Ready to break free from your parent company? Being an independent agent empowers you to chart the course of your business while having the opportunity to make a positive difference in the lives of your clients. 

Transitioning away from a parent company is not always easy for captive insurance agents — but many independents will tell you it was worth the effort. So are you ready for the challenges ahead? Read on to discover if having an independent agency is right for you.

Being an independent agent has massive advantages

Not being bound to a single insurance company is a major benefit of being an independent agent. The independent agent model gives you more control by giving you the power to make decisions that directly affect how you operate and market your business.

As an independent agent, you provide clients with tailored options for health, car, and life insurance. Not only can you provide superior service, but you also help them save money and balance their budgets.

It’s not a secret that everyone loves customized service! Independent contractors have a distinct advantage over agents working for captive insurance agencies because they have an opportunity to offer personalized options for clients at a competitive price.

The time to start your independent insurance agency is always NOW

Insurance is essential for many people because life will always have risks. This simple truth explains why there have always been — and always will be —opportunities for insurance sales. 

Insurance industry growth proves this fact. According to Deloitte’s 2022 Insurance Industry Outlook, one-third of survey respondents expect 2022 revenues to be “significantly better” due to increased worldwide demand. As a result, independent agency owners can potentially earn up to $180,000 by capturing some of that emerging business.

Do you have what it takes to run your own insurance agency?

Are you a producer at a branded agency with sales experience in property and casualty insurance? Do you have an entrepreneurial spirit with the desire to chart the direction of your career? 

The independent model gives you a path to wealth-building on your own terms. By going independent, you’ll be doing the same work you did for your employer. The main difference is that you’ll be building wealth for yourself instead of someone else. 

The path is not always easy, and there are many challenges that you’ll face along the way. Successful brokers in the field usually have the following characteristics:

You are dedicated to your clients

The most successful independent insurance brokers are client-oriented. As an independent, you have the power to shop around for insurance products at better rates than captive agents. Those competitive rates enable you to provide the best service for your clients while saving them time and money.

You are committed to upgrading your knowledge

Do you enjoy learning new things? The best independent agents maintain their state licensing requirements with continuing education. In addition, successful independents are guaranteed to make tremendous progress when they upgrade their knowledge about new insurance products and learn new marketing strategies through new courses.

Networking comes naturally to you

Joining an independent agents network is critical to your success as an insurance broker. By joining an extensive network, you’ll be able to brainstorm ideas, engage in profit sharing, and have access to many resources that will benefit your business.

You understand the importance of marketing

The best agents engage in precision marketing efforts to attract and retain the most ideal potential clients to their business. As an exclusive agent, you will need to use modern tools like social media and email marketing along with traditional strategies to attract, retain, and gain referrals from your clients.

Fast Track Your Way to Freedom

You already know you’re ready to start your own agency. Let SIAA help you
break free from your captive agency with a proven methodology that fast
tracks you to opportunity, growth, and profitability.

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How to transition to independent insurance sales

Working through an independent agency channel has many advantages as well as risks - and no two paths are the same. Some general steps to getting started include: 

  1. Determine what personal lines and commercial lines of insurance you want to sell
  2. Research state licensing requirements, and if you plan to sell in more than one state, research each state individually
  3. Pass the licensure exam for all insurance products you want to sell
  4. Prepare to invest the financial resources required to start your insurance agency
  5. Create a business plan with defined goals and objectives
  6. Research errors and omissions insurance policies that are best for your agency
  7. Choose the insurance producers you want to be affiliated with and what specific products you want to sell
  8. Recruit other independent insurance agents to join your agency (if applicable)

Create your plan and be flexible in making changes. By understanding the steps required when transitioning to an independent channel, you’ll be ahead of the game because you know what to expect. In addition, you’ll have your objectives in focus as you make progress towards achieving your goals.

Additional questions to ask before making the transition

Starting our own independent agency channel requires a major commitment. Here are some further questions to ask to make sure you’re on the right path:

  • Do you meet all the requirements set by each insurance carrier to represent them?
  • Do you have an adequate book of business with the potential for growth?
  • Do you know how to compete with branded insurance companies? 
  • Do you know how to increase profit margins?
  • Do you know how to boost your marketing budget and online presence?

The path to independence from captive agencies can be complex and challenging to navigate on your own. The good news is that SIAA can give you the support you need to get started in the right direction.

Start a smooth transition on a solid foundation

Download our free comprehensive guide to transitioning from a captive to an independent insurance agent. 

In this ebook, you’ll learn:

  • Techniques on selling insurance as an independent insurance agent
  • The basics of operating an independent agency
  • Traditional and online marketing strategies
  • How running an independent agency impacts your profit margin
  • How to work with independent insurance carriers

And much more! You’re not alone with SIAA — our experts are here to help you every step of the way.

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