Tips for Transitioning from a Captive to an Independent Insurance Agent

Are you currently working as a captive insurance agent but are itching to break out on your own? Becoming an insurance agent in the first place is one thing but transitioning from a captive to an independent agent can seem tricky. Fortunately, even if you’re excited about the idea but are unsure how to become an independent insurance agent, you can kick-start the process and ensure a smooth transition by following some essential steps.

Consider Whether You’re Ready To Leave Behind Current Support Systems

Before you make a definitive move, take inventory of your current business book and support system at work. Ask yourself what your day-to-day work would look like without that support system, and whether you’re ready to leave it behind. The power of office connections is sometimes easy to underestimate, and it’s okay if you decide you still need some time to find your footing before becoming independent.

Detail Your Business Plan, Lean on Connections and Secure Your Finances

If you do decide to go ahead with your transition, you’ll need to start getting into the nitty-gritty of this move. This entails detailing a business plan, leaning on important connections, and stabilizing your finances. As you begin this process, be sure to go through the following steps.

  •     Review your current contractual obligations and ask your boss whether you can take your business book with you
  • Decide whether you’ll fully fund your ventures yourself, apply for bank loans, or search for potential financial backers
  •     Flesh out a thorough business plan, including which products you’ll sell and what marketing venues you’ll pursue
  •     Research the insurance products you want to provide and thoroughly review relevant legalities
  •     Lean on current connections and continue networking with other independent insurance agents
  •     Join an association of independent agents in your area
  •     Invest in cutting-edge office technology to help streamline your business and make your services more efficient
  •     Consider meeting with a tax attorney to track your finances and plan ahead for tax season

When opening a new office, you will need insurance products to offer your customers. Consider contracting with a good all lines wholesale agency, such as Mavon, that can offer you a broad range of Personal, Commercial, and Professional Liability markets. For more information contact: or 630-242-3124.

Shift Your Mentality To Being a Business Boss

Finally, once you’re out on your own, remember that you will effectively be your own boss. This shift requires a change in mentality: you will no longer be acting simply as an employee in one department, but will have to account for other aspects of running a business as well. Take some time to familiarize yourself with:

  •     Marketing and sales
  •     Accounting and payroll
  •     Employee hiring and other human resources aspects

Becoming an insurance agent independent from a large firm can feel like a tough transition at first, but for determined and capable agents, it’s entirely doable. As you begin the transition process, make sure you move through these essential steps to cover necessary ground and give your new venture the best possible start.

About Mavon Insurance

At Mavon Insurance, we pride ourselves on our unique approach to insurance. We focus on integrity, communication, professionalism, respect and gratitude to help our clients succeed and place business in specialized markets. For more information about our products, or to become an agent, contact us today at (855) 248-1480.