Independent Insurance Agents Vs Captive Insurance Agents
Field Marketing Organizations or FMOs are not one size fits all. Each FMO is unique with how they run their business. This can vary from being truly independent, part of a larger FMO, working with independent insurance agents, or recruiting career insurance agents.
For most agents starting out in the senior insurance market, they need to figure out if they want to be part of a captive agency or an independent agency. There are a couple benefits to both depending on the company they choose.
Being an Independent Insurance Agent
As an independent insurance agent you have the freedom to contract with multiple carriers through different FMOs or direct with the carrier. An independent agent does not report to anyone – making their own income and marketing their own business or agency. If you are an agent new in the senior market this can be very overwhelming, and you might not know where to start.
However, there are benefits to remaining independent:
- Work with multiple Independent FMOs
- Pick and choose the carriers you want to sell
- Be your own boss
- Set your own hours
- Freedom to market your business anywhere
If you decide to take the route of being an independent insurance agent, it is best to work primarily with an independent FMO. Choose an FMO that gives you top commissions, competitive carriers, great customer support, and additional benefits that you would like for your business.
Being a Captive Insurance Agent
If you want to start your career as an insurance agent but do not what to be on your own, then becoming a captive insurance agent might be a better choice for you. Captive insurance agents will most likely have more back-office support to help grow their business. Some FMOs even have training programs for their captive insurance agents that gives them a bonus and financial support while they are being trained and before they being to sell insurance.
Being a captive agent has its advantages with the agent always having the support, training, and possible steady paycheck to help them get started. However, there are downsides as well, including limited product availability, having a manager to report to, possibly being limited to work in a smaller market, and your hours are what your upline sets for you. You might also have sales requirements that you would be forced to meet which can lead to sales not in the client’s best interest.
There are positives and negatives with becoming an independent or captive agent. What you need to find out is what is best for you and your career goals.
Contact Senior Benefit Services, Inc today for more information!
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