3 Advantages To Becoming An Independent Insurance Agent With IPA
Insurance Professionals of Arizona | March 24th, 2020
If you’ve been a captive agent for the last few years, have you been thinking about striking out on your own? Maybe you’re frustrated because you know a competitor offers a policy that would better suit your client, but you’re stuck with your carrier’s offerings. Or, maybe you want to earn more money on your sales. Whatever the reason, you’ve decided to explore becoming an independent agent.
Here’s why striking out on your own could be the best career move you’ve ever made…
1. More Product Offerings
When you’re a captive agent, you can only offer clients a limited product range. Many agents find this frustrating. If a client asks about combining multiple policies, such as auto, home, and life, and your carrier doesn’t sell life insurance, you can’t fill all their needs.
Working with IPA gives you access to over 20 industry-leading carriers in life, auto, home, and commercial insurance. Comparison shopping for your clients means that you can present them with a broader range of prices, rather than being locked into one carrier’s fixed premiums. As a captive agent, if your company doesn’t price their policies competitively, you lose out on the business. But as an independent agent, you have more pricing options, and it’ll be easier for you to fit everyone’s budget.
With a wider range of products to pick from, you can customize them to the client’s needs, risk appetite, budget, and desired coverage levels. This allows you to give them personalized care that builds a stronger relationship and keeps clients happy.
2. Greater Client Retention
If your clients are happy, it’s easier to retain their business. Selling insurance is about relationships – as you build your relationship with the client, you learn about their life and their insurance needs. When they have a new baby, you can advise them on increasing their life insurance policy, and they’ll trust your recommendations.
Many people shop policies when it’s time to renew. If you can only offer them the “same-old, same-old”, they could switch coverage. As well, insurance needs change, but your carrier’s offerings might not have kept up. The fact is that if they need professional liability insurance and your carrier doesn’t sell it, they will buy from another agent. Then you risk losing all of their business.
Because you can offer your existing clients a wider selection of products and prices as an independent agent, it helps you retain their business.
3. Higher Commissions
Even though they may draw a salary in the beginning, captive agents realize dwindling commissions over a policy’s life, which ultimately limits their earning potential. In the first year, they might earn 10% on an auto insurance policy, but by the third year, their commission is down to 6%.
Independent agents earn industry-top commissions to begin with and it remains more consistent over time.
Why Become an Independent Agent with IPA?
IPA gives our agents the tools to succeed – like the Management system with a built-in comparative Rater. You will experience increased productivity as you quickly compare quotes for home, auto, life, health, and commercial insurance from over 20 carriers simultaneously. It also allows you to accurately track the progress and activity of your clients in one easy-to-use system. IPA even pays your E&O insurance!
In addition to all these tools, IPA offers an industry-top commission structure – up to 20% – and remains the same percentage over time. You’re building your own business and income, beyond the possibilities of a captive agent, under our umbrella.
Help Meeting Production Requirements
When you represent multiple carriers, you have multiple production requirements to meet. While representing a wide range of companies makes you more competitive, some independent agents struggle to meet multiple carrier’s demands. It can also be stressful when carriers ask you to produce more.
Working in a team with IPA spreads production requirements over 40 plus independent agents. Collectively, our team meets and exceeds all carrier production requirements which takes the pressure off and gives you the support you need to succeed.
When you’re an independent agent, you can offer your clients a better range of products, at better prices, and for larger commissions. IPA has helped dozens of captive agents transition to working and succeeding independently. Contact us below to find out more about joining our team!
IPA Agent Testimonials
Here are the stories of two agents who have seen great success in making the change. You can watch their stories by clicking the links on their videos below:
A Special Invitation From Kent Stewart
Our founder and principal broker, Kent Stewart, has a special invitation to both captive and independent agents and anyone else who is interesting in starting a successful career in insurance: