How an Independent Insurance Agency Works
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- เผยแพร่เมื่อ 3 มิ.ย. 2024
- Independent insurance agents are one of the 3 avenues to getting home, auto, and business insurance. But the differences can be hard to perceive. This video breaks down your options.
Here are some highlights:
The 3 access points to home, auto, and business insurance:
1. Online/800 Number
Go out and get your own insurance policies using a web portal or calling a hotline
2. Captive Agent
A local branch of a large insurance company. The term “captive” means the local representative works for the company.
3. Independent Agent
A small business that provides access to multiple insurance companies and advice about which company and coverage is best for you.
Pros & Cons of Each:
SPEED:
Generally, the fastest way to get an insurance quote is through direct access to an online company. Their systems are automated and can give you a quote immediately. No advice about how good your policy is but fast.
LOCAL:
Here both Captive and Independent Agents should have you covered. You can walk into their office, meet face to face, and talk through your insurance options.
QUALITY:
When it comes to the best companies, high quality coverage, and well-rounded advice, independent agents have every motivation to be the best option. They aren’t tied to one company so their advice is much less biased. They work with companies that focus on quality rather than blasting the airways with a billion ads.
PRICE:
It’s important to note that no company or insurance agent can ever claim to have the best price. That’s simply because price is constantly changing. When you’re looking for insurance, it’s a single moment in time. The company that’s the best right then may not be the best in a year.
Having said that, Independent agents have a huge advantage on price for two reason:
1. There is price competition inside the agency
Independent agencies work with multiple companies. So the companies know that they have to bring their best pricing every year to stay relevant. If they can’t, the agency can just move on.
2. Independent agents see the ebb and flow of price
Captive agents see one company all day long. This is the only company they can offer. Independents are motivated to be watching and connect with the companies that are most competitive.
So, What’s an Independent Insurance Agency:
• Access to multiple exclusive insurance companies
• Works for you not the company
• Is motivated by quality and good advice
• Can usually find the best price and coverage
• Helps during claims
I'm in the process of obtaining my P&C license and have been watching several different videos pertaining to Captive vs Independent. By far this was the best video I have watched. It's very informative and explained in a way that made it very easy to understand. Thanks
YAY! Best of luck on the exam!
Subscribed! This is an honest non-salesy video that was very comprehensive in nature. I look forward to watching the auto insurance videos!
Awesome! Thanks Eric. We look forward to hearing what you think of them. Let us know what other topics we should address.
Wow! Beautifully explained. Thanks for this amazing video.
This guy is an incredible teacher! Usually I have questions that go unanswered even after watching other videos but after watching this, I had ALL my questions answered. You have a new subscriber!
Thanks Trevin!! Let us know what else Jeremy can explain for ya.
Thank you very much, I've learned a lot here, especially from your responses to questions that people have asked in the comments section.
So glad this video and the comments were helpful!!
Thank you for the free information.
Very informative....Thank You!!!
Informative Video on how independent as well as captive agents work.Thanks for sharing the difference between captive and independent agents.
Glad it was helpful!
This was a very good presentation!
I’mMary Bass, glad it was helpful!
That's fantastic. Thank you.
Excellent video Jeremy. Great education on the pros and cons of independents and captives. Keep up the good work
Thanks Eric, Really appreciate it!
Hi Jeremy ,
Will you cover Commercial auto, and property insurance as well please. I would like to learn more about auto, trucking business and medical practices commercial insurance etc..
Thank you in advance
Bijan
This video is very insightful.
Tina LovemeKillmenot, thanks. Glad it was helpful!
This video really clarified what type of agency i want to pursue now. Thank!
hello there , are you an independent insurance agent?
@@jhanentanedo6217 I am.
@@Clank_TTV where r u located ?
You are awesome. I will be subscribing to your channel
Aww, thanks! Glad we can help.
very good, thank you
Awesome video!
Glad it was helpful!
Good-eye opening video.
Glad it was helpful. Eye opening in a good way?
Great to know.
thank you
good video
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Also use independent insurance agents only because of competition and quality , value , price , compaire , advice , advice in claims in insurance .
Great video - thank you! Can you explain the difference between an FMO and an agency? From what I'm reading it seems like an FMO does the same exact thing as an agency i.e. get contracts, supports agents with back office tasks, provides training, etc.
Thank you very much, I need an independent agency to work with.
Sher Sher, do a google search for “independent insurance agent [your town]”. Then look at reviews and pick the agency that seems the best.
@@ShineInsurance thank you
Sher Sher, you should check out BriteBee.com and see if there is a local agent in your area!
How do you work with the other’s compan’s?
THANK YOU SO MUCH! XOXOXO
Absolutely!
Good job
Thanks James! Glad it was helpful.
Very good
Thanks! Glad it was helpful.
Hey thanks for the great info! I was wondering how a new independent agent collects different insurance products they can sell? Where do they search for these insurance products?
sai karthik, there are lots of insurance companies that work with independent agents. You have to show them what you can do though. Start with some that are easy to get like Progressive, Allstate, MetLife. Then prove yourself and work towards relationships with better companies. The best are all regional mutual companies.
You can try using us as a commercial insurance wholesaler. We are appointed with dozens of great carriers.
HELLO THERE ,
good
How do you work with multiple agencies when independent
Heyy thanks for the information it was very useful and I am doing HLLQP can I be a independent agent??
Great video! Any tips on places to take a course online? A lot of them look pretty sketchy. Thanks for the help!
Hi Amie, do you mean a course that trains you for the insurance licensing exam? Tell us a little more about what you're looking for and we'll offer some direction.
Yes! Thanks for asking for clarification. Yes, I would like to get my license and I am looking into courses. I am at the beginning / research stage. I am located in California and looking into online pre licensing courses.
We agree that the online avenue doesn't offer great options. Part of the problem is that insurance is super state based so it's hard to teach at the national level. We send all of our new agents to a pre-licensing school in person. We've found that sets them up best for success. You might check out what options there are in CA. It's usually worth the extra money.
Great! I'll change my search terms and try that method. That does sound like it lends itself to be more successful long term. Great advise.
We have tons of previously recorded webinars on our channel for commercial insurance!
Interesting viewing. Do you disclose what your commission is from various Companies? Personally I would like to understand the independent agents incentives throughout the process.
Great question. It's fair to assume that the independent agency gets 10-13% of the premium for any given policy. There are different deals with different companies for different types of policies but that's the average. What other questions do you have?
Shine Insurance hey i have a question for u
Allstate is also for independent agencies
nice video
Glad it was helpful!
House insurance buy H O5 insurance policey 1st replacement cost must , make a move of your home inside and out side and keep in bank locker .
what kind of software an independent agent will be using to get quote and setup ? software for every insurance company they work for or the use only one for all ? thanks
It really depends. All of the companies have websites so we definitely use theirs. Most agencies have a management system or CRM. So we can enter client information once, send it to all of our companies, and get a quote back. There are a lot of exceptions though. Agents enter the same information 5 times way more often than we'd like.
Hope that answers your question.
Is it hard to get a job as an independent insurance agent?
Great information! For anyone looking for a commercial wholesaler, check us out. You don't have to be appointed to receive quotes.
Good
Thanks!
Sir kindly Tell me does Pakistan has Independent Insurance Agent ?
nice
Thanks! Glad it was helpful
What about when independent agencies charge a separate $55 'Agency' or 'Broker' fee in addition to already being paid 10% to 13% of the policy premium...isn't this double-dipping? 🤔
What companies are easier to get contracts with if you are new? I'm thinking of going into this to help the many people in my community. But I have no idea which way to go about starting. could you point me to the right directions?
Getting started from scratch can be pretty hard. Try looking into aggregators. If you can get in with one of these you'll get access to a lot of companies. Iroquois Insurance is one aggregator you can try. The easier company to get appointed with is Progressive. Otherwise, you may consider working for an independent agency first and then going out on your own.
We are a commercial wholesaler licensed in 14 states. If you're an independent agent, we can quote for you without having you be appointed.
hELLO. THERE ARE YOU AN INDEPENDENT INSURANCE AGENT ?
Where can you easily find resources for independent agents to find these quality policies for their clients??
Hi Lysandra Lara, are you already an independent agent and you're looking for better companies or are you wanting to get started? Access to quality companies is about relationships and showing that you're successful with your current companies. Many new agents start with one company that offers a lower threshold for entry. Nationwide is an example. They build from there. Other agencies start by joining an "aggregator". The Iroquois Group is a solid example. The aggregator offers access to multiple companies. Let us know if this helps.
I am already licensed and worked for state farm for about 6 months but no longer want to work for a captive company. I'm currently trying to find a company to help me grow as an independent agent. I seen MMA insurance and SIAA are in the field I'm interested in but no one has reached back out yet. What would you suggest?
Two thoughts:
1. Definitely keep reaching out to companies. There have got to be a few that see the potential in working with you.
2. Make sure you understand your State Farm contract particularly as it pertains to the "non-compete" clause. You make have agree not to sell insurance for anyone else within 50 miles of your current location. That would be good to know before telling State Farm that you're leaving.
I'm no longer with state farm. I'm trying to find companies that can help with my growth.
If you haven't had any luck finding a good company give me a call. I am part of a winning team. We are a family and there is constant support. 770-233-7269
whats a typical % that independent agents make on sales and renewals?
It varies depending on what the product is. Car insurance pays the least, ten percent roughly
Robert C., anywhere from 9% to 20%. Depends on a bunch of things.
Hay quá
what do you think of clusters like SIAA?
saurabh Bhatt , clusters are super helpful for small or start up agencies. There are a ton of large agencies that successfully connect with clusters as well. The key is to TRULY understand the contract and what it will mean for your agency 1, 3, 5, 10 years from now.
For example, some clusters say that THEY hold the company contracts. Others say that YOU hold the company contracts. That can be huge if you ever want to leave the cluster.
Clusters can be great. Just be smart about it and get your favorite lawyer involved in the negotiations.
Shine Insurance thanks for the help I really do need it because it’s really hard to understand the differences and starting off new to the insurance thing also advice from experts like you are priceless.
We're happy to help!
Shine Insurance if you ever have time to talk on the phone I would like to see your take on some stuff.
what are the requirements for starting the Insurance company, not the agency, the company it self??
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I am not aware of a captive carrier that pays a salary to agents, can you let me know which?
Krystell Theisen Escobar, we aren’t captives but pretty sure all captives offer the security of a basic salary. That’s why folks work for them and don’t go independent like us.
Shine Insurance I believe you are misinformed.
@@krystelltheisenescobar955 Ok, so maybe the framing of what we're saying is off. Many captive companies treat agents as 1099 Contractors. So the structure of pay isn't a W2 employee and therefore, not a salary. But captive companies certainly provide financial support as a base that looks very similar to a salary. They are just avoiding the tax consequences of a traditional employee.
Most Captive Agents are Commission only. There isn't a base salary. They are Independent Contractors.
I have no experiance but would like to start my own office... please help
juice, best advice is to work for an independent agent for a bit before starting your own gig. Getting companies to connect with you is one of the hardest parts. A few years in the industry and you’ll get to know some of them.
@@ShineInsurance I already own a business and have no extra time but my brother has about 20 years in the business... thanks for your reply
Which insurance carriers are best for Agents for P & C
Hey Charlie, tell us more. Do you want to become an insurance agent? Are you a captive agent considering a change to independent? Happy to help just need a little more info.
I am licensed in TN, AL, LA, NC, SC & TX for 10 years. I am looking for very good P&C carriers because I want to focus more P&C and less on Health & Life. I am independent and have only Progressive for P&C and want to add 2 more good carriers.
Hey Charlie, depends a lot on your state but if you want to offer property & casualty insurance in all of those states you'll likely need national insurance companies as opposed to regional ones.
Our best advice for starting would be to contact companies you currently work with for Life & Health who also offer P&C. See if you can add a P&C appointment. The relationship is there already so it may be easier to get started.
If that isn't an option, try a cluster provider like Iroquois Group www.iroquoisgroup.com/. They offer access to lots of insurance companies with production expectations that better fit small agencies. Best of luck.
THANK YOU VERY MUCH
Of course!
Interesting icon for "captive". Next video.
Examinations impacting micro-captive insurance transactions of several thousand taxpayers will be opened by these teams in the coming months. Potential civil outcomes can include full disallowance of claimed captive insurance deductions, inclusion of income by the captive entity and imposition of all applicable penalties.
The IRS reminds taxpayers and advisors that disclosure of participation in micro-captive insurance transactions is required with the IRS Office of Tax Shelter Analysis under Notice 2016-66. Failure to properly disclose can result in significant civil penalties. Taxpayers involved in these abusive transactions should immediately consult with independent, competent tax advisors on the proper treatment for past and future tax years to consider best available options.
Google Lance Wallach and whoever advises you, Who do you Believe?
We believe in Santa Claus & Buddy the Elf!!