Please Help With My Question

[J Plat]

Hey, I am new to the site because I am planning on becoming an insurance agent. I am still in college and have a lot to learn but i am very passionate about the business.

My friends parents own an insurance agency under their name in the New York area. They make substantial revenue and are very well off. When looking under there information online i saw that the products and services that they sell are only NationWide co.

I was wondering if they were considered captive, Independent, or modified captive agents? I feel like they make to much money to be captive but i am confused on why they only sell one brand of insurance if they are independent?

Thank you,
Joe

 

[arnguy]

You are in college and don't know how to spell their? It's not there!!! BTW the name of the company is spelled Nationwide----one word.

Also, welcome! You have a lot to learn here.

 

[dgoldenz]

Nationwide's life insurance products are not very competitive....

 

[saltydog]

J Plat- welcome to the forum. You should find this very useful AND informative...and at the very least a bit humorous at times.
Your questions are great...one thing you will learn about the Insurance industry is is slow moving, dogmatic and agents are often quite egocentric (they like to nitpick grammar etc) esp when you're young & hungry. Hence arnguy's snippy response! He feels threatened by you
Captive agents can do very well financially...they market/sell based more on product differentiation, service & brand loyalty (their USP) and occasionally have protected territories within the company. Independent agents--who most often sell (if you want to call what they do "sell") based on relationship, price & who's last in. Some good IA's use Risk Management as a USP but 95% don't know how to spell the word(s). Not right or wrong, just a trend you will see. IA's also can make a fantastic living...my suggestion is that if you can start your career with a Direct writer (captive) go for it. Their training is top notch, then go independent or Modified Independent ie. Farmers, Nationwide. What they require as a MIA is first right on their proprietary products, then if client declines they can often go through their Home Office Broker or eventually go outside the company.
Learn all you can about the insurance industry! Study when everyone else is golfing...study after dinner...study before 6:30. Do this for the first 5 years and I guarantee you'll be successful. But, mostly get really good at SALES & Marketing! Those skills will make you a ton more money than just knowing product details and accounting!
Best wishes...

 

[J Plat]

Thank you salty, your information was quite helpful. I believe they are modified independent since they are affiliated only with Nationwide and own THEIR own agency under their own name.

I have already started my studies since i am currently majoring in business economics and have just recently finished reading "So you want to be an insurance agent 2nd edition" by Jeff Hastings, which was a great read.