If you are about to start your insurance career, learn how to get an insurance agency license. The insurance sector is gratifying, and it needs people who love assisting others in establishing financial security for themselves and their families, even in the face of adversity. If you want to work as an insurance agent, the first step you need to do is to obtain your insurance license. Passing a state-specific insurance licensing test is required to become an insurance agent.
There are two types of agents in the insurance industry like in Insurance agency Nashville: Captive agents and Independent agents. While looking further into them, they share similarities as well as differences. It is essential for anyone thinking to shift towards the insurance industry to know how to distinguish between these two.
Not all agents seek the same benefits and nature of jobs. This is why it is essential to understand that both agents have their own nature and characteristics and you should be aware how to differentiate between them.
To further understand the both in-depth and know which one suits you better, we have classified them conveniently.
Captive Agent in Insurance Agency
Captive agents are the agents that work for a single carrier. They acquire extensive knowledge about a single carrier’s products, policies, and services and then sell it to the clients. They focus on building the business for this particular carrier.
It is mostly a good start for agents that are just stepping inside the insurance industry. Captive agents gets paid consistent income source. This allows them to learn and work without having to worry about their earnings.
Captive agents goes through training process. Carrier provides help for administrative work , good incentives, and other motivational programs. It helps them understand the industry better and push them to grow in this area. In addition to that, they do not need to contribute to adding or creating marketing materials.
However, there are a few disadvantages of being a captive agent. There are limitations such as affiliation with only one carrier. Often at times, clients would be looking for a specific package that your carrier may not have. In situations like this, you do not have any other option but to sell whatever package you have even while knowing it’s not the one the client wants. Captive agents can lose clients if the clients don’t feel happy with the service. Losing clients would be a massive loss for the company.
Unlike captive agents, insurance agents are agents that are associated with multiple carriers. They work as freelancers and collaborate with various insurance agencies. Clients are provided more options and better pricing deals with different insurance policies from other agencies.
Captive Agents can offer mixed and matched policies according to client’s needs. For example, an independent insurance agent can provide packages combining from insurance agency Lexington and Insurance agency Nashville if the agencies support independent agents. This allows more flexibility in work and time as well.
Once you become an independent insurance agent, you need to devote yourself to this job as it requires consistency and work hard. It is basically like running your own business, so you should understand the clients’ requirements and be able to provide them with the best offers. There are also independent brokerages that insurance agents can join if they want to receive training.
You may search insurance agent near me, and get in touch with an actual independent agent to learn more.
Also, learn about independent insurance agents and captive agents as stated by smartfinancial.com.
Both agents have their shares of pros and cons. You will have to figure out which job’s nature suits you the best and choose that path. Since we are all different, we have other preferences and working mechanisms; hence, it is crucial to consider all these factors and only decide.
Also, you might be interested in learning about how much does insurance cost for a nonprofit organization.