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
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.