Depending on how much control an insurance carrier wishes to exert over its brand vs. the amount of access to new markets it wishes to penetrate, insurance carriers have the choice to work with captive agents or independents.
Executive Summary
Thomas Hall, VP of Operations for Vymo, explores the sometimes-overlooked value of a semi-captive agency—a term he uses to describe a high-touch independent agent that primarily sells a given carrier's products but offers those of other carriers, too. In this article, he describes how to make the semi-captive agency more productive—building loyalty and retention with targeted incentive, shoutouts and robust digital tools.There’s also a middle path, one toward which the industry is gradually moving, given prevailing market conditions: the high-touch independent agent, semi-captive by nature, primarily selling products exclusively from one insurer but retaining the flexibility to offer others when necessary.
When choosing an agency model, carriers must conduct a careful cost-benefit analysis. This decision often mirrors the digital transformation process many carriers face—deciding whether to build systems in-house, contract for custom solutions or purchase off-the-shelf options. Similarly, the balance of control versus cost plays a significant role in choosing between captive, semi-captive and independent agencies. The value of the semi-captive model is that it encompasses highly individualized seller enablement through training, lead gen and high-touch performance management.
