When considering opening an insurance brokerage, you’ll have two options: independent or captive.
Both options can be very profitable and each comes with their own set of pros and cons.
As the owner of an insurance agency, your job is to guide customers through the buying process and assist them in determining what policy most closely fits their needs.
In addition to the initial sale of an insurance policy, brokers regularly meet with clients to ensure the policy is still the best fit.
If you decide to be a captive agent, be sure you fully understand the terms of the contract, that you’re familiar with the carrier’s mission, and that you stand by their line of products.
While it’s often a profitable career choice, most insurance agency owners don’t enter it solely for the money. Insurance is frustrating and confusing to most consumers, yet it’s a “necessary evil.” A captive agency is wonderful for someone who is genuinely in it to help their clients long-term.
It is a more fast-paced environment and no two days are alike.
Regardless of which path you decide to take, you should have several years of insurance experience under your belt.
Policies vary from company to company, so it’s your job to explain any differences their new policy might have over their current one.
Many agents prefer writing and servicing one line of business over another.