Evaluating Your Options: Staying a Captive Agent vs. Starting Your Agency  



Mar 5th, 2024

Are you a captive insurance agent considering branching out and starting your own independent agency? Making the leap from captive to independent can be a tough decision. This blog weighs the pros and cons of staying a captive agent vs opening your agency to help you take the next step of your career.

AspectStaying a Captive Agent Starting Your Own Independent Agency
Product OfferingRestricted to one company’s products Freedom to sell multiple products from several carriers, liberty to choose the carriers you want to work with
Flexibility Limited flexibility in pricing and underwriting Completely responsible for all agency management operations
Brand Recognition Easily can benefit from established company brands Will need to build your own brand, reputation and trust from scratch. Can be a rewarding yet challenging process.
Training and Support Usually, comprehensive training and support is provided by the company you are working for Training and development are all up to you. Hence, it might not be as easy as when you were a captive agent, but you also enjoy the liberty to handpick the trainings you know you and your team needs to excel according to your skills, experiences and market needs at the present time
Income Steady salary, possibility of commissions and bonuses. However, income may have a cap; limited commission structure can be an issue. Income might not be steady, but you have the power to earn exponentially as you can sell with multiple carriers and offer a wide range of products. Also, since it's your business, your work is directly proportionate to your income
Business Autonomy Limited autonomy in decision-making and product offerings Full autonomy to make business decisions
Initial Costs Upfront costs are usually much lower Requires substantial investment to start and operate, but once your agency starts getting traction it's possible to get the return on your investment with good profits
Responsibility Fewer responsibilities outside sales and servicing Must manage all aspects of the agency operation

Captive Agent vs. Independent Agency Owner: Pros and Cons

As a captive agent, you enjoy stability and ready-made support from the parent company. However, owning an independent agency allows you to be your own boss, set your own goals, and build a client-focused reputation.

The choice comes down to personal preferences, but independent agency ownership offers benefits like:

  • Flexibility to forge your own path
  • Potential for unlimited growth
  • Being in control of your business

For entrepreneurial spirits who love the idea of running their own show, independent agency ownership is an enticing option.

What Makes Starting an Insurance Agency with Renegade Easy?

If you decide to open an independent agency, partnering with Renegade makes the transition seamless. Renegade provides a suite of services tailored for new agency owners, including:

  • Industry-leading commission splits
  • No high franchise fees
  • Access to top insurance carriers
  • Complete post-sale and renewal support
  • Automated billing and claims servicing

And that’s just the start. To learn more about launching your successful independent agency with Renegade, let’s talk.

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