Independent insurance agents , also known as insurance sales agents or "producers", usually sell various insurance and financial products, including property and accident insurance, life insurance, health insurance, disability insurance, and long-term care insurance.
Property and accident insurance agents sell insurance policies that protect individuals and businesses from financial losses from car accidents, fires, theft, storms, and other events that could damage property. For businesses, property and casualty insurance may also include injured Workers' Compensation Insurance, product liability claims, or medical malpractice claims.
Independent insurance agents usually represent a number of insurance companies, or "operators", and sell products that best suit their client's needs. Independent agents are usually highly trained and knowledgeable about the complexities of the insurance market and insurance laws. Their expertise allows them to advise their clients about the right amount of insurance and insurance coverage for their particular needs. Often, independent insurance agents will work with insurance brokers, who get offers from various insurance providers and give them to independent agents. Working with an insurance intermediary service allows independent agencies to review many quotes and offer their clients the best available policy options. For their efforts, independent agents are paid a commission (rewards).
In addition to insurance policies, agents often sell mutual funds, annuities, and products that address wealth management, pensions, and property planning. Independent agents must be licensed from the states where they sell insurance and financial products.
There are a number of major trade organizations that support the interests and needs of independent insurance agents, including Agents for Change, National Organizational Life and Health Agent (NOLHA), Independent Insurance Agents & Broker of America (The Big "I"), and the National Association of Professional Insurance Agents (PIA).
Independent agents are independent contractors for the insurance company they represent. Some companies may authorize the agent to be sold to them, but the agent remains an independent businessman. While agents collect commissions, they do not collect salaries from the companies they represent. On average, independent agents work with thirteen property and casualties and six life and health insurance companies on a regular basis.
Independent agents own and control their accounts, policy notes, and extensions. If the contract of an independent agent with a particular insurance company expires, the agent retains the right to active account and may place it on another insurance company.
Competition exists between exclusive agents and independent agents. The exclusive agent, who is a paid employee at the insurance company, writes most of the personal affairs. However, due to the complexity involved in commercial risk, independent agents capture about 80 percent of the commercial market. It has access to multiple markets that give agents an independent competitive advantage in commercial lines.
To add to the pool of independent agent competitions, many insurance companies are direct competitors to their designated agents. For example, Progressive Insurance spends nearly $ 300 million per year on direct advertising to the public. However, Progressive is the largest private passenger car insurance writer in the country through independent agent distribution channels.
Video Independent insurance agent
References
Maps Independent insurance agent
External links
- Independent Insurance Agent & amp; Broker of America
- National Life and Health Organization (NOLHA)
Source of the article : Wikipedia
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