According to the Insurance Information Institute, in 2018, the count for independent agencies in US was an estimate of 36500. With this increase in independent agencies, insurance agents may want to ask some questions. Why switch to independent agencies? Unlike carriers, agents affiliated with agencies can offer the best policy to their clients by quoting from several carriers. This is because they have drawn contracts with several insurance companies to represent them. Do you need more reason for you to join an independent agency? Well, then here are 4 reasons for you.
Give bias-free quotes
A captive agent is usually stuck selling insurance policies of the carrier they work for, whether the clients require it or not. However, independent agencies allow agents to use their discretion to provide their clients with quotes without any affiliation to the carriers. Agents in independent agencies analyze the need of their clients and then give them bias-free policy options. Therefore, agents can take up an actual advisory role in suggesting their clients choosing policies from various carriers.
Establish long-term relationship
Due to the choice for agents to quote with several carriers, agents in independent agencies can forge long-term and lasting relationships with clients. This is because they will be able to cater to the clients as their insurance needs change. A client who had bought a homeowner insurance may need auto insurance when they buy a car. Similarly, a client who has personal auto insurance may require commercial auto insurance for his company. The ability of agents of independent agencies to understand the clients can help foster long lasting relationships. Providing quotes according to their changing needs is a value proposition that captive agents cannot offer.
Independent agencies do not compensate agents with a monthly salary as carriers do. Agencies provide agents a commission split which could prove more profitable for high performing agents. While all agencies have different pricing models and split percentages, finding the perfect agency to work is difficult. Independent Agent Magazine states that the bottom line is inextricably tied to how the agency prioritizes new versus renewal business. You can weigh the different commission splits and terms and conditions of various agencies. Then you can pick which one of the insurance agencies you can derive the most.
By now you probably want to join an agency. However, there may be many independent agencies in your locality that are hiring capable agents. These agencies sometimes provide extra services and proprietary software to agents to ease their work. Search online and through other agents and make a list of insurance agencies in your area or state. This way you can find out the all the required information to make your final decision.