Starting your agency can be difficult. Even if you have a long a career as a captive agent, a new agency owner is pretty much starting from scratch. That means you have to build your client list from scratch and qualify for carrier representation. There are the two things that most independent agents find the most difficult when they are first starting out.
Carrier representation for new agencies
You may have had a great reputation for sales and a great reputation with clients, but when you go independent, all of that doesn’t matter. The carriers and insurance providers you are going to be representing are most likely not who you were working for as a captive agent. Despite an impressive track record, once you start your agency, you have to build your reputation from the ground up.
You have to be able to show a certain amount of production and growth to potential carriers before they will allow you to sell their insurance.
That’s the catch-22 of the independent insurance world. You need to produce to impress more carriers so that you can add more options to your portfolio and better serve your clients, but you need carrier representation to grow and produce. It’s a delicate balance and one that requires skill, patience, and more patience.
Some independent agents will start by buying a book from another agency that is closing, taking over clients and carrier representation, but you still need to prove yourself, and you still need all your skills to hold on to those clients.
Avoid carrier production requirements
Once you do get through to a few carriers, you have to fulfill certain requirements to keep that carrier. If you don’t sell, they take away their representation. To succeed as an independent insurance agency, you need to represent as many carriers and providers as possible. The more carriers, the more options you will have to serve your clients, and each carrier is going to have different types of insurance.
Being an independent agent gives you a unique opportunity to personalize your service and cater to each client’s specific needs. Every client is different, and you want to be able to go through all of your carriers to make sure you are getting each client the best insurance available for their lifestyle. This is what makes independent agents special: personal customer service.
Fastest growing insurance broker in Colorado, Utah, and Arizona
If you want to avoid chasing your tail trying to produce to get carrier representation, Affordable American Insurance invites you to join our team of independent insurance agents in Colorado, Utah, and Arizona. By joining our network, you can bypass the carrier production requirements, as well as have immediate access to our carriers. By starting your agency with us, you can hit the ground running, start producing immediately, and be able to offer your clients optimum service. Plus, you have round-the-clock support from our carrier representatives, corporate staff, and fellow agents.
At AAI, our carefully selected agents think like a team, act like a team, and win like a team!