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New Insurance Agents 101 – Captive Carriers

By September 9, 2022November 21st, 2023No Comments

New Insurance Agent 101- Captive Carriers 

We will be writing a series of blogs in the months to come about the nuances of being a new insurance agent.  This month we want to talk about captive companies.  Captive or Exclusive companies are the big brand companies in the insurance space.  If you are new to the insurance industry and are thinking about owning your agency one day, there are some things to keep in mind.  Captive insurance carriers provide great foundations for newly licensed agents.  They can help you with proven methods, processes, marketing tactics, etc. 

Although you can get great training and marketing tips from captive companies, you are limited to sell only one carrier.  When a prospect contacts you for a quote, you don’t have many options to sell.  Actually, you only have one!  A way to reduce the quoted premium is to reduce coverage or increase deductibles – which may not be best the best thing for the client.  As a captive, you work for the carrier, not necessarily the client.  What if you made the phone ring with your unique marketing campaigns, but your carrier cannot offer a good rate for the risk?  Then you may find yourself very busy—but not selling much!  It is great to have a good marketing plan; but if you are unable to sell your product, you might become frustrated over time.   

After time spent building your book or agency, one of the best things you can do to grow your business is become an Independent Agent.  As an Independent Agent, you have more than one company quote to offer with the necessary coverages tailored to each client.  You also work for the client, and you work for yourself; not one insurance company.  The sales team at Connect would be happy to talk with you to assess where you are in your career now and where you want to be.  We love to help people to do what is best for them, even if it means you do not sign up with our network!  If you want to grow your business and would like to have more company options for your clients, we would be happy to help answer your questions.  One insurance company does not fit all, so give Connect a call!