Independent Insurance Agent Guides

5 Reasons to Become an Independent Insurance Agent

Why become an independent insurance agent? We explore why many people choose careers as independent insurance agents over the alternative.

Being an independent insurance agent is rewarding in so many ways. From satisfying the needs of customers to being your own boss, life as an independent agent has benefits upon benefits. Whether you're a captive agent who is considering going independent or you're currently in another industry and considering making the switch to insurance, there are many reasons to choose to be an independent insurance agent as your next career move.

Here's what to know about the benefits of becoming an independent insurance agent.

Why Become An Insurance Agent?

You spend your time helping people. Being an insurance agent – whether independent or captive – is wonderful for the simple reason that insurance agents help people protect their property and the things most important to them. Insurance agents sell the products that save the day when disaster happens.

You get to talk to people. Insurance agents spend much time working with people and having one-on-one conversations with clients. Insurance agents sell products, so they're natural cheerleaders who can help clients see the many reasons why their products are worth purchasing. Insurance agents are also logical thinkers who can help customers assess insurance products and make informed decisions.

Why Become an Independent Insurance Agent?

Unlike captive insurance agents, independent insurance agents are not obligated to a specific insurance carrier. Independent insurance agents sell products from many different types of carriers. There are many benefits to becoming this type of insurance agent.

1. Increased Access to a Variety of Products

Captive insurance agents sell a very limited number of products and have no flexibility to sell products from other carriers. If the products sold by their insurance carrier don't meet their client's needs, captive insurance agents have no choice but to sell those products anyway. Independent insurance agents sell a wider variety of insurance products and have more ability to sell products that meet the very specific needs of their clients. They go home at the end of the day knowing they served their clients to the best of their ability.

2. You'll Be Your Own Boss, Own Your Own Business

Independent insurance agents are their own bosses, running their own businesses. They get to set their own hours, decide how they will communicate with their clients, how they will market their products, and more. In other words, independent insurance agents can control their professional destinies.

3. Higher Commissions, Higher Earning Potential

Independent insurance agents tend to make 10% to 15% commissions on the products they sell. Compared to the 5% to 10% commissions earned by captive insurance agents, this can make a big difference in the amount an independent insurance agent earns.

Additionally, as an added reward, renewal commissions are higher for independent agents than captive agents.

4. No Production Requirements

Independent insurance agents set their own goals but are not required to reach goals set for them by any other entities.

Contrarily, captive agents have production requirements set by their insurance carriers. Agents that fail to meet their goals may face consequences or miss out on bonuses. They may also feel pressure to perform, which could result in decisions that are not in the best interests of their clients.

5. Control Over Succession

Independent insurance agents control who takes over their business when it's time to retire. If they want to perpetuate their business to their relative or a colleague, they can. For some people, this is a big benefit, especially if they've spent a lifetime building up a business that they'd like to see continue on.

How to Make the Most of Your Insurance Business

As an insurance agent, you play a key role in your community by helping clients protect themselves from potential financial ruin. When the worst happens, you're there to help. In this way, being an insurance agent can be a little bit like being a counselor, a friend, and a superhero, all at once.

This is even more true when you're an independent insurance agent selling a range of products that meet the needs of your clients.