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Types Of Insurance Agents

Types of Insurance Agents

Many people seek the advice of an insurance agent for their insurance needs, and for a good reason: agents can help you navigate the complex world of insurance and find the best bargain. However, did you know that there are various types of insurance agents?

We can think of two types of agents when it comes to the insurance industry. These include captive and independent agents. Below we will discuss more about these agents and which one would be the best for you while you choose become an insurance agent.

Independent Insurance Agents

Independent insurance agents represent a number of different insurance firms, all of which provide a diverse range of coverage options and price ranges. Most agents work for five to six distinct insurance firms on average. You don't have to accept a single quote from a single firm, and you don't have to waste time filling out numerous online forms to compare quotes.

Independent insurance agents can often discover a better bargain for your insurance dollar than you can on your own because of their connections and industry knowledge. Agents are the ones who go shopping. You're the one who saves. They discover the best combination of pricing, coverage, and service for you.

Working as these types of insurance agents comes with many benefits, starting with being your boss. People who have always envisioned working for themselves can pick this career path. However, it's not always glitter and sparkles, and there are some struggles in this career path. But, if you are diligent, you can easily overcome those obstacles and create an excellent career for yourself.

Pros:

  • Customers are happier

One of the best things you can offer your clients is a variety of products from a few different carriers. Everyone who is purchasing a health plan has various desires and requirements. Even spouses might have their health insurance policies. You'll have a better chance of assisting your client in selecting a policy that genuinely works for them if you're not limited to plans from one company.

  • Commissions

Many people become insurance agents for various reasons, one of which is the opportunity to make a lot of money. Given that you'll be working in sales, you'll have a solid motivation to improve your figures – your commissions. While captive agents are paid a salary, they can also earn commission on the sales they make. Independent insurance agents earn their living from the commission they get by selling a policy. Insurance agent commission is usually unrestricted. The better the commission, the more you sell. Companies also provide extra incentives to top-performing agents, such as bonuses and international trips.

  • Flexible Hours

As an independent insurance agent, you have a lot of freedom in terms of how many hours you work. If you need an hour or to relax, you do not have to ask someone superior. Moreover, many clients may only be available in the evenings or on weekends. Depending on when potential clients are accessible, you can adjust your work hours accordingly. According to studies, one of the aspects of young insurance agents' professions that they enjoy the most is their ability to work on their own schedule.

Cons:

  • They Are Super Busy

The administrative load and complexity of handling forms, procedures, and rules in a multi-carrier environment are enormous. With diverse capabilities among carriers, such as agent portals and client portals, client service becomes considerably more difficult.

Captive Insurance Agents

Captive agents work for a single insurance company or a small group of insurance firms, which means they only provide the clients with one quote for an insurance policy. These types of insurance agents work for reputed firms that are very well-known. These giant reputable insurance firms are frequently marketed on television around the world.

Captive agents are frequently obliged only to offer the items of their employer. When no internal solution fulfils a client's expectations, their firm's brokerage capabilities may provide them access to other companies' products. Captive agents, on the other hand, are frequently "encouraged" to market solely the policies of their employer.

Pros:

  • Guidance From Reputed Firms

As a captive agent, you will work for reliable insurance businesses that have been in business for at least a few years. This is a wonderful way to get some experience before you dive in. Larger organizations frequently provide training sessions as well as a wealth of materials to their agents. Unlike independent agents, captive agents are sometimes handed over leads by the firm.

  • Better Experience

Captive agents frequently sell the things that they are given. They aren't always allowed to choose between multiple lines of power. This can be seen as a pro and a con.

Selling only one type of coverage has the advantage of allowing you to gain thorough insight and knowledge of the product. You can expand on it, and with years of experience in the industry, you're likely to be knowledgeable about it.

Cons:

  • Sales quotas

It can be challenging to meet sales goals. Commissions are frequently linked to sales quotas in large organizations. In other words, you'll only get paid if you sell a particular quantity of items. Even though you'll be the one putting forth the most effort, this exchange appears to be fair on paper.

  • Lack of Personal Growth

Even the relationships you form with clients will not be your own. Clients choose captive agents because of the fame of the insurance company they work for. Whatever you do, keep in mind that you are working for the benefit of your parent firm, not for personal gain. If you work as an agency, this reduces the resale value of your business.

Conclusion


There isn’t one best career option as an insurance agent. As a result, we have mentioned the pros and cons of both types of insurance agents so that you can choose prudently. It’s up to your personal preferences whether you want to work as an independent or captive agent. Now that you are through with the types of insurance agents, your next step is to know how to become an insurance agent which we have covered in another blog.

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