Insurance agency can be a beginning of something new. It is energizing, yet scary at the same time. And you might think about how much is independent insurance agency owner salary would be. However, being an insurance agent is a standout amongst other insurance jobs. Whether you are an independent agent or considering moving towards turning into a captive agent in an insurance agency in Lubbock, it is critical to learn about the differentiations between the two.
Captive and independent agents are very comparative. The differences that set them apart can be positive for some people while also meaning troublesome for other people. The two types of insurance agents have their advantages and drawbacks. As an insurance agent, we know commission and benefits are fundamental, yet not all when deciding to be a captive agent or independent agent. Additionally, with a commission they also receive fringe benefits as stated by Americas Professor.
Gaining extensive expertise and honing skills can help insurance agents and brokers advance their careers and sell insurance in a competitive industry like insurance. Continuous development and capability upgrades will also help a manufacturer stay ahead of the market and learn how to sell insurance.
Captive Agent in an Insurance Agency
Unlike an independent agent, the captive agent only works for one particular insurance carrier. They are fully aware of the insurance carrier’s products, policies, and services and drive their motivation towards selling those policies to the clients. In exchange, captive agents are provided with a reliable source of compensation as they are provided with a commission, salary, and benefits.
Advantages of becoming a captive agent
Many people may want to turn into a captive agent as it gives a consistent source of revenue. It’s usually the correct decision for an agent who is merely beginning his career. They can still learn to sell insurance while still retaining a steady pay.
Since captive agents work for a single carrier, they pick up a thoroughly comprehensive knowledge of the carrier’s particular products and policies. Having detailed information about the organization and products makes the agent look confident and educated, helping to gain customers’ trust.
Likewise, if you are a captive agent you can also be a feature in the agent directory of the insurance agency.
Disadvantages of becoming a captive agent
Unlike independent agents, captive agents are tied with a single carrier. This makes them unable to provide the clients with a variety of beneficial offers.
Besides this, you are bound to sell what the carriers offer even if the rate is higher than what clients could find elsewhere.
Eventually, you are at the risk of losing your clients due to the limitation in your offerings and rates.
Also, you might be interested in knowing about how much does an insurance agency owner make.
Independent Agent starting an Insurance Agency
Unlike captive agents, independent agents work with multiple insurance carriers. They can provide clients with various insurance policies from multiple insurance providers and help their clients create customized products.
Advantages of independent agent
Unlike captive agents, independent agents are their own boss and free to conduct their business. Independent agents can sell more policies and can earn more commission.
An independent agent is more client-focused. They can provide their clients with more options and have better pricing and deals than captive agents.
Disadvantages independent agent
Unless you are an expert, being an independent agent might not be a right choice for you since you are staring your own business. Office setups, Paperworks and filing systems, marketing strategy are some initial things you require that an insurance agency in Lubbock can easily provide.
Which one would you choose to be in an insurance agency Lubbock?
Becoming an independent insurance agent seems to have a lot more benefits and freedom than the captive ones. Hence being an independent agent appears to be the better choice. However, if you are at the initial stage of your insurance career, being a captive agent might be an opportunity to learn and earn a respective commission at the same time.