Captive Agent vs. Independent Agent: Which Is the Right Path for You?

Maybe it is that you are starting a new business or that you already own a business, you ought to know what the right path for you as an agent is. Is working as a captive agent the choice for you, or becoming an independent agent the right path? Are you already working in a captive environment? So maybe it is time for you to leave the nest and explore the world independently. This article is one way that will help you explore or even maybe decide what you want.

As all things are balanced with both their advantages and their flaws, so is being captive and independent.

As a captive agency, you will have a stable and secure business. This is safer and the easier way out to run a business. However, the stability comes with a price as you will be bound to the parent’s product with a huge share of your profit going to them. Bound by the parent’s product, you won’t have much space for your freedom and you will have to work under them at all time. Limited policy options with limited earning potential with a strict guideline to follow for a few of the benefits they provide can be quite troublesome. All the hard work for the growth of a company you don’t even own or have the claim to.

As an independent agent, you will be the king to your own reign. The business design, decision, and all the profits are yours to claim. It can provide to be difficult without previous experience and you will be working without any carrier support. Full control over the whole business can be overwhelming but you will have a larger market with more products and services to provide to your clients. If you have vast options and services your customers can pick out from, the majority of your current and future customers are more likely to stick with you as opposed to limited and handpicked services captive agents provide. Starting from scratch, you will be building your own empire that you can turn to the direction you truly want and give your clients opportunities a captive never could.

This is a huge step so there are many things to consider before taking the step.

Pros and Cons: Captive Agent vs. Independent Agent

Captive Agent vs. Independent Agent: Which Is the Right Path for You?




  • Provides a book of business
  • Financial support and stability
  • Resources and guidance


  • Limited to the parent’s product
  • Strict guideline and rules to follow
  • Business built is for the parent company
  • Limited policy options
  • Limited earning




  • Variety of options and services for your clients
  • Vast market
  • No restrictions to work under
  • Higher commission


  • Building a new book of business
  • Responsible for all expenses personally
  • Obtaining clients


You can also visit other pages and sites to get more details on the pros and cons of a captive and independent agency. Sites like AGENCYHEIGHT, PocketSense, can provide you with the extra help you need.


The Overview

The decision is totally up to you while our work is to help you choose a path giving you the option and ideas on what and how one or the other option would impact you and your goals/needs. With higher risk, independent agents make higher income with the freedom that a captive one doesn’t allow. You can explore and grow a business you can call your own and reign over it. However, if stability is what you choose over the limitless, unrestricted and vast possibilities with higher income, the captive agency is your way.

Also to help with the decision, keep in mind that joining an insurance cluster will broaden your network, shoulder your burden and help you develop your business focusing on all the important stuff while they deal with the less important ones, all the while letting you keep your independent status. Organizations like these will contribute to most of your unnecessary paperwork and distractions for a price but will help you free most of your time that you can invest in the betterment of the clients and your business as an independent agent.

Being independent might sound hard, but many agents are shifting towards independence as other insurance agency cluster help them grow their business individually. So do consider these choices before making your ultimate decision. If you already work under a captive agency, it is time that you consider exploring more into your field of work and take chances so you can grow into something a tight and limited space won’t allow you to. The world is constantly shifting and changing, when will you? The judgment is yours.

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