Independent insurance agency focuses on superior service when helping you with insurance for your health,Life,auto, boat, motorcycle, RV, home, and more.
Independent insurance agents typically represent a number of insurance companies, or “carriers”, and sell the products that most appropriately meet the needs of their clients. Independent agents typically are very well trained and knowledgeable of the complexities of the insurance market and insurance law.
Their expertise allows them to advise their clients about appropriate amounts of insurance and insurance coverage for their particular needs
Often, independent insurance agents will work with insurance intermediaries, who obtain quotes from multiple insurance providers and pass them off to the independent agent.
Working with an insurance intermediary service allows the independent agent to review many quotes and offer their clients the best policy options available. For their efforts, independent agents are paid a commission
What Is a Captive Insurance Agency/agent?
Captive insurance agents, otherwise known as exclusive insurance agents, are contracted to work for a single insurance company and sell only that insurance company’s policies. In return for captive agents agreeing to sell only their policies,
insurance companies generally provide their exclusive agents with a fair amount of support, which can include setting them up with an office or other workspace, and giving them access to an administrative staff to process paperwork.
When consumers contact an insurance company about purchasing a policy, they will generally refer them to a captive agent that works in their area.
What Is an Independent Insurance Agency/agent?
Unlike captive insurance agents, independent insurance agents are not contracted to work with one single company, and they can sell policies from multiple insurance companies.
Instead, independent insurance agents contract with multiple insurance companies, selling specific lines of insurance coverage from those companies on a non-exclusive basis.
While independent agents do not have access to the support and referrals that insurance companies provide to their exclusive agents, independent insurance agents have the benefit of being able to offer their clients policies from multiple insurance providers, giving them the ability to offer a wider selection of coverage options.
On the downside, independent insurance agents are generally not allowed to sell policies offered by the companies which rely on captive agents, which often sell their policies through their own agents exclusively
Below are some of the licensing challenges agencies typically face.
• Keeping track of license renewal due dates manually
• Achieving transparency on license stand
• Proactively monitoring license expiration dates
High administrative costs for managing licenses are a typical outcome of these challenges, along with wasted staff-hours. Agencies also have to ensure that they have the correct licensing for their product lines.
For example, some states won’t allow Property & Casualty insurers to offer Life Insurance without additional licensing permission