4 Tips for Transitioning from being an Exclusive Insurance Agent to an Independent Agent

September 15, 2022

Before you make the switch from becoming a captive or exclusive insurance agent to an independent agent you need a plan.

Find a support system.

Even with years of insurance experience, navigating the differences between running a captive insurance agency and an independent agency seem a little daunting at times. What rater/CRM to use, marketing, websites, getting carrier contracts. The checklist can seem to grow by the day. By partnering with an organization like Midwest Insurance Agency Alliance, our experienced team provides support in making sure you not only get off on the right track but have minimal downtime.

Create a business plan.

You probably did this when you first started your captive agency. However, having a roadmap to follow when going independent will help you to know where you’re going in order to figure out how you’re going to get there. How will you market? Do you have the staff or at what point would you like to hire staff? What are your expenses?

Set goals and block your calendar to make sure your stay accountable to those goals.

Think back to when you first become a captive agent. Your district manager or agency manager likely have you a daily or weekly goal to strive for before you called it a day or victory. How many quotes do you need to prepare each day? How many policies or households do you need to issue each week or month to quickly replace the income you were generating at your captive agency?

Crunch the numbers.

It’s pretty shocking (and exciting) when you start the do the math to see how great the earning potential is as an independent insurance agent. Let’s say your captive carrier is paying you 9%-10% new business commission on a personal auto policy. Let’s also say that your close ratio is roughly 12%. Now, imagine what the same effort looks like only now, as an independent agent, you’re making 15% new business on average. You’re also close anywhere from 70%-80%. The picture will start to become pretty clear that you’ll be able to not only build your new agency to the level of your previous captive agency, but surpass the income in a much quicker time than most agents ever imagine.



Jamie Wright
MIAA VP Recruiting  – Iowa
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Jamie is responsible for membership recruitment, development, and insurance company relations for MIAA agencies located in the state of Iowa. Jamie helps prospective member agencies achieve their growth goals by connecting them with the carrier options, resources, and support available to them with MIAA.