Updated: Dec 21, 2022
So, you’ve decided to join the insurance industry. Congratulations! You are starting a career that will not only change your life but the lives of each and every client you interact with. When choosing your first agency, you may be wondering where to start. After all there are now more insurance agencies to choose from than ever. We would love to have you onboard with us at Real Financial iKons but even if choose not to become an iKon, we want to make sure that the agency you do work with is a reputable one.
The Three Types of Insurance Agent Jobs
The three different types of insurance agents are captive agents, independent agents, and insurance brokers. While captive insurance agents are dedicated to selling insurance products from a single company, independent agents may represent as few as one insurance company or as many as several dozen insurers. Brokers are independent agents who focus more on the clients than the insurance companies they represent.
Captive Insurance Agents
As they solely sell insurance, captive agents are well aware about the coverage options provided by the insurer they represent and only those. As a result, they are able to give customers very accurate and current information on the coverage they are offering, but they could be less knowledgeable about other goods in a wider market. They are often limited to working at only that agency and their commission tends to be smaller than independent than independent agents or brokers. They may not own their book of business so if they leave their agency they move
Independent Insurance Agents
Since independent agents work with various insurers and are not beholden to a single organization, they are frequently able to provide a greater selection of insurance products. This indicates that they are able to provide insurance firms with a bigger distribution network than captive agents.
Independent agents will have the power to set prices and issue insurance policies on behalf of the insurer(s) they represent, mostly through the systems of the many insurers that they work with. The systems are made to provide consumers with certain policy types, price structures, and support resources. These agents might provide their clients with extra services like assistance with claims, a check of other insurance contracts, and guidance. They are very similar to insurance brokers, however, because their duty is to the insurer and not to the clients, limits to what they can offer a client do exist.
A broker is a qualified insurance professional who offers legal assistance to individuals or organizations wishing to purchase insurance. In some areas, insurance brokers are obligated by law to operate solely in the interests of their clients, which is known as a fiduciary obligation.
A broker will collaborate with clients to determine and put together the appropriate insurance plan for each client's unique coverage requirements. They can shop around to obtain the best plans at the greatest costs based on the needs of their clients because they are not required to sell policies from any one insurance provider.
Things to Look Out For When Applying to a New Agency
~ If your commission structure isn't clear, you should run.
~ If your highest potential commission in the company is any less than my lowest starting commission (90%), you should run.
~ If you have to recruit people to increase your commission, you should run.
~ If you can't set your own schedule or work remotely from wherever you want, you should run.
~ If you're not provided proper training from an experienced individual with a proven track record of success in the industry, you should run.
~ If you're not fully vested from day one for renewals, you should run.
~ If you lose your book of business for moving on from a company, you should run.
~ If you only sell one type of life insurance, you should run.
~ If you're forced to sign a non-compete or are considered a captive agent, you should run.
~ If you're told to make a list of your friends and family, asked to cold call, or "given leads..."
Why Real Financial iKons Should Be the Agency You Choose
~ Our commission starts at 90% and you can increase your commission % up to 145%.
~ You can earn bonuses just off of your own personal production (without recruiting anyone)
~ You can set your own schedule and work remotely from anywhere
~ Training is provided from top agents in the industry who led by example, not just sit back and collect overrides
~ You're fully vested from day one
~ Your book of business always belongs to you
~ You have access to several different insurance carriers and their products
~ You're an independent agent who is contracted directly with the insurance carriers, and can broker out with other IMOs for additional products if you wish
~You're provided access to lead programs with warm leads who have requested information on life insurance coverage
When selecting an insurance agency to join, it's crucial to consider the three types of insurance agents: captive agents, independent agents, and insurance brokers. Each type has its own advantages and disadvantages, and it's essential to evaluate them carefully to determine which one is the best fit for your career. To avoid working with a less reputable company, be sure to watch out for red flags when applying to a new agency. Our article aims to provide you with valuable information to help you make an informed decision about your career in the insurance industry. Choosing the right insurance agency is a crucial decision that will impact your career in the industry.
If you are considering becoming an agent or if you are thinking about changing companies, Real Financial would love to have you on our team.
Click here to get started on your new career path and become an iKon