These ideas work, whether you’re new to the
independent arena or new to the business altogether
By Carol Drake
Starting a career as an independent insurance agent—whether you’re new to the insurance business or you’ve worked in the captive insurance space previously—can be both rewarding and challenging. Embarking on a journey as a new independent insurance agent is a venture filled with promise and potential as you will be able to serve more as a trusted advisor with clients and offer them more customized coverage.
While the career offers a unique path filled with opportunities—especially in the current insurance climate—navigating the insurance landscape’s complexities demands a strategic approach. To pave your way to success, consider integrating these eight essentials:
Learn continuously. The foundation of success in the insurance industry lies in your knowledge. Cultivate a strong understanding of insurance products, coverage nuances, underwriting intricacies, and compliance requirements. Seek industry certifications and prioritize ongoing learning to stay in sync with emerging trends and evolving best practices. Stay on top of industry news and economic trends so you can be prepared to weather any storm and take advantage of any opportunity.
A well-informed agent not only garners clients’ and carriers’ trust but also offers superior guidance.
Define and master your specialty. Pinpoint your niche within the vast insurance market. Specialization—be it in auto, home, life, or commercial insurance—allows you to concentrate your efforts and master a specific domain. Another form of specialization is in serving a particular community, industry or emerging need such as cyber insurance.
A well-defined specialty empowers you to tailor your marketing strategies and client interactions for maximum impact and will set you apart from your competitors.
Harness digital presence. In today’s digital era, a robust online presence is paramount. Develop a polished website that showcases your expertise, services, and client endorsements. But more than that, create a well-defined strategy to leverage social media platforms for potential (and current) client engagement.
Having these types of interactive online conversations enables your customers to absorb informative content for educational purposes (which makes your job easier!) and will position you as a thought leader in the insurance marketplace.
Additionally, the insurance industry has historically been slow to adopt digital technologies for client interaction, which is part of what has given rise to the direct model of insurance sales. Adopting digital technologies like CRM (customer relationship management) systems to help service clients will help you stay competitive and make your life, as well as your agency staff’s lives easier.
Network intelligently. Crafting a strong network forms the backbone of an independent agent’s path to success. Participate in industry gatherings, join local business associations, and connect with fellow professionals. Networking not only manifests leads, but it also offers opportunities to learn from others’ experiences and potentially foster collaborations for maximum business growth.
Most independent agents cite client referrals as their greatest source of new business.
Deliver exemplary customer service. The ability to provide better customer service is the number one reason most insurance agents decide to go the independent route. Dishing out top-notch service sets you apart in a highly competitive arena, especially in the current industry climate. Listen attentively to clients’ needs, present customized solutions, and promptly address their questions and requests. Forging strong agent-client bonds can lead to repeat business, referrals, and a sterling reputation. Regularly update clients about policy modifications, renewal timelines, and industry updates. A well-informed client is poised to make well-considered choices which ultimately makes your job easier.
Set goals to build your brand. Establishing clear and attainable goals for your agency is pivotal and will keep your agency focused and strengthen your brand. To grow and be successful, you need to know who you want to be. Establishing your brand identity is a crucial step for any agency owner, and it encompasses more than your logo—it’s your values, expertise, and service niche.
Once you’ve established your brand, you need to continuously set goals to make sure you stay true to that brand identity. Whether it’s attaining a specific client count, elevating policy retention rates, or diversifying your product portfolio, goals offer direction and motivation.
Regularly gauge your progress and tweak your approaches as needed. If you consistently deliver on the things your brand promises to deliver, you’ll build trust with customers and prospects.
Adapt, innovate and retain. The insurance landscape is in perpetual motion. Currently in one of the hardest markets in history, the industry is a challenge for any agency owner to navigate. To succeed in this market, agents must be willing to embrace new technologies, tools, and trends that can amplify their business operations and make client interactions easier. Embracing change and being open to adjusting your strategies in response to evolving client needs and market dynamics are keys to longevity. In addition, it’s important to consider evolving and expanding to offer new lines of business and ways to attract new clients, or even expand your business with existing clients. Finally, while attracting new clients is essential, don’t overlook the value of client retention. Satisfied clients are more likely to renew policies and refer others to your agency. Maintaining regular client communication can also lead to additional sales with current customer policies.
Partner with a network or alliance. Most important, incorporating the strength and power of an agency network or alliance can be a game-changer in your journey as an independent insurance agent.
Collaborating with a network provides you access to pooled resources, established industry relationships, and shared expertise. It can expedite your entry into a number of markets, expand your reach with carrier reps, and accelerate your growth trajectory by giving you access to personal advice from a trusted advisor.
Belonging to a network grants members insights into industry happenings, fosters mentorship opportunities, and facilitates collective problem-solving. This relationship gives you access to better negotiation power with carriers, higher commission rates, exclusive bonus opportunities from carriers, and more competitive offerings for clients.
Maximizing your potential as an independent insurance agent and successful business owner necessitates a blend of knowledge, tenacity, and strategic finesse. By prioritizing education, customer service, communication, and relationships, you can pave your route to a satisfying and financially successful career in the insurance industry.
Remember, building a flourishing insurance agency requires dedication and perseverance, but armed with these strategies, you can materialize your aspirations and create a meaningful impact on your clients’ lives.
The author
Carol Drake is senior vice president, personal lines at Smart Choice®, a network of more than 10,000 independent insurance agencies. She joined the organization as vice president, corporate strategy, in September 2017 and was promoted to her current role in January 2024. She is primarily responsible for working with Smart Choice’s carrier partners to design strategies that maximize profit for both agencies and carriers. Previously, she was the vice president of marketing and then vice president of national accounts at Grange Insurance. Her extensive background in insurance began in 1991 at The Midland Life Insurance Company, where she held several positions, including director of business integration and marketing. For information, visit smartchoiceagents.com.
