Captive Newbie with Yet Another Question

[blaze1x]

The advice I've gotten makes sense, and I'll probably follow up on some of the ideas. But, and this is important, I think the answer to my original question seems to be that the reason why insurance brokerages only offer one product is because they want to make sure that the agents they hire are intimately familiar with the one plan. Is that right? And yes, I understand that the more you offer the better you're able to grow a business, but I'm dealing with a company that doesn't do that and certainly they're in business to make money. So...why deny themselves the opportunity to broaden their client base and make more money?

 

[senior-advisor-indiana]

Why ask why? Maybe your upline gets the biggest override from Assurant.

 

[James]

I've tried to backtrack through older posts and find out the answer to this next question, but no dice. Here's the question:

As a captive agent, I'm only able to offer one product (Assurant). Now I know that I don't work for the insurance company, so what I'm confused about is this: Why not offer the other insurance plans out there like Blue Cross or Aetna or Humana, etc? I know what I'm taught, that the other companies all put out crap insurance and that as soon as there is a better product we'll sell it......

but seriously, why would my brokerage risk losing all that potential money by not offering a cheaper product for the people with shallow pockets?

Thanks

Some companies like NML believe in their product and will only allow you too sell their product. Other companies like NYL will allow you too sell only approved Health carrier and that is it! I'm sure other businesses are similiar in nature. It is called Corporate Structure and obviously you don't have to ask why, their sh't doesn't stink and not to be question. If you don't like it leave, pretty simple.

 

[blaze1x]

Some companies like NML believe in their product and will only allow you too sell their product. Other companies like NYL will allow you too sell only approved Health carrier and that is it! I'm sure other businesses are similiar in nature. It is called Corporate Structure and obviously you don't have to ask why, their sh't doesn't stink and not to be question. If you don't like it leave, pretty simple.

I'm doing well with the captive process and while I think that going solo will increase my commission percentage, I'm really debating whether I'd be interested in selling any other products should I go solo. Again, I don't have a problem with this company. In fact, I have no intention of leaving anytime soon. From a business perspective I just wanted to be able to understand the reasoning. "Only believing in their product," sounds like a good rationale. The whole "corporate structure," as an argument, sounds weak. But enough! I feel like I've gotten my question answered. Thanks for the answers. I'm sure I'll have other questions.

 

[newmindfashion]

Blaze,
Aren't you glad you got that lesson on "Corporate Structure?" And "why ask why?"

Very helpful stuff.

 

[senior-advisor-indiana]

Sometimes it is just that simple.

 

[blaze1x]

Blaze,
Aren't you glad you got that lesson on "Corporate Structure?" And "why ask why?"

Very helpful stuff.

There's a whole lot of ways to say "I'm not sure."

 

[James]

I'm doing well with the captive process and while I think that going solo will increase my commission percentage, I'm really debating whether I'd be interested in selling any other products should I go solo. Again, I don't have a problem with this company. In fact, I have no intention of leaving anytime soon. From a business perspective I just wanted to be able to understand the reasoning. "Only believing in their product," sounds like a good rationale. The whole "corporate structure," as an argument, sounds weak. But enough! I feel like I've gotten my question answered. Thanks for the answers. I'm sure I'll have other questions.

So be it, no problem, go and ask them. So the question to you is what did they say when you went and question this policy? I've work for small and large and either way to ask "why", was basically a stupid thing to do! Yet that was my expierence, maybe you'll have a different outcome. I really don't know who better to ask then the company or agency, yet you came here? How can anyone here possibly know or give anything but a BS answer to the question!

 

[mmb98]

Some companies like NML believe in their product and will only allow you too sell their product. Other companies like NYL will allow you too sell only approved Health carrier and that is it! I'm sure other businesses are similiar in nature. It is called Corporate Structure and obviously you don't have to ask why, their sh't doesn't stink and not to be question. If you don't like it leave, pretty simple.

not completely true. I work with NYL and I am free to write with anybody I want. They place no restriction on who I am appointed or sell with after 3 years (now during your first 3 yrs they do consider you an employee and have marketing arrangements with certain companies. For individual health this is Golden Rule, Assurant (John Alden) and Humana. For life insurance they use BISYS). That's what I like about NYL, a great company, with solid financials and products, but if their products are what is not in the best interest of the client, then I don't have to use them and I can go with any company.

But I don't think that this first year restriction is necessarily a bad thing, especially since they do offer quality companies to write with. I sometimes feel that if agents have too many companies and too many plans they spend most of their time just keeping up with them and not "meeting" with prospects.

 

[senior-advisor-indiana]

It can be overwhelming if you deal with too many companies.