Captive insurance agent
You might be wondering what is a captive insurance agent? What is the difference between a captive agent and an independent insurance agent? There are definite differences between these two types of agents. The type of agent you are will decide many things including; the type of insurance you sell, your commission rate/income and how and where you conduct your business.
Captive insurance agent:
Captive or exclusive insurance agents, have a contract with one insurance company, therefore they can sell only that company’s policies. If you are a captive agent, the company you work for usually gives you an office space as well as a good amount of training. In most cases, there will be an administrative staff to handle some office tasks and paper work. Additionally, if a potential client contacts the insurance company, the company will refer the client to one of the captive agents and you do not have to go looking for leads.
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Independent Insurance Agent:
Because independent insurance agents are not contracted with one insurance company, they have the option to offer policies with many insurance companies. As an independent insurance agent, you contract with several insurance companies to sell insurance coverage on a non-exclusive basis. Independent agents do not receive the support or direct referrals from the insurance companies. Independent agents have a wider variety of products to offer clients from various carriers, which can give the client a better choice of appropriate coverage options.
Captive insurance agent v.s. independent insurance agent:
It is important to understand the difference between a captive and an independent agent. For example, independent agents can earn substantially higher commissions; sometimes 50% higher. As a result, independent agents also keep all of the renewal payments. Captive agents usually receive a reduced renewal or no renewals at all. Independent agents can also work from home as well as have the ability to make their own hours. Unfortunately this means, independent agents have to pay their own overhead costs. This may require you to pay for office space, hire help to get paper work done, schedule appointments as well as make phone calls. All this will cost money. CLICK FOR MAX MEDICARE ADVANTAGE COMMISSION
Although captive insurance agents receive less commission, they do not have the overhead cost that independent agents have. They also sometimes receive a salary in addition to the commission for sales. Independent insurance agents must rely entirely on their own motivation to determine how much money they take home at the end of the day.