Get Access to More Markets and Unique Products Retain Your Clients and Better Take Care of Their Needs
to help get you started as either an Independent Insurance Agent or Agency. There are several insurance agent groups in all areas of the country, some who operate locally only, others in a
The reason many insurance agents, including those that are captive to one company, want to be an Independent Insurance Agent is the variety and diversity of accounts they will be able to sell and place with a selection of different companies. Independent agents are not bound by one company with one pricing and one set of underwriting rules. If one company takes a substantial rate increase, then it is possible for another company you represent to have better rates and this will allow you, the agent, an opportunity to save the account. This is the unique opportunity and competitive advantage an Independent Insurance Agent has over working for a captive insurance company. The challenge, as a newly licensed insurance agent with little or no insurance experience, is getting larger and preferred insurance companies to consider your application for appointment. It can be done with a good marketing plan and a willingness to prove your ability to sell policies at the expected level of each insurance company you represent. An agent with experience, either from a captive company or from another independent agency starting their new agency, will likely have a better chance to add more companies. In either case, be ready for each company to ask for a large premium commitment in the first year and beyond. It is not wise to get more preferred insurance company appointments than you are capable of meeting or exceeding the production requirements. As an alternative, insurance companies may suggest that you consider joining an agent group
smaller state territory and those who have a national presence. A group will usually offer you access to more companies for writing business almost as soon as when you join, saving a tremendous amount of start-up
Preferred Insurance Agent
time. The other benefit is the written premium requirements likely substantially lower than what would be offered to you as a standalone insurance agency. CAUTION: If you choose to consider joining an agent group, be sure to evaluate each one on what benefits are offered to you. Some groups only provide markets with no support, others will tell you that you are an independent agent, but the group retains ownership of the business you write. Some will say that you own your business 100% but will make it very difficult to move the business if you decide to leave the group. Other groups will offer benefits, supplemental compensation, education, and training as part of their membership to help you succeed. Based upon your knowledge level of property/liability insurance, the group that will suit your needs will vary. Take time to evaluate the groups of interest to you. All require a contract to sign. Review the contracts carefully and even have an attorney review multiple contracts to see what best meets your needs.
Steps to Opening an Independent Insurance Agency Successfully
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