What is an Independent Agent?
An independent insurance agent acts as a go-between for you and several insurance companies so that you can get the coverage you need. If an insurance agent sells policies from more than one insurance company, they are considered independent. If they are only allowed to sell policies from one insurance company, they are not independent. The independent agent acts as a middleman between people who want to buy or sell insurance. This makes it easier for the transaction to go through. Independent agents are not considered to be employees of any particular insurance company and are instead compensated through commissions based on the policies that they sell.
It’s essential to learn about independent insurance agents, how they can assist you, and how they stack up against other kinds of agents before you seek their help. This will give you a better understanding of who Retire Wisely is and how our insurance agents can help you.
What do Independent Insurance Agencies do?
Independent insurance agencies are not controlled by one insurance company. Rather, they offer a wide selection of companies and products to ensure the right solution is found for each individual. This means that independent insurance agents can offer different policies and products from different insurance companies to meet each client’s needs and wants as well.
The ability of the agency to provide service when the needs of its customers change or when they have a claim is just as vital as the marketing and sales efforts that it makes. That is why giving clients a choice is essential for independent agencies and agents. There is no such thing as “one size fits all” in the financial services industry.
How do Independent Agents Operate?
Independent insurance agents can give their clients a more comprehensive range of options when it comes to the types of insurance policies they can buy for themselves and their families. They take into account the various coverage requirements of clients and choose a plan that meets those requirements at a cost that is affordable.
Insurance agents have to bring in their own business. This is due to the fact that agents are not provided with leads in most cases, whether independent or captive. They may need to develop their own marketing materials and manage their own operations, even though the company will also benefit from the general advertising and marketing done by specific insurance companies.
The following are some of the fundamental responsibilities of independent agents:
- Exploring the best policy options available to customers.
- Searching for the best products and pricing for clients with the insurance companies.
- Analyzing the needs of the customer and choosing the most appropriate policy options.
- Developing and sustaining relationships with prospective clients.
- Nurturing effective communication with their existing clients.
- Accomplishing the necessary regulatory paperwork while also responding to questions and concerns from clients.
- Completing ongoing continuing education requirements.
One of the advantages that an independent agent can provide for a client is the ability to obtain multiple quotes from a variety of different companies. Also, independent agents can show you the rates and coverage options from multiple companies at the same time. This could make them a better choice for people who only want to buy one or two insurance policies. The greater the selection of insurance companies to choose from, the better the chances are for the client to obtain an affordable rate.
Independent Insurance Agents vs. Insurance Brokerages vs. Captive Agent
Captive Agent:
A captive insurance agent is one who exclusively works for one insurance carrier and sells policies that are only made available through that particular insurance company. If the client is only shown one possible product, it will be hard for them to figure out if they are getting the best product for the price, even though insurance policies sold by captive agents may be less expensive than those sold by an independent agent. Captive agents can show the prices that competitors offer, but they are not allowed to offer or sell the policies themselves. Also, they probably would not know enough about the product to offer much information
Insurance Brokers:
Both independent agents and insurance brokerage companies use the same sales method, which is to put the customer first and give them a choice of products from a number of different insurers. This method is common in the insurance industry. On the other hand, insurance brokerage firms are often much larger than independent insurance agencies.
Depending on how their business works, brokerage firms can be either independent or captive. Independent brokerages are not committed to selling only with one insurance firm, which means they are free to recommend and sell clients the right insurance coverage that is in the client’s best interest. A captive brokerage is one that is linked with a certain insurance company and has a contract in place with a particular provider to sell only that company’s insurance products.
Why Choose Retire Wisely?
At Retire Wisely, we have assembled a team of over 2,600 licensed financial insurance agents who are highly trained and experienced in the industry. We’ve created a genuinely unique Independent Marketing Organization (IMO) that meets the needs of our customers and agents by combining the best parts of multiple brokerage types and captive companies. We provide our agents with the resources and training they require to build their agency and market themselves in a manner that is both compliant and effective within the financial services industry. Contact one of our insurance agents today to learn more about careers with Retire Wisely!
FAQ
How do you become an Independent Insurance Agent?
To become an independent agent, you must learn, finish a certain number of course hours (determined by the state), and pass one or more exams. The amount of exams you need to pass is determined by the types of insurance policies you desire to sell. If you have the appropriate licenses, you will be able to offer a variety of insurance plans in a number of states. Before going out independently, many recently licensed agents get their feet wet working for an established agency first. As you progress further in your insurance agent career, it is necessary for you to obtain continuing education credits to remain compliant and knowledgeable.
How is an Independent Insurance Agent Compensated?
Like other agents, independent agents earn their living through commissions. Retire Wisely agents work hard to learn and expand their professional experience so they can continue to help consumers make the best choices for them and, in turn, build a profitable business.
How do you start an Independent Insurance Agency?
It is possible to launch an agency from the ground up, but doing so can be a very difficult endeavour. When you own an independent insurance agency, you can be your own boss, you can help other people protect their valuables and investments, and you have the chance to make a good living for many years to come. All of these benefits come from the fact that you are the agency’s owner.
This is why working with an IMO such as Retire Wisely may be the best option for independent insurance agents. You are independent without having to figure it all out on your own. Retire Wisely gives agents access to our leadership team, world-class training and support, and proprietary software to help them better serve consumers. Our agents have access to a wide range of contests and rewards that are exclusive to them, as well as advice and help from experts in the financial services industry.
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