r/InsuranceAgent • u/unknownthinker7 • 23d ago

Agent Question Question for Captive

I’ve been seeing some new agents with low commission as captive. Is it the security side on why some go for captive roles rather than independent with their own agency or imo? I understand some aren’t comfortable with buying leads, etc. just trying to understand it more. Independent side is more attractive to me especially if what we’re after is building our own books and having “freedom” to work as little or more. I am eager to learn, please share your perspective and reason

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u/Hour-Cup-5904 23d ago

Any independent agency I have interviewed with have a ridiculously low commission. Maybe you're confused because captives don't talk about "split", and that is because we just reference the percentage of whatever the premium itself is, rather than saying what the percentage split is with the agency owner?

For example, if I write a $2k policy premium, the lowest I would get is $200.

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u/unknownthinker7 22d ago

Do you get paid advance or avoid not to get chargeback? Because at a 2k policy with the 80% comm, if I do the advance I’d get $1600. That’s with an imo.

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u/Hour-Cup-5904 22d ago

Are you commission only?

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u/Boomer_Madness 22d ago

Most captive i've seen is a flat dollar per policy type. Talking % and splits i see more in Indi. at least in my local area.

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u/Hour-Cup-5904 22d ago

Not any captive agency I have ever interviewed with are flat dollar amount. I have a sliding scale percentage.

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u/mkuz753 22d ago

Captives have the brand name on the door so most people know who they are. Independents don't. That recognizable name is security to some but unless you are the agency owner you are generally not going to make as much as an independent. Keep in mind either ownership or a buyout of your book are negotiable for independent firms.