Everyone knows their local insurance agent that works under the umbrella of a large insurance company. Also known as “captive agents,” the stability they have that is provided by working for large entities driving qualified leads every day is fantastic.
The other kind of insurance agent is independent and owns their own company. Though they don’t actually provide the insurance themselves, they work as an appointed agent for two or three large companies, and work with their clients and the insurance companies to find the best deal.
If you’re a captive agent who wants out, or you work for an independent agent as a producer and want the better pay that comes with having your own business and rights to your book, there’s another option. Insurance agency aggregators offer experienced insurance agents the ability to work at the independent level without the gigantic hurdles that come with getting signed as an appointed agent with big insurance firms.
The Downsides of Being Independent
While being fully independent means that you have full flexibility, it also means that you have to meet the quotas of the insurance companies you sell policies for. Often, these production requirements are onerous and mean you won’t have the ability to work with more than two or three insurance companies at a time.
Because of what an independent agent is, these agents simply can’t produce enough policies to meet the needs of more than two or three companies. This leaves them handcuffed, and in a way, a captive agent in everything but name. The moment they try to sign on with a third, fourth, or fifth company, they get dumped by their first insurer for not reaching the minimums the company demands.
Benefits of Working Under an Aggregator
You can think of an aggregator as a labor union or a buyer’s co-op. By working with an aggregator, you and several other independent agents work under the same umbrella. Combined, independent agents can meet the production quotas of not just two or three insurers, but five, ten, twenty, or more.
Can you imagine having a dozen different companies to send your clients to? Not having to worry about meeting certain numbers to keep your contract alive is an amazing thing.
Every agent has lost one of their clients due to annual increases in policy premiums. For captive agents, there is literally nothing to do but watch the commission check walk out the door. For independent agents, there’s still a chance to place that client with one of the other insurance agencies they represent, but even then, the options are limited. Insurance aggregators don’t have this issue–with ten or twenty companies at their fingertips, agents working through an aggregator basically have superpowers.
Find the Solution With Insurance Pro Agencies
There’s a misconception that working under an aggregator means giving up control. By working with an aggregator like Insurance Pro Agencies, you’ll be able to own your book and take it with you when you leave. Further down the road, when it comes time to cash out and move onto retirement, you’ll be able to sell your book of business for a lump sum, just as a fully independent agent would.
Working with an aggregator also means having the power of a large organization working with you to deal with the insurance carriers so that you can focus on selling your policies to clients. Not having to worry about the backend frees up an independent agent to go out and drive leads rather than having to spend time at a desk emailing carriers to stay on their good side.
These benefits come at a cost, as you must pay the aggregator to run that backend business, but you’d be shocked at the quantity of business you can generate when you can offer your clients policies from so many insurers.
Looking Forward
Whether you’re an independent producer or a captive agent looking to jump ship into warmer waters, contact us today at Insurance Pro Agencies and see what we can do to supercharge your career and take it to the next level by teaching you how to sell insurance independently!
