Independent Agent vs Captive

[NHB_MMA]

No fees:

And here's the theory:

*Captive agent: Training on the products and normally you have a manager who you can call at any time for support. They normally give you leads or heavily discount them. Lots of atmosphere which a lot of people need to get off the ground. Contests, bonuses and recogintion for your efforts. Typically from 20% to 50% reduction of commissions of what you could get as an independent.

*Independent Agent: No formal training and no manager. It's you in your office with brochures and underwriting guidelines. Top commissions but you're on your own for a marketing plan. No atmosphere and normally no one to call if you need assistance.

It's pretty much the opinion of most people on this board that as long as the products are solid newbies should start out with a captive company then move to being independent once you're knowledgeable.

John nailed it.

Most anyone will advise you to start captive if you have no industry experience. It's what I've done and I hope I do so well I never leave it, but if not I'll have to ask myself why I didn't last or what I didn't like and if doing things the way some independents do it would make the difference.

 

[NHB_MMA]

Although there are many very legitimate captive agencies you want to watch out for "turn it and burn it" operations. Warning flares should be going off if:

1) It's a group interview
2) The interviewer doesn't grill you on your resume or seem interested in your skills, past job record or what you bring to the table.
3) The entire interview centers around how rich you'll become
4) The "manager" is a 26 year old wearing a JCPenny tie

"Self-employed people have fewer claims." :lol:

 

[Crabcake Johnny]

I also think being an independent doing health insurance is arguably easier then trying to be independent doing life, DI, LTC or other products that take a great deal of marketing effort to land deals.

 

[maxreferrals]

I also think being an independent doing health insurance is arguably easier then trying to be independent doing life, DI, LTC or other products that take a great deal of marketing effort to land deals.

No doubt about that one. Plus you can go broke trying, using all the old-skool methods everyone is out there using. Good point.

 

[L5tc]

My .02

I tried the captive route and couldn't agree more with John. Yes they got me licensed and off the ground but honestly after about 6 months of meetings telling you the more appt's you get the more apps you'll write ( DUH!!!!) the training pretty much ended there. The rest of my training was calling the wholesalers myself and I can do that indie.

The managers, or manager I dealt with could barely run an illustration and no understanding of trusts, estates. etc so all that really matters is the pure retail sale.

The walk of shame is so true and it's bizarre that no one questions it.

So my .02 cents is - if you're motivated you'll do well captive, if you're motived you'll do well indie. If you don't mind being treated ( and some truly don't mind it) like you're 21, and being treated like an employee without a paycheck then stay with the captive system.

John...who is UMG?

 

[L5tc]

The interview

John - I forgot to mention - My interview was EXACTLY that way!!! The interviewer was more of an old hand but the same EXACT thing. If you were exagerating then that's become reality. NEVER looked at the resume - just get some bodies in here, sell your friends and family and goodbye.

 

[stayfit]

Although there are many very legitimate captive agencies you want to watch out for "turn it and burn it" operations. Warning flares should be going off if:

1) It's a group interview
2) The interviewer doesn't grill you on your resume or seem interested in your skills, past job record or what you bring to the table.
3) The entire interview centers around how rich you'll become
4) The "manager" is a 26 year old wearing a JCPenny tie

Ok, So I'm new(6 Months) to Insurance. All 4 above were true, except the 4th, where he's 30, and I know his VERY nice development where he lives. I don't think he knows what JC Penney's is...

You guys are really gonna slam me, but here it goes: I work with United American. How am I doin'? Getting by(no sarcasm), averaging 2-3 apps/wk. Chargebacks kicking my butt. Wondering if I'm doing the right thing. I've seen a lot of people come and go in just 6 months, but know 20% do 80%. If I stay here, and remain in the top 20(please insert humble tone here), will it all eventually pay off in renewals? Or, will I have such a backload of debt to the company, that I can never leave? Above question(s) are meant for UA agents longer than 1 yr with company, and what they recommend.

For those that have never spent more than 6 months with UA, or UGA: I know you don't like these companies. But, if you could tell me (specifically) where I should go, or whether I should try independent, I would appreciate your advice. I know this is a churn and burn agency, but some people do make it, and make it well. Given, right? Ok, consider that by the stroke of not luck, but hard work over 6 months, that I'm still able to support a family. If I can do that, does it mean I can do better things somewhere else? If so, where? I want to know no matter where you are now, where would you go, and what would you do if you could do it all over?

Thanks in Advance!

 

[MHart]

I am a fairly new agent as well I would like to know the answer for suggestions on employment for a captive agency. I am independent but pretty much started that way, I started with NASE for a month passed my test and never turned in my license. I went throug TTAC and that was about it. Is there any reputable captive agencies selling health insurance if there are some in california I would be interested in hearing where? Most captive agencies to my knowledge exist on the P&C or on the life side such as NY Life, AIG, Monumental Life, Bankers Life, Liberty Mutual..etc. Is there a company that is captive that just focuses on health insurance?

 

[J.R.]

But, if you could tell me (specifically) where I should go, or whether I should try independent, I would appreciate your advice.

It sounds like your unsure about what the next step should be to take. What is causing you to rethink your strategy with NAA and consider other alternatives?

If I can do that, does it mean I can do better things somewhere else?

What do you think? Can you do better somewhere else? What "specifically is better? Earning 100,000; 200,000; 500,000 a year? Do you want to work out of your home and not mess with sales meetings and seeing people come and go within your outfit. Can you function 100% w/out daily and/or weekly support from other agents? Do you want to sell life, health, disability insurance, etc. etc.? What are your goals? Once those questions are answered it will make it easier to understand what you want and recommend some possibly solutions.

If so, where? I want to know no matter where you are now, where would you go, and what would you do if you could do it all over?

I would have started out in the same manner I did when I first become licensed. I was able to see the good and the bad about UGA as I stayed with them for about a year. Then I decided to leave because I couldn't force myself to sell those policies any longer. I originally thought about becoming a recruiter and think I would have done very well in that business. Then I went on quite a few interviews and saw the "corporate" world that did not sit well with me at all. Apparently most of the companies who were hiring wanted somebody they could mold (w/out any sales background), and in a nutshell, would be their little bitch. NO THANK YOU!!!!!!!

I originally spoke with John P. upon finding this board and he, along with Scott, played a huge impact in my decision to go independent.

I think life has thrown me quite a few speed-bumps since I started selling insurance back in 2006. I started my agency back in January and have been fighting ever since. One key ingredient I would have liked to have when I started would have been $10,000-$20,000 in expendable income and expenses saved up for 6-9 months. I had 3 months saved up and $0 in marketing when I started. I do not suggest anybody takes the same path I took unless they have no choice.

This forum, along with the support of my loves ones, has kept me going. I might also add I'm a bit stubborn and don't easily give up but that's' another story. Things have a way of working out so I'm sure whatever decision you make will be the right one. Just count on a 6-9 month learning curve starting out and prepare to do A LOT of reading.........

 

[Guest]

Is there a company that is captive that just focuses on health insurance?

Physicians Mutual
http://www.physiciansmutual.com/agents/

I don't know much about them or if they are a 'player' in CA. I spoke to the guy here in Sacramento once and was very impressed with his knowledge and ability. YMMV.

Al