Reasons to Become an Independent Insurance Agent in 2021

Consider Insurance Professionals of Arizona

Are you looking to branch out in 2021? Want to grow your business, better serve your clients, and control your schedule? Consider becoming an independent insurance agent at Insurance Professionals of Arizona!

If you’ve been working with one insurance carrier, you’ve probably had some frustrating moments. A client asks about the safe driver discount, telematics to reduce their rate, or they want to know about travel insurance or pet insurance, but your carrier doesn’t offer it.

Becoming an independent agent expands your options. You can sell more policies, reach more customers, and meet more of their needs. Oh, and make more money. Read on to find out why 2021 is the time to strike out on your own.

Working Remotely Has Never Been Easier

Remote work had been growing even before the coronavirus pandemic but the pandemic has accelerated this trend.

By June 2020, a few months into lockdowns and quarantine, over 42% of the United States workforce was working from home. Arizona is one of the best places to do it – in Scottsdale, one in seven residents worked from home even before the pandemic began. 

In response to this trend, tools such as Zoom, Slack, and Trello have become ubiquitous. The suite of digital tools to enable a successful home office has never been stronger. And since working from home is the new norm, your business will still be seen as legitimate even if you’re not working out of an office.

Make Your Own Schedule

Need to get your kid signed into a Zoom session for school? Distance learning brought the school into the home. Many parents found it harder to balance work and homeschooling and realized that they needed a flexible schedule.

When you’re an independent insurance agent you can work around your other responsibilities. Prospect new clients when the kids are asleep, or in the bleachers at a game. You’re not tied to a desk or a 9 to 5 office job. For many people, working independently allows them to maintain their work-life balance.

Insurers Have Been Making Digital Strides Like Never Before

While incumbents have been undergoing digital transformations for years, the COVID-19 pandemic threw everything into hyperdrive. No longer was it possible to rely upon pen and paper applications filled out in an office? 

Now, you can meet with your clients on a videoconference and then complete their application through an online portal. AI chatbots often answer many of their questions before they contact you.

All of these digital advancements make it easier for you to write policies, freeing up even more time to service your clients and reach new prospects. It’s an exciting time to be in the insurance industry.

Increased Product Offerings

When you’re an agent for one provider you can only sell their products. If a client wants a safe driving discount but your company doesn’t offer it, you could lose their business. But when you’re an independent agent, you’re not limited to one product suite.

Similarly, being able to offer your clients a larger variety of products makes it easier to retain their business. You can find the right policy for them, shopping among many offerings to balance premiums, deductibles, and coverage.  Partnering with IPA gives you access to over 50 industry-leading carriers in life, auto, home, and commercial insurance.

Make More Money in Commissions

Captive agents often experience reduced commissions on renewal. After they initially sell the policy, their commission often drops for years two and after. Independent agents earn higher commissions – up to 20% – and see less of a decline in commission over time. 

On average, captive agents earn 5-10% of any policy they sell, as a result, independent agents earn 15% on average. You can also cross-sell more easily when you can represent several different carriers who might each sell life insurance, auto, and home insurance, or professional liability insurance. Clients often have multiple insurance needs, and independent agents are in a better position to meet them. 

If you’re interested in finding out more about working for Insurance Professionals of Arizona, reach out today. We support our independent agents and help them achieve success!

We’re here to help! Call us today.

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