what is the difference betweenbeing a captive agent and an independent agent?
Total Comments: 27
Posted: Sun Sep 14, 2008 01:03 am Post Subject:
The only benefit I could think of for going captive is that you can get start up income. That doesn't exist in the independent world. I would not want to be a captive agent either, no offense to those who are captive. I got in to insurance because I grew tired of the companies for which I worked owning all the revenue from my business. Now I own it.
Posted: Sun Sep 14, 2008 03:41 am Post Subject:
Training and start up income are very important. I have a lot more respect for the companies I used to work for now that I have to proved both for my son.
However, once you have the training and have saved enough money, working as an independent agent should be seriously considered.
Posted: Sun Sep 14, 2008 05:48 am Post Subject:
One vital factor that you'd need to consider for setting up an independent business is the right kinda capital flow. Remember you'd be a fresher amidst a lot of competitors in the market..so you'd need to have a stabilized funding source in order to meet the unforeseen challenges ahead. Also, try & maintain a good relationship with your old colleagues (while you'd been a captive agent). ArindamSenIndies
Posted: Sun Sep 14, 2008 06:01 am Post Subject:
My friend, it is truly important that you get along a good market survey that extracts the needs of people reigning high in the industry today. But I'd also suggest that you try & get a good survey of the current availability trends with your fellow competitors before you invest on it!
Remember that the Global insurance industry is dynamic & a lot of customized policy versions get introduced in the market every now & then!
Regards, Evan
Posted: Sun Sep 14, 2008 06:16 am Post Subject:
Yeah..I believe once you know the market demand as well as the new packages available...you'd be able to compare the pricing & the benefits offered through different policies aimed at different economic segments. Then, it would be comparatively easier for you to pick your own areas of operation. All the best! ArindamSenIndies
Posted: Wed Nov 19, 2008 09:38 pm Post Subject: can you be both?
is it possible to to be an independent agent(self employeed) and act as a captive by only selling for one company?
Posted: Thu Nov 20, 2008 01:36 am Post Subject:
It would technically be possible, but there is really no reason why you would do that. You would want to sell for multiple companies to be more competitive. The only reason captive agents sell for just one company is if they have to, and they get support (monetary, marketing) for that loyalty.
Posted: Fri Nov 21, 2008 03:46 am Post Subject:
Captive Agents versus Non-Captive Agents: Finding Your Niche
In the world of insurance professionals, there are generally two kinds of agents: captive agents and non-captive, or independent agents.
To help you discover the niche that's best for you, we at InsureMe have investigated the ins and outs of both captive and non-captive agents, weighing the pros and cons so you can determine which area is right for you.
Captive Agents
By definition, captive agents work exclusively for one insurance carrier and are obliged to give business only to that company. While some captive agents belong to affiliated groups of their parent company, the captive agent's priority is to develop business for the parent company above all others.
In return, the insurer usually provides its captive agents with an allowance for office expenses and benefits such as pensions, life and health insurance, continued insurance training and credit union membership. And, while maintaining an estimated 5,000 captive agents worldwide, the captive agent population has reportedly been on the decline.
According to the U.S. Department of Labor, many insurance carriers are trying to contain business costs by shedding their captive agents and relying more on independent agents or direct marketing through the mail, by phone and on the Internet.
Despite the decline, many captive agent groups maintain that captive insurers are the simplest and purest forms of agencies, which will enjoy continued success by offering a wide variety of coverages—greater than the coverages available through independent agents and brokers, leading to longevity in an array of markets.
Is becoming a captive insurance agent right for you? Take a look at the benefits and challenges to find out.
Benefits of captive agents:
• Starting resources often provided by parent company
• Primarily salary-based
• Direct access to the reinsurance market
• Access to a wider assortment of employee benefits
Challenges of captive agents:
• Parent company can prohibit cross-selling
• Parent company can discontinue selling certain lines if they view it as unprofitable—resulting in loss of clientele
• Inability to refer customers to whom you cannot sell a policy
• Parent companies often push certain policies over others and require agents to meet strict quotas
Non-Captive Agents
In direct opposition to captive agents, non-captive, or independent agents, represent multiple insurance companies and work on behalf of the client to find them a policy. Non-captive agents receive the majority of their earnings through the commission of policies sold, although they may also be compensated by their sponsored agencies.
While some non-captive agents are completely independent of a primary company, most non-captive agents report chiefly to one company, while still maintaining more selling freedom than captive agents. How?
As an independent agent of XYZ Company, the agent must report the majority of their business to XYZ. However, if XYZ is unable to sell a policy to a customer for any reason, the non-captive agent can then find the customer a policy through another affiliated insurer. Theoretically, non-captive agents are able to pick and choose the best policy for their clients.
And yet, despite the non-captive's flexibility, the road to success is not an easy one. Often times, independent agents are responsible for providing their own resources to start their business, and although the agent can work with multiple companies, they may still feel pressure to sell a healthy number of policies from one insurer in particular.
Are you ready to become a non-captive insurance agent? Take a look at the benefits and challenges facing independent agents.
Benefits of non-captive agents:
• Freedom from strict regulations of a parent company
• Freedom to cross-sell into other lines of insurance
• Ability to compare price, product and service amongst a variety of insurers
• Ability to sell a policy through another insurer if a primary insurer cannot write the policy
Challenges of non-captive agents:
• Use of personal resources to start the business
• Profits from sales are usually returned to the business during the first year for advertisements, lead purchases and other resources
• Primarily commission-based
While both captive and non-captive agents enjoy benefits and face challenges, it's up to you to decide which career path you'd like to take.
Posted: Sun Nov 23, 2008 08:38 am Post Subject: captive member
To choose between captive & independent i will vote to be an independant
becoz
you can offer diff categories of products from bunch of insurers & as you are not branding any one company the transparency comes in about the
product,which i think is the most important while buying any insurance product. :roll:
Posted: Sun Nov 23, 2008 10:45 am Post Subject:
the transparency comes in about the
product,which i think is the most important while buying any insurance product.
Posted: Sun Sep 14, 2008 01:03 am Post Subject:
The only benefit I could think of for going captive is that you can get start up income. That doesn't exist in the independent world. I would not want to be a captive agent either, no offense to those who are captive. I got in to insurance because I grew tired of the companies for which I worked owning all the revenue from my business. Now I own it.
Posted: Sun Sep 14, 2008 03:41 am Post Subject:
Training and start up income are very important. I have a lot more respect for the companies I used to work for now that I have to proved both for my son.
However, once you have the training and have saved enough money, working as an independent agent should be seriously considered.
Posted: Sun Sep 14, 2008 05:48 am Post Subject:
One vital factor that you'd need to consider for setting up an independent business is the right kinda capital flow. Remember you'd be a fresher amidst a lot of competitors in the market..so you'd need to have a stabilized funding source in order to meet the unforeseen challenges ahead. Also, try & maintain a good relationship with your old colleagues (while you'd been a captive agent). ArindamSenIndies
Posted: Sun Sep 14, 2008 06:01 am Post Subject:
My friend, it is truly important that you get along a good market survey that extracts the needs of people reigning high in the industry today. But I'd also suggest that you try & get a good survey of the current availability trends with your fellow competitors before you invest on it!
Remember that the Global insurance industry is dynamic & a lot of customized policy versions get introduced in the market every now & then!
Regards, Evan
Posted: Sun Sep 14, 2008 06:16 am Post Subject:
Yeah..I believe once you know the market demand as well as the new packages available...you'd be able to compare the pricing & the benefits offered through different policies aimed at different economic segments. Then, it would be comparatively easier for you to pick your own areas of operation. All the best! ArindamSenIndies
Posted: Wed Nov 19, 2008 09:38 pm Post Subject: can you be both?
is it possible to to be an independent agent(self employeed) and act as a captive by only selling for one company?
Posted: Thu Nov 20, 2008 01:36 am Post Subject:
It would technically be possible, but there is really no reason why you would do that. You would want to sell for multiple companies to be more competitive. The only reason captive agents sell for just one company is if they have to, and they get support (monetary, marketing) for that loyalty.
Posted: Fri Nov 21, 2008 03:46 am Post Subject:
Captive Agents versus Non-Captive Agents: Finding Your Niche
In the world of insurance professionals, there are generally two kinds of agents: captive agents and non-captive, or independent agents.
To help you discover the niche that's best for you, we at InsureMe have investigated the ins and outs of both captive and non-captive agents, weighing the pros and cons so you can determine which area is right for you.
Captive Agents
By definition, captive agents work exclusively for one insurance carrier and are obliged to give business only to that company. While some captive agents belong to affiliated groups of their parent company, the captive agent's priority is to develop business for the parent company above all others.
In return, the insurer usually provides its captive agents with an allowance for office expenses and benefits such as pensions, life and health insurance, continued insurance training and credit union membership. And, while maintaining an estimated 5,000 captive agents worldwide, the captive agent population has reportedly been on the decline.
According to the U.S. Department of Labor, many insurance carriers are trying to contain business costs by shedding their captive agents and relying more on independent agents or direct marketing through the mail, by phone and on the Internet.
Despite the decline, many captive agent groups maintain that captive insurers are the simplest and purest forms of agencies, which will enjoy continued success by offering a wide variety of coverages—greater than the coverages available through independent agents and brokers, leading to longevity in an array of markets.
Is becoming a captive insurance agent right for you? Take a look at the benefits and challenges to find out.
Benefits of captive agents:
• Starting resources often provided by parent company
• Primarily salary-based
• Direct access to the reinsurance market
• Access to a wider assortment of employee benefits
Challenges of captive agents:
• Parent company can prohibit cross-selling
• Parent company can discontinue selling certain lines if they view it as unprofitable—resulting in loss of clientele
• Inability to refer customers to whom you cannot sell a policy
• Parent companies often push certain policies over others and require agents to meet strict quotas
Non-Captive Agents
In direct opposition to captive agents, non-captive, or independent agents, represent multiple insurance companies and work on behalf of the client to find them a policy. Non-captive agents receive the majority of their earnings through the commission of policies sold, although they may also be compensated by their sponsored agencies.
While some non-captive agents are completely independent of a primary company, most non-captive agents report chiefly to one company, while still maintaining more selling freedom than captive agents. How?
As an independent agent of XYZ Company, the agent must report the majority of their business to XYZ. However, if XYZ is unable to sell a policy to a customer for any reason, the non-captive agent can then find the customer a policy through another affiliated insurer. Theoretically, non-captive agents are able to pick and choose the best policy for their clients.
And yet, despite the non-captive's flexibility, the road to success is not an easy one. Often times, independent agents are responsible for providing their own resources to start their business, and although the agent can work with multiple companies, they may still feel pressure to sell a healthy number of policies from one insurer in particular.
Are you ready to become a non-captive insurance agent? Take a look at the benefits and challenges facing independent agents.
Benefits of non-captive agents:
• Freedom from strict regulations of a parent company
• Freedom to cross-sell into other lines of insurance
• Ability to compare price, product and service amongst a variety of insurers
• Ability to sell a policy through another insurer if a primary insurer cannot write the policy
Challenges of non-captive agents:
• Use of personal resources to start the business
• Profits from sales are usually returned to the business during the first year for advertisements, lead purchases and other resources
• Primarily commission-based
While both captive and non-captive agents enjoy benefits and face challenges, it's up to you to decide which career path you'd like to take.
Posted: Sun Nov 23, 2008 08:38 am Post Subject: captive member
To choose between captive & independent i will vote to be an independant
becoz
you can offer diff categories of products from bunch of insurers & as you are not branding any one company the transparency comes in about the
product,which i think is the most important while buying any insurance product. :roll:
Posted: Sun Nov 23, 2008 10:45 am Post Subject:
the transparency comes in about the
Good point Ensureproduct,which i think is the most important while buying any insurance product.
Add your comment