might have been a more accurate video 10 years ago but "captive companies" aren't that captive any more. Companies Like Farmers was used as an example as captive but left out that they have their brokerage Kraft Lake which always Farmers agents to write business with other carries such as progressive, Safeco, etc. even if the only reason is price. Some times Captive companies are the best option for customers, right now in my own state companies like State Farm are by far the cheapest for most people, not that premium is everything but it was another point made. No offense to any independents or to Trailstone as there are certainly pros of being independent I wouldn't deny that. I just think many of the arguments of why captive is so bad simply isn't true anymore.. At least not for all carriers some still are pretty bad.
Luke_816, Thanks for your insights! The insurance landscape has changed, with companies like Farmers offering more flexibility to agents, this can provide some benefits to customers by providing options from multiple carriers. Also, you're spot on about Farmers and Kraft Lake offering additional choices beyond Farmers. Unfortunately, I have spoken with too many agents at Farmers, as well as other captives, and they will not offer an insurance company other than their captive brand because those commissions are significantly reduced. Here at Trailstone, our commission structures are fairly uniform and we are not deciding what to offer our clients based on a commission structure, we will offer what is best for the client. Your perspective on captive versus independent models adds depth to this discussion, thanks for sharing! ~ Tia
might have been a more accurate video 10 years ago but "captive companies" aren't that captive any more. Companies Like Farmers was used as an example as captive but left out that they have their brokerage Kraft Lake which always Farmers agents to write business with other carries such as progressive, Safeco, etc. even if the only reason is price. Some times Captive companies are the best option for customers, right now in my own state companies like State Farm are by far the cheapest for most people, not that premium is everything but it was another point made. No offense to any independents or to Trailstone as there are certainly pros of being independent I wouldn't deny that. I just think many of the arguments of why captive is so bad simply isn't true anymore.. At least not for all carriers some still are pretty bad.
Luke_816, Thanks for your insights! The insurance landscape has changed, with companies like Farmers offering more flexibility to agents, this can provide some benefits to customers by providing options from multiple carriers.
Also, you're spot on about Farmers and Kraft Lake offering additional choices beyond Farmers. Unfortunately, I have spoken with too many agents at Farmers, as well as other captives, and they will not offer an insurance company other than their captive brand because those commissions are significantly reduced. Here at Trailstone, our commission structures are fairly uniform and we are not deciding what to offer our clients based on a commission structure, we will offer what is best for the client.
Your perspective on captive versus independent models adds depth to this discussion, thanks for sharing! ~ Tia