Captive Vs Independent: Which is the Best Career Path for You?
When it comes to choosing a career in insurance, you have two options. You could go captive or independent. Both business models offer different options. Choosing one depends on your goals.
Choosing Between Being a Captive or Independent Insurance Agent
To be part of the insurance agent world, you have to choose one of two paths: captive or independent. How do you choose? Like any other decision in life, the information you have will make choices go one way or another. Therefore, you want to make sure you know the ins and outs of each before you make a decision. It’s a question of preference, benefit and how it aligns with your personal and professional goals. Here’s what you need to know about these two business models:
Captive Insurance Agent
As a captive insurance agent, you work with any one insurance company, in an exclusive manner. This means that for a captive insurance agent, the goal is to bring business to the company they work for and the goals should align with the companies goals.
Captive agents have financial support for things like office space and employee benefits, as well as receive product training, leads, referrals, marketing and advertising tools from the insurance company, among other things. However, this business model limits the knowledge that the agents might have about the insurance industry, since they will only be selling products that the company they work for offers, and if the company decides to make major changes to their product line in a way that customers don’t appreciate, it could take a toll on your sales.
Independent Insurance Agent
Independent insurance agents don’t have a contractual obligation to being exclusive to a certain insurance company. On the contrary, they have contracts with multiple insurance companies, which allows them to sell a wide variety of insurance products with different prices, making them more competitive and appealing to those looking for a one-stop-shop for all of their insurance needs.
As an independent agent, your goal is for your agency to grow by drawing in more clients and providing them with more products that better fit their needs. This business model turns you into an entrepreneur. You will manage your own expenses and admin costs and in most cases, you’d go at it alone. However, when you join Affordable American Insurance, you become family.
At AAI, we foster growth for independent insurance agencies by providing a ready-to-go business model and the tools needed for captive insurance agents to make the move into the independent world. If you’re interested in becoming part of one of the fastest growing independent insurance brokers in Colorado, Utah, and Arizona, contact us today.