Currently Captive - Tips for Becoming Independent

mikemix

New Member
7
Is there a credible resource for getting some info on starting an independent agency?

Does the current experience with the captive help? What is the process for getting started?what software is used? I know insurance just now how the independent world works..

Thanks!!!
 
What lines of insurance? How long have you been captive? What type of marketing do you plan on doing?
 
What lines of insurance? How long have you been captive? What type of marketing do you plan on doing?

P&c, life.. Captive for almost 10 yrs.. Very successful growth.
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Btw.. Someone sent me. Pm, but the foru. Wouldn't let me repl because I had less than 20 posts.. Go figure...
 
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I started captive then went independent. I am going to assume once you leave, you don't get to keep any of your renewals. Right or wrong, your real renewals are the experience you learned under that captive agency. They taught you how to sell, the basics of their product (but not the competition), how to schedule life around your work, how to prospect, and how to sell to those prospects and then support that sale. That is a lifetime payment for you that will earn dividends as you continue working independently.

What you lose by becoming independent: no one is going to stick a boot up your butt to get you to work anymore, so if you needed someone to do that, stay captive (unfortunately, almost everyone says they really didn't need that until they lose it; most people are a poor judge of their own work habits at the start). You lose the security of being backed by the strength and support of one omniscient insurance company, you lose their systems (although many can be adapted to your own use), you lose their training - freely given, and you typically lose the clients you've built a relationship with and have to start from scratch (check for a non-compete).

What you gain: freedom to not answer to anyone but yourself and your family, ability to diversify your portfolio to whatever you wish, you get to sell products that are more competitive, and you get to pick which type of people you sell it to.

In some ways, you start over, because you have to learn new products, new underwriting (when I first left my captive company, every life insurance I wrote the first month got rejected because I was so unfamiliar with other companies UW methods), new ways to prospect, and new support systems. In other ways, you aren't new, because you already know how to sell. The trade of selling isn't different from one company to another. Just honestly prove to the prospect you can give the prospect the best solutions to the problems they have, and you'll have yourself a nice career.

Hope that helps.
 
Hi, I'm in California. Eharriett, thank you for the info.

I found some California specific resources on the web that were really helpful. What would be a starting point to obtaining company appointments? Any specific companies that I should look to first? What about the middle man companies that I am hearing about? How much does the fact that I have nearly 10 yr of experience as a captive help my case? And have had excellent production in p&c ? the companies ask these things?? Thanks much!!!!!
 
We've got a mix of direct-to-company appointments and appointments through front offices. Our primary product is Medicare-related insurance, so we don't do as much with LI. Advice is similar, though. However, I know nothing about the P&C business, so I can't speak for it.

The "middle man" or independent marketing office is "supposed" to make you life easier. They're supposed to act like the captive company did for you in may ways. They can help contact the company if the company is difficult to work with, help with underwriting, provide marketing assistance, and sometimes even help you with some agency systems and training.

That being said, the IMO can also be the biggest pain in your butt and the biggest hindrance to you making sales if they aren't committed to working with you. No matter what they're offering, if they aren't going to be there when you need them, then take a pass on them.

My favorite medicare supplement/final expense company in the entire industry has its own internal marketing company that is so first class, they should be an example to every IMO and insurance company throughout the country, in my opinion. I moved my parents supplements over to them, and when both my partner and myself had problems with our life insurances, we replaced them with that company's product as well. So sometimes the companies themselves provide better service also (but this seems to be more rare than a lot of the IMO's).

As far as production and experience, again I can't speak for the P&C side, but on the life insurance side, I sure don't have very good production, and I've never had problems getting appointed. So I'm not sure how much it matters. It is obviously taken into account since so many companies ask about it, but I've got no experience on what is looked for there.

As a final note, this isn't a popular opinion on these boards, unfortunately, but it is mine. Consider joining an agents' organization. I know P&C has one that is almost mandatory you join, but also consider being a part of NAIFA, which will give you a lot of help as an independent agent on the life end of things. I know when I started out, NAIFA was there for me, and gave me a lot of help on a LOCAL level that I did not know how to get. They're partially responsible for helping me find local resources I needed to stay in business that first difficult year.
 
I started captive then went independent. I am going to assume once you leave, you don't get to keep any of your renewals. Right or wrong, your real renewals are the experience you learned under that captive agency. They taught you how to sell, the basics of their product (but not the competition), how to schedule life around your work, how to prospect, and how to sell to those prospects and then support that sale. That is a lifetime payment for you that will earn dividends as you continue working independently.

What you lose by becoming independent: no one is going to stick a boot up your butt to get you to work anymore, so if you needed someone to do that, stay captive (unfortunately, almost everyone says they really didn't need that until they lose it; most people are a poor judge of their own work habits at the start). You lose the security of being backed by the strength and support of one omniscient insurance company, you lose their systems (although many can be adapted to your own use), you lose their training - freely given, and you typically lose the clients you've built a relationship with and have to start from scratch (check for a non-compete).

What you gain: freedom to not answer to anyone but yourself and your family, ability to diversify your portfolio to whatever you wish, you get to sell products that are more competitive, and you get to pick which type of people you sell it to.

In some ways, you start over, because you have to learn new products, new underwriting (when I first left my captive company, every life insurance I wrote the first month got rejected because I was so unfamiliar with other companies UW methods), new ways to prospect, and new support systems. In other ways, you aren't new, because you already know how to sell. The trade of selling isn't different from one company to another. Just honestly prove to the prospect you can give the prospect the best solutions to the problems they have, and you'll have yourself a nice career.

Hope that helps.

Very good post.

I made the same transition from a large captive mutual life insurer several years ago. All the pro's and con's listed above are dead on.

I would add these to the list:
Pro's to being independent:
  • making insurers compete for my clients business, instead of trying to "sell a rated case for the carrier".
  • ability to be compensated based upon my production level and not some set company comp rate that applies to everyone.
  • pick the office location and type of space I want.
  • ability to say go-to-hell if a carrier makes systems,process, or product changes that are ridiculous and not in my clients best interest.
 
Pro's to being independent:
  • making insurers compete for my clients business, instead of trying to "sell a rated case for the carrier".
  • ability to be compensated based upon my production level and not some set company comp rate that applies to everyone.
  • pick the office location and type of space I want.
  • ability to say go-to-hell if a carrier makes systems,process, or product changes that are ridiculous and not in my clients best interest.
All good, and correct points.
 
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