type of profit sharing if you have enough premium volume with them.
One thing that hasn't been mentioned is that Independent agents have more influence on the laws and regulations that each state and the federal govt regarding insurance matters.
2007-03-15 08:57:59 · answer #3 · answered by Paul K 1 · 0⤊ 0⤋
The pros are that you get to choose the companies and products you represent and that the commissions are substantially higher. The cons are that you typically will have to fund your own office, assistant, benefits etc. If you are a good producer, you can make a lot more money and have a better quality of life as an independent. You can also hold onto clients. For example, what if your company's product(s) are no longer competitive for your clients. As an independent, you can simply quote different companies. Most of the larger cases are written by independents.
2007-03-14 05:17:13 · answer #4 · answered by ny2fl 2 · 0⤊ 0⤋
I'm very biased, being an independent agent most of my life.
I think there's more money too it, as you can write a much more broad base of clientelle. Additionally, it's easier to develope a "niche" which really makes marketing easier. Anything the direct writers do, marketing wise, the indpendent companies will also do, including sharing your marketing costs.
The best thing is you can write nonstandard business easier, through excess and surplus markets. These days, NEW businesses are pretty much "nonstandard", but after a few years, they EASILY convert to a standard market. And then you have customer loyalty, for being able to help them out at a time when State Farm couldn't.
2007-03-14 08:06:26 · answer #5 · answered by Anonymous 7 · 0⤊ 0⤋
There is a lot of information about this question at www.insurance-forums.net/forum/ Just run a search for going independent... As others have mentioned, there are advantages, especially in the amount that you CAN earn, and also in the flexibility to sell whatever product is actually best for the client. a lot of indy agents say that that is very important to them. In any case, if you do make the switch, make sure you talk to a bunch of people about it, and get a feel for what you are really up against.
2007-03-14 15:16:45 · answer #6 · answered by insureman613 3 · 0⤊ 0⤋
The independence is its own biggest pro & con. That is because some people dont have the self motivation for self employment. It is very different being your own boss. It can be good or bad. If you need someone to be over you to motivate & structure you, you should not be independent. That is one of my biggest obsticles as an indi.
The pay is certainly higher, but again, if you are getting double the rate, but a 1/3 of the business, it doesnt help.
2007-03-15 02:39:02 · answer #7 · answered by ricks 5 · 0⤊ 0⤋
Independent - you're not a company employee, you can work for yourself or another independent agent or broker. That has it's good and bad points. You're now self employed with company pay check to rely on.
Income potential depends on your ability to get business.
It is going to depend on how you feel about being in business for yourself and your ability to run your own agency. Not everyone is cut out to be self-employed.
2007-03-14 05:13:12 · answer #8 · answered by Faye H 6 · 0⤊ 0⤋
This question is worth people's attention
2016-08-23 21:08:55 · answer #9 · answered by ? 4 · 0⤊ 0⤋