Types of Captive Agents and Their Benefits

Types of Captive Agents and Their Benefits

When you decide to become an insurance agent, you have several choices of what path you’d like to take. Agents have the choice of becoming an independent agent or a captive. Even when settling on becoming a captive agent, you may even find yourself with an additional option of having a rent-a-captive contract. With the many benefits of being a captive, you may wonder about the additional benefits of having a rent-a-captive contract instead.

What It Is

Being a captive agent in and of itself has many benefits. Since a captive agent fully commits to selling only on behalf of the insurance agency they represent, they can look forward to the following benefits:

  • The parent company provides more reliable workflow and income
  • Being familiar with the products being sold through the parent company
  • Closer networking and support within the agency
  • Benefits, overhead expenses, start-up costs and other financial support covered by the parent company

Contract Options

Those who decide to go the captive route may have the option to choose a rent-a-captive program This subcategory also has unique benefits such as more flexibility and control over the program terms. The parent company, too, can benefit from this type of set-up, with lower costs as the rent-a-captive is still growing his or her business. Speak with your agency today to help weigh out the pros and cons of both types of contracts.