Independent insurance agent
![]() | The examples and perspective in this article deal primarily with the United States and do not represent a worldwide view of the subject. (May 2010) |
Independent insurance agents, also known as insurance sales agents or "producers", typically sell a variety of insurance and financial products, including property insurance and casualty insurance, life insurance, health insurance, disability insurance, and long-term care insurance.
Property and casualty insurance agents sell
Independent insurance agents typically represent a number of
In addition to insurance policies, agents often sell
There are a number of major trade organizations that support the interests and needs of the independent insurance agent, including Agents For Change,[3] The National Organization of Life and Health Agents (NOLHA),[4] the Independent Insurance Agents & Brokers of America (The Big "I"),[5] and the National Association of Professional Insurance Agents (PIA).[6]
Independent agents are
Independent agents own and control their accounts, policy records, and renewals. If an independent agent’s contract with a particular insurance company terminates, the agent retains the rights to active accounts and may place them with another insurer.
Competition exists between exclusive agents and independent agents. Exclusive agents, who are salaried employees of the insurance company, write a majority of the personal lines business.[8] However, because of the complexities involved in commercial risks, independent agents capture approximately 80 percent of the commercial lines market.[9] It is having access to multiple markets that gives independent agents a competitive advantage in commercial lines.
To add to an independent agent’s competition pool, many insurance companies are direct competitors to the agents they appoint. For example,
References
- ^ Princeton Review, "Insurance Agent/Broker" <http://www.princetonreview.com/Careers.aspx?cid=81>
- ^ a b U.S. Department of Labor, Bureau of Labor Statistics, Occupational Outlook Handbook, 2008-09 Edition <http://www.bls.gov/oco/ocos118.htm>
- ^ "Home". agents4change.net.
- ^ National Organization of Life and Health Guaranty Associations (NOLHGA) <https://www.nolhga.com/home.cfm>
- ^ Independent Insurance Agents & Brokers of America <http://www.iiaba.net/na/default?ContentPreference=NA&ActiveTab=NA&ActiveState=0#SlideFrame_2>
- ^ National Association of Professional Insurance Agents <http://www.pianational.org/>
- ^ National Alliance for Insurance Education and Research, https://www.scic.com/the-research-academy/
- JSTOR 251718.
- ^ American Agent & Broker <http://www.agentandbroker.com/Exclusives/2010/2/Pages/LGA-plans-to-increase-personal-lines-growth-for-independent-agents.aspx>
- ^ "Recent News Releases & Coverage | Progressive Newsroom".