Independent Agents Face Steeper Competition as Carriers Release Captive Agents

In case you haven’t heard, many carriers have been releasing captive agents, and allowing them to become fully independent agents. Insurers have realized that customers want to work with independent agents who can offer them many different kinds of plans from different carriers, not just plans that are tied to one specific carrier. Because of this, many captive agents have made the transition to becoming independent, which has created more competition than ever for independent agents looking for more leads and customers. This might feel a bit alarming to you, but there are still ways you can stand out from the crowd.

Why Carriers Are Making The Switch

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Insurance carriers are switching to independent agents so they can increase profits.

During the Covid-19 pandemic, it made sense for carriers to re-examine their business models, and look for ways to grow while also saving money. Low-interest rates have laid waste to the industry’s ability to grow its accrued revenues over the past few years and captive agents, while well versed in the carrier’s offerings, have a high overhead cost. So to increase their profits, many carriers are switching to working with independent agents, allowing the agents that they work with to sell other carriers’ products.

Standing Out from the Crowd

Because many carriers are now choosing to work with independent agents, you will have to work hard to stand out, and to have a competitive edge over others in your field. If you have built a large clientele base, you’re already ahead of the game. But that doesn’t mean you can get complacent!

You still have to continue to grow, so you will need to focus heavily on marketing and customer service. Make sure that you take the time to build relationships with all of your customers, and work on making your marketing funnel more efficient by:

  • Offering personalized service– To give customers a better experience in the digital world, you need to personalize your customers’ journey with every interaction.
  • Staying on top of interactions– Anticipate your interactions with your customers by using email automation to help inform your customers about renewal dates and plans that might be right for them.
  • Being straightforward– It’s important to make your website and social media accounts as streamlined as possible.
paper with a stamp of certification on the bottom
When you are first starting out, make sure to get a license and insurance for your business.

And if you’re just starting out as an independent agent, the first things you’ll need to focus on will be the practical aspects of building your business, like:

  • Getting business licensing and insurance
  • Designing a logo and other brand-related elements
  • Creating a professional website
  • Developing a plan to automate your marketing
  • Building your client list

Then you’ll need to focus on acquiring leads, nurturing leads, and converting leads into customers, by:

  • Assessing your client acquisition method
  • Defining your unique value
  • Focusing on building relationships with your customers and being timely when responding to them
  • Creating a website with informational content that relates to your customer’s needs and answers the questions they are asking
  • Building your social media presence to get your business known and trusted – take the time to post engaging content there, and stay on top of interactions with potential customers. The more accessible you are, the more you will build your customer base.

Looking For Leads?

When dealing with a growing competitive field, the most important step will be building your customer list. And what better way to do this than getting hand-delivered, ready-to-buy leads from Benepath? When you work with Benepath, receiving reliable, exclusive leads is the easy part.

We provide you with real-time leads through a secured process and give you a customized thank-you page so your leads will be ready for your call. This thank-you page assures leads that they won’t be bounced around between agents and gives them a feeling of connection with you right from the start.

We offer the leads, and while it is up to you to properly nurture your leads, we’ll be behind you every step of the way. You’ll find, though, that our leads don’t need much nurturing because they are ready to speak with you and buy your product! But if they do need some nurturing, follow the effective ways mentioned above to seal the deal. To get more information, fill out the form below or call 866-368-0377.

Advantages of Being An Independent Agent

When you enter the world of insurance sales, you have a big decision to make: should you become an independent agent or a captive agent? While both types of agent are fully licensed to sell insurance, there is a major difference between the two: captive agents are employed by insurance companies and represent only that company, while independent agents have more freedom to work with different insurance companies, instead of working for them. Going the independent agent route will guarantee you more opportunities for success, because you will be able to offer more to your clients. But that is not the only advantage of being an independent agent.

More Optionsmany white doors lined up next to each other

As an independent agent, you can represent multiple insurance companies; doing so allows you to not only become extremely knowledgeable about different plans, but also to provide clients with more options. Captive agents can only compare insurance plans offered by the insurance company they work for, but independent agents have access to many markets, meaning you will be able to compare plans and find what is truly the best option for your customers, so you’ll end up with happier clients – and more referrals!

Freedom & Flexibility

If you become an independent agent, you will own your agency, so you will essentially be your own boss. You will not only have the freedom to decide which carriers you want to work with, but you will also have the flexibility to set your own hours and choose where and when you want to meet with or speak to clients. All of this means that you won’t have to operate around the traditional 9-5 work day; you can even meet with clients in the evenings or on weekends, so you’ll be able to attract people with tighter schedules.

Unbiased Advicewoman with a suit on smiling and holding her laptop

Clients will want to work with you if you are an independent agent because they’ll know that you’ll give them unbiased advice. Captive agents will always try to sell clients a plan from the carrier they work with, even if it is not the best option for them, but because you work with multiple carriers, you can actually find the best plan for them.

It is your choice whether you become an independent agent or a captive agent, but ultimately there are more advantages to being an independent one. Not only will you be your own boss, but you could end up as a much more successful seller: customers will choose to come to you because they know you can offer more, and save them more money.

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