Being your own boss has many advantages, but it’s a lot of responsibility, and the hurdles to becoming an independent agent are steep. What if there was a way to skip that giant roadblock that comes with getting started as an independent agent?
Welcome to the world of insurance agent aggregators.
Is Going Independent as Great as It Sounds?
If you’re reading this, you may be what’s known as a “captive agent” or an “independent producer.” Maybe you work as an agent under a single giant company like Allstate, or you might work as an independent producer for an established independent agent.
Regardless of the scenario, you’ve realized that sitting in the captain’s chair has some serious perks. One of the most important benefits is that you’ll own your book of clients and can cash out one day by selling the book to the next person looking to make their mark in the world of insurance.
The Downsides
Let’s explore a few of the caveats when it comes to being a standard independent insurance agent. While the perks are great, they come at the expense of a lot of missed personal time and a whole lot of backend work keeping insurance carriers happy.
More time spent dealing with insurance companies means less time selling policies to your clients. Furthermore, because independent agents work as brokers for a few different companies, they have to juggle the wants and needs of each of these companies in the form of strict production quotas. Miss your quota and you’ll get dumped, leaving you with one less option to offer the next client that walks through your door.
This is a reality for many independent agents, and stories of trying to sign on another insurance company only to lose an earlier one due to missing a quota are plentiful. What this means is that independent agents end up right where they started, a captive agent with a two- or three-headed boss rather than one.
How Are Aggregators Different?
A buyer’s co-op is the simplest analogy for what an insurance aggregator is. Instead of cutting costs by buying in bulk with a group of other buyers, you work as an independent agent, along with several other independent agents, under the umbrella of the aggregator.
What this means is that your combined production numbers can meet even the strictest production quotas of the biggest insurers. The aggregator can sign on more and more insurers, because no matter what, they always hit their production numbers.
How would you like the ability to offer your clients ten options instead of two or three? Even the best independent agents could only dream of having that many avenues to a sale.
Retain More Current Clients and Sell More Policies
Recurring commissions are fantastic, but what isn’t so great is watching one of your bigger fish walk out the door because of a policy premium increase that you were unable to stop.
An independent agent can scramble to place that customer with an alternate company, but with only one or two other insurers to turn to, there might be nothing that can be done. The aggregator, on the other hand, has ten or more companies they can move the client to in order to retain the business.
The aggregator also handles all the onerous backend insurer work that takes up so much valuable time from an independent agent—time that could be spent selling more policies.
While the aggregator obviously needs a cut to pay for all of this, the huge increase in productivity makes up for it and provides unmatched flexibility. Not having to worry about hitting your production quotas also means that you can take a day off when you need to–you won’t have to spend all week pushing numbers for one insurer just so you don’t get dumped.
The Road to Freedom
When you combine all of these benefits, it sounds like a good deal–but it gets better.
By working with an aggregator like Insurance Pro Agencies, you’ll retain the rights to your book of business, and you can take it with you when you leave. This means you’ll have the option of cashing out one day by selling your book, which will help to fund the retirement of your dreams!
