Supporting agent transition from captive to independent

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1SmilingNomad
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Supporting agent transition from captive to independent

Post by 1SmilingNomad »

The learning curve for captive agents transitioning to independent can be quite steep. Describe how you onboard these folks into your business. What must you teach them and in what order? What do find they struggle most and how can we better support these folks?
dhailey
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Re: Supporting agent transition from captive to independent

Post by dhailey »

I've been watching this thread like a hawk for a reply... I'm currently making this transition from captive, and now realizing just how different things are, how much I have to learn, etc. Left a captive PL producer role after 4+ years with a major carrier to start an independent agency with another captive colleague. I would be very grateful for any thoughts on this transition, and/or anyone willing to share their experience- thanks!

Dustin
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dustin@insurancecollective.com
Jesse Cunningham V
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Re: Supporting agent transition from captive to independent

Post by Jesse Cunningham V »

Okay - I left captive 2.5 years ago. Built a scratch agency. Recently brought on a partner who came from the same background. Both of us came from State Farm, great company.

I've learned a lot from that transitional period. My partner also experienced some of the same frustrations and "issues" as me - so I know its probably something you may run into as well.

I own Mountain View Insurance Solutions in Maryland. An independent insurance agency that focuses on personal lines insurance including car,home,umbrella,life,di,annuities, etc. I also own a firm, Mountain View Wealth Management that helps people with their investments.

#1 - You will not be much more competitive than any captive agency. I thought because I can represent 20+ carriers that I would destroy any captive agency's quotes. NOT TRUE. At all. Our writing ratio is still 15%-20%.

Here is the key with that though. You have to dial into your niche. Figure out what your carriers LOVE and you will write 90% of them. For us, our carriers cannot be beaten on established retirees. We write 90%+ of them. FIND YOUR NICHE.

#2 - You may find it difficult to work with some of your newly appointed companies. When I started I found which carriers had good rates, ease of use, and a real life underwriter that I could build a rapport with. It made the world of a difference. In my opinion you need 3 good solid standard carriers and 1 sub-standard and surplus lines for everything else. Just my opinion. It is nice to have 100 different carriers to work with - but realistically you will work with 3 at the end of the day.

#3 - Dig Wells. Build Relationships. As an independent you can help MORE types of situations. You never know where the thinnest thread will lead you.

Hope that helps, I have a lot more to share, but I'm going to see about other questions on the forum. PM if you want more info - happy to talk.
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pageltd
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Re: Supporting agent transition from captive to independent

Post by pageltd »

Jesse Cunningham V wrote: Sun Mar 10, 2019 12:29 pm #3 - Dig Wells. Build Relationships. As an independent you can help MORE types of situations. You never know where the thinnest thread will lead you.
True. This should be number one priority. Everything else will follow.
George Page
www.pageins.com
BADTROUT
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Re: Supporting agent transition from captive to independent

Post by BADTROUT »

I think the number one need is the reality check that as a captive there is so much that is handled internally by the carrier you take for granted. When I was captive I worked for the carrier so I didnt have to court and keep happy multiple carriers. For that matter getting carriers at all can be a challenge. It took me quite some time to catch my breath enough to actually get to the selling of insurance.

I've been independent for many years now, and I've started to assist other captives making the transition. To integrate them into my workforce, or to transition them to an agency owner it's best to start with one carriers appetite on CL and learn it, or in PL use a comparative rater to get a feel for the carriers. Start with one, get comfortable, then move to the next.

Bottom line, as with anything, the ones with drive will succeed regardless of the learning curve. Fortunately with many of the Farmers agents we've turned they already know ACORD forms and working with brokerages.
Uwe Philip Kirch
President/CEO Rocky Mountain West Insurance
President/CEO Horizon Agency Systems
Horizon can help you start or grow your independent insurance agency
https://horizonagency.systems
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