Independent or Captive Agent

[clarissac]

Hello!

I am looking at starting my own agency, I am in Florida and have 10 years of experience in the industry.

I'd appreciate feedback from both sides to help me measure out the pros and cons. I am worried about branding for recognition and getting carrier appointments since I am starting at ground zero.

Thanks!

Have you looked at Goosehead? Goosehead Insurance is a new independent agency opportunity disrupting the industry in a HUGE way.

We directly appoint you with a portfolio of A-rated carriers, with no production requirements or quotas. We provide access to our world-class infrastructure and back office, which services 100% of the book of business and maintains a 90% retention rate. Your responsibility would be solely focused on sales and marketing, allowing you to grow a larger book faster.

Key benefits:
-Book ownership with a guaranteed buy-back.
-Direct appointments with top A-Rated insurance carriers.
-Higher commissions.
-NO service work, minimal admin work.
-Comprehensive training and support.
-Customized Salesforce.com technology package.

Please let me know if you’d like to learn more about this unrivaled opportunity.

All the best,

Clarissa D. Cross
214-838-5243

 

[clarissac]

Hello!

I am looking at starting my own agency, I am in Florida and have 10 years of experience in the industry.

I'd appreciate feedback from both sides to help me measure out the pros and cons. I am worried about branding for recognition and getting carrier appointments since I am starting at ground zero.

Thanks!

Have you heard of Goosehead? Goosehead Insurance is a new independent agency opportunity disrupting the industry in a HUGE way.

We directly appoint you with a portfolio of A-rated carriers, with no production requirements or quotas. We provide access to our world-class infrastructure and back office, which services 100% of the book of business and maintains a 90% retention rate. Your responsibility would be solely focused on sales and marketing, allowing you to grow a larger book faster.

Key benefits:
-Book ownership with a guaranteed buy-back.
-Direct appointments with top A-Rated insurance carriers.
-Higher commissions.
-NO service work, minimal admin work.
-Comprehensive training and support.
-Customized Salesforce.com technology package.

Please let me know if you’d like to learn more about this unrivaled opportunity.

All the best,

Clarissa D. Cross
214-838-5243

 

[regularAgent]

Sorry, I think I'm wrong, because you were talking about groups and agencies in P&C Insurance and I was thinking in life insurance.

 

[regularAgent]

Of course, tell some more

 

[achaffee]

I would go independent all the way. The big direct writers such as Statefarm have some decent subsidies when your building your business, strong brand, and some marketing support. However, you only can write risks that meet their appetite.In California, Allstate made all policyholders full pay when the market got hard, Statefarm had seven days binding restriction, and you do not have different markets to serve your clients when the market changes.

 

[insurance1822]

Have you heard of Goosehead? Goosehead Insurance is a new independent agency opportunity disrupting the industry in a HUGE way.

We directly appoint you with a portfolio of A-rated carriers, with no production requirements or quotas. We provide access to our world-class infrastructure and back office, which services 100% of the book of business and maintains a 90% retention rate. Your responsibility would be solely focused on sales and marketing, allowing you to grow a larger book faster.

Key benefits:
-Book ownership with a guaranteed buy-back.
-Direct appointments with top A-Rated insurance carriers.
-Higher commissions.
-NO service work, minimal admin work.
-Comprehensive training and support.
-Customized Salesforce.com technology package.

Please let me know if you’d like to learn more about this unrivaled opportunity.

All the best,

Clarissa D. Cross
214-838-5243

Clarissa, your post intrigues me. I would like to learn more.

 

[walthamny]

Is there an app for this site that can block goosehead insurance postings.

 

[Markthebroker]

It depends a lot on which captive line, and what they offer. I am an independent agent. I started out and worked captive, then went independent and have been for the last 5 years or so, and very happy I did. But I am just an independent agent, not an agency owner.

 

[Warrior]

If you go with an Allstate or State Farm or a Farmers, they will give you a subsidy. But you will have to pay it back if you dont meet your numbers quarterly. These companies are also CAPTIVE not INDEPENDENT. You dont keep your book and if you leave, you cannot solicit your clients for 1-2 years. In some cases, you have to give up your phone number and office if you leave, even though you paid for the office and paid for the phone number.

CAPTIVE is good if you want the training and get experience, but you can find an independent broker who can take you on and train you and help you build your book to take with you to your own agency. A smarter move with no outside cost to you.

BEWARE OF FRANCHISE BROKERAGE HOUSES the will charge a "Membership fee of $2500-$9500 just to join, and charge you monthly for all the sales you do which comes to $500-800 PER MONTH whether you sell anything or not.

Find an Independent agent in your area and see if they will take you on, train you and get you to the point to open your own place.

I wish I started that way. I was a captive and it was awful!

 

[bsdavis]

There are a lot of good points in the above posts, I figure I will toss my 2 cents in.

Having been a captive (my own agency) in the past, and now working for an independent (not my own agency) I can tell you the learning curves are completely different. This is speaking from a multi-line view point.

The captive route has a slightly shallower learning curve and allows you the opportunity for built in mentorship/accountability in district management and company sales goals. It also allows you the ability to get trained as you go because the company will track what you need and when you need it to make sure they (and you) are both complaint and competitive. As mentioned previously the book isn't yours and some of these companies have a pretty draconian non-compete agreement.

The independent route has a sharper learning curve: product knowledge, contracting, how to run a business (let alone an insurance business), and any industry shifts both good and bad. Without the built in accountability of the corporate structure you end up having to get it done yourself. While there are a lot of good mentorship/networking groups out there. Finding the right one that fits your attitude and needs is all on you. The biggest bonus I have seen is the book is yours to shape and mold as you see fit, and you have a greater flexibility to specialize in a particular market rather than the 'fog a mirror' you get when you have your quotas hanging over your head as a captive.

In the end I would say that I greatly benefitted from my multiple years of training as a captive, but am also really looking forward to flexing different muscles and growing as an independent. Either is an 'ok' choice, you just have to make one and do it. Good luck.