Too Many Demands For Farmers Insurance Captive Agents

Why are Farmers captive agents looking to pursue other opportunities in the insurance industry?

Here are some of the main reasons Farmers Insurance captive agents are flying away in droves:

  1. Controlled by one insurer
  2. High quotas
  3. Low commissions
  4. Not owning your book of clients
  5. Limited to selling one insurance product
  6. Little freedom

Rates are going up, while compensation remains low. Close ratios are low, in many cases below 10%. Farmers makes a lot of demands on their captive agents, but often without providing the requisite support to meet those demands adequately. You don’t have equity in your book of business.

On top of all that, being a captive agent, whether for Farmers or any other giant insurance company, is itself problematic. There’s a reason they call it “captive”—you are beholden to one insurer and the products of that insurer. You have little personal freedom to make your own schedules and decisions. It’s also hard to do what is right for your own clientele.

Captive agents who jump ship from Farmers are looking for better situations that offer more growth opportunities to earn higher revenues and act as their own boss.

Specifically, a move to becoming your own boss as a Compass branch owner offers the following advantages:

  1. Equity in your book of clients
  2. Higher earning potential
  3. Greater independence and flexibility
  4. Can sell more insurance products across multiple carriers
  5. Provide better customer service
  6. Better tools and support

Let’s take a closer look at these in a little more detail.


Equity In Your Book

Farmers holds equity in your book. This means if you spend the next 10 to 20 years building your business, it’s not really yours. Say you want to go somewhere other than Farmers. You aren’t bringing your book with you. The work you did building your business belongs to Farmers.

That’s what makes becoming a Compass Insurance branch owner so attractive. You have equity in your book. So, if you are a Farmers captive agent and just starting out without much equity in your book, now is the time to jump ship before it gets too late and you risk leaving a significant amount of money to Farmers!


Higher Earning Potential

As a Compass branch owner, you get to invest in your future, build your book, and own your own business with minimal start-up costs. Act in the best interests of your clients and shop around for the best commission rates and incentives from different carriers.

The earning potential is largely up to you and how you manage your business.


Greater Independence and Flexibility

Compass branch owners run their own businesses as they see fit, not what the insurer dictates to them. Set your own goals, do what’s best for your clients, not what’s best for the insurance company.

Enjoy a positive work/life balance when you work for yourself and set your own hours. It’s time to break free of the chains that Farmers puts on their captive agents.


Provide Better Customer Service

You’re no longer forced to sell policies from one insurer that may not fit customer needs and budgets. Compass Insurance branch owners get access to multiple carriers and products so you can compare quotes and coverage options. Serve your customer, and not Farmers Insurance!


Get Better Tools and Support

Compass branch owners enjoy advanced technology and tools to improve their operations.

Examples include online quoting, policy management, live and learner-led training, and customer service platforms that make it easier for you to serve your clients.


Don’t Let Farmers Shackles Hold You Back

Becoming a Compass Insurance branch owner offers greater opportunities while breaking the chains of Farmers and the grossly flawed captive agent position. Compass branch owners see more success than typical business owners or franchise operators with less capital investment.

Compass has over 20 insurance carriers to choose from in about 20 states for home, auto, business, and more insurance products, so you can sell your clients the best options that best suit their needs. And you don’t need to spend time chasing potential business, because Compass has already developed business relationships to help you connect with clients.

So focus on your clients while Compass provides A-Z support to help grow your insurance business. If you just started out as a Farmers captive agent, now is the best time to consider becoming your own boss before you risk losing all that equity in your book.

Open Your Own Compass Insurance Branch

Don’t let the shackles of Farmers hold you back. Compass Insurance branch owners see more success than typical business owners or franchise operators with less capital investment. Sign up for our blog for further updates, or contact us today about becoming a Compass branch office.