4 Myths Exclusive Insurance Carriers Don’t Want Their Agents to Know — And Why

By: Bill Gordon, VP of Sales | Southwest Insurance Agents Alliance

Exclusive, or captive, insurance carriers have built their empires on loyalty, familiarity, and brand repetition. If you’re one of their agents, you’ve probably heard the talking points for years: “You’re backed by the best,” “Clients don’t need more choices,” and “This is the only way to succeed.”

But here’s the truth: More agents than ever are walking away from the captive model — and they’re not looking back.

In fact, according to the Independent Insurance Agents & Brokers of America (IIABA), over 62% of all property and casualty premiums in the U.S. are now written by independent agents. That’s not a trend. That’s a shift.

Let’s dig into four myths exclusive carriers continue to push — and why they don’t hold up anymore.

🚫 Myth #1: “You Can’t Grow Without Our Brand Behind You”

Why they say it: Captive carriers invest heavily in national branding and advertising. They want you to believe your success depends on their name, not your expertise.

The truth: Today’s consumers trust people over logos. Independent agents build lasting relationships based on value, not brand loyalty. They offer personalized service, local insight, and multiple coverage options that keep clients from shopping elsewhere.

Stat Check: Independent agents control nearly 88% of the commercial lines market, according to J.D. Power. Why? Because businesses want options — not one-size-fits-all policies.

🚫 Myth #2: “Multiple Carriers Just Confuse the Client”

Why they say it: Captive carriers argue that too many options overwhelm buyers, and a single solution makes for a smoother sale.

The truth: Clients today expect to compare. Whether it’s buying a car, booking a flight, or insuring their home, they want to see the range of pricing and protection available. Independent agents meet that demand — and close more deals because of it.

Consumers are 63% more likely to buy from agents who offer choice, according to a PIA National study. Independence isn’t confusing — it’s empowering.

🚫 Myth #3: “You’ll Make Less Money as an Independent Agent”

Why they say it: Exclusive carriers emphasize base salaries, bonuses, and benefits to make independence sound risky or unstable.

The truth: Independent agents typically earn more, especially over time. With access to competitive commissions, renewal income, and ownership of your book, you’re not just building income — you’re building equity.

According to the 2023 Future One Agency Universe Study, over 50% of independent agency principals earn more than $150,000 annually, with many surpassing that through profit-sharing and business ownership.

🚫 Myth #4: “We Offer Everything You’ll Ever Need”

Why they say it: Captive carriers promote their tech, training, and product line as complete solutions.

The truth: Exclusive agents are often handcuffed by underwriting restrictions, appetite gaps, and a lack of specialty products. Independent agents can pivot quickly and serve clients in virtually every line of business — personal, commercial, life, and niche markets.

Independent agents write more lines of business per client than captive agents. That means deeper relationships and higher lifetime value from every policyholder.

Why Do These Myths Persist?

Because the captive model works best when agents stay loyal — and uninformed.

But with over 36,000 independent agencies now operating in the U.S., the tide has turned. Technology, access to aggregators, and a hunger for autonomy are driving explosive growth in the independent channel.

In the last decade, the independent agent channel has grown faster than exclusive models, and now accounts for the majority of new agency startups nationwide.

Ready to Break Free?

You don’t need to go independent alone. Today’s networks, alliances, and aggregators provide the back-end support, market access, and training that rival (and often exceed) captive models — but without the quotas, limitations, or corporate handcuffs.

Ready to explore what independence looks like? Let’s talk — confidentially and honestly.

Final Thoughts

If you’re an exclusive agent starting to ask tough questions, you’re not alone. Thousands of high-performing agents are choosing independence — not because it’s easier, but because it’s smarter.

They’re trading commission caps for profit-sharing. Territory restrictions for true market access. And dependence… for ownership.

It’s your book. It should be your business.

About the Author

Bill Gordon is Vice President of Sales for Southwest Insurance Agents Alliance (SIAA). With over 38 years of experience — including owning both a captive and independent agency — Bill now coaches and mentors insurance agents in Arizona, Nevada, and New Mexico, looking to scale profitably through access to markets, sales strategy, and real growth tools.

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