There are many options to choose from as a new insurance agent getting started. One decision you will need to make is what type of work contract you would like to have. If you’re aiming for a choice that’s popular, insurance companies have had growing success with offering captive insurance contracts in recent years because of the way they benefit both agents and the parent company. If you are considering becoming a captive agent, it can be helpful to see how it compares to becoming an independent one.
Becoming a captive agent means that you are committed to working exclusively for a single insurance company and will only sell their services or those approved by them. While it’s true that commission rates tend to be lower with fewer product options to offer clients compared to what independent agents work with, there are also several benefits that continue to draw new agents into a captive contract. Some of these are:
A stable income and steady lead of clients
- Mentorship, financial support, marketing and resources provided by the parent company
- A deeper understanding of the services being sold
Since many agents consider a captive contract to be a favorable option offered by many popular insurance companies, it is a career path that should be considered. By discussing these different contract terms with these agencies, you can find the best fit for you.