’ve been working for a captive insurance agency for a while, you’ve probably had moments where you wondered what life would look like if you went independent. Maybe you’ve grown tired of strict quotas, limited carrier options, or the lack of ownership over your book of business. No matter the motive, leaving captive agency and becoming an independent agent is one of the biggest career decisions they will ever make.

It is not a choice to make carelessly, but to many, it is the means of financial freedom, career control, and eventual self-development. So what makes you know when you are actually ready to leap?

Then a 5-step test to tell you that you are prepared to leave your captive agency and become a self-sufficient insurance agent, as well as tips on how to become an independent insurance agent, and useful tips on becoming an independent agency.

1. You’re Craving More Control Over Your Career

Being a captive agent is a great place to begin in the industry - you are trained, will have a constant flow of leads, and you will be known as a brand. However, as time goes by, the very very structure that was supportive might start becoming restrictive.

The captive agents are usually restricted in the type of products that they can sell, the carriers that they represent, and the way that they position themselves.

If you’ve ever found yourself saying, “If only I could offer my clients more options…”, that’s a major sign you’re ready to explore transitioning from captive to independent.

Being an independent insurance agent, you dictate the game. You select your carriers, establish your commissions, establish your marketing strategy, and create the client experience designed to match your values. Such a freedom gives you a chance to really serve your clients-- not only your parent organization.

Pro Tip: Take a note of your processes before you depart, research on what systems you will need to replace (such as CRM systems, quoting software, and accounting tools), and begin drafting a business plan of how you will do it.

2. You’re Ready to Build and Own Your Book of Business

One of the biggest frustrations for captive agents is realizing that the book of business they worked so hard to build doesn’t actually belong to them. When you’re captive, the agency or carrier typically owns your clients and their policies, meaning that if you leave, you walk away from your revenue stream.

If that thought keeps you up at night, it’s a clear indicator that you’re ready for a change.

When you start your own insurance agency, you gain true ownership of your book of business. Every client you bring in belongs to you. Each renewal and referral will increase your long-term equity and residual income, which will exponentially increase with time.

Imagine that, in such a way, captive agents will rent their business; independent agents will own it.

Independent Agent Success Tip: Start preparing now by building strong client relationships that go beyond a single carrier. Educate your customers about the value you provide as an advisor, not just a policy salesperson. When you transition, those relationships will follow you more easily.

3. You’re Seeking Financial Freedom and Growth Potential

Let’s talk about the big motivator: financial freedom for insurance agents.

While captive agents might receive steady paychecks and bonuses, their earning potential is often capped. Independent agents, on the other hand, have nearly limitless income potential. You can negotiate higher commissions, work with multiple carriers, and scale your business without corporate limitations.

Naturally, with that freedom, you will have more responsibility to deal with, as you will have to pay yourself, and do all the marketing and lead generation yourself. The positive is gigantic, but the more laborious and intelligent you are, the more you earn.

Being a self-surviving insurance agent, it is entirely up to you to succeed. Most agents have reported that after the switch, their income has increased tremendously in the initial few years.

Pro Tip: Before leaving, build a savings cushion to support yourself through the first few months of transition. Next, establish achievable revenue targets during your first year of being an independent. It is a long race, not a short one, but it is a race that is worth running.

4. You’re Confident in Your Ability to Run a Business

There is more to being an insurance agent than selling, and starting your own insurance agency takes several business acumen, leadership skills, and multiple hats that one should be willing to wear. You will have to deal with operations, budgeting, compliance, and marketing, not to mention that you will still have to serve your customers.

Once you have acquired good time management skills and knowledge of your market, and you are at ease being more responsibility-driven, then you are likely to be able to become a self-sufficient insurance agent.

Being independent does not mean being lonely. Most successful agents enlist the services of aggregators, networks, or clusters that offer support, access to carriers, and training without loss of autonomy. You can also hire virtual assistants or partner with other independents to share resources.

Independent vs Captive Agent Insight:
Captive agents operate within a system that’s already built. Independent agents build the system — one that’s tailored to their strengths and values. If you’re ready to design your ideal business environment, it’s time to go independent.

5. You know where you want to be in the Future.

Lastly, clarity of vision is the best indicator that you are prepared to become an independent person. It is not the leaving behind you are doing but creating something new.

Are you aware of what sort of agency you want to operate? What markets do you desire to serve? What will your brand stand for? When you can confidently answer these questions, then you are prepared to begin creating your own book of business and developing a brand that is a reflection of you.

Being independent does not mean to get out of your imprisoning agency, but rather to enter into a position where you are in charge of your fate. You’ll face challenges, of course — but you’ll also enjoy the satisfaction of knowing every success is yours to celebrate.

Pro Tip- Plan on a one-page vision statement of your future agency. Clear up what you want to achieve, what your dream client is, and what success is to you. Such clarity will ensure you are on track throughout the transitio,n good and bad times.

The Guide to becoming an agent on your own: Step-by-step.

In the event you are nodding your head to these indicators, here are some of the roadmap tips on how to become an independent agent:

1. Do Your Research: Learn the differences in contracts, commission structures, and carrier access between captive and independent models.
   

2. Plan Financially: Save 3-6 months' living costs, estimate start-up costs, and estimate your income objectives.
   

3. Secure Carrier Appointments: Seek an approach to carriers or collaborate with an aggregator or network to acquire access to a multitude of lines of business.

4. Get Licensed and Legal: Make sure your state licenses, E&O insurance, and business registrations are up to date.
   

5. Invest Systems: Select CRM, quoting, and accounting software that simplifies your business.
   

6. Market Yourself: Develop a personal brand - site, social networking, and on the ground. Market the freedom and variety that you are now providing to clients.
   

7. Be Consistent: Concentrate on long-term growth and relationships. Your reputation is your greatest marketing weapon.

Final Thoughts: It’s Time to Bet on Yourself

Leaving a captive agency can feel intimidating, but it’s also one of the most empowering moves you can make as an insurance professional. You’ve gained valuable experience under the captive model — now it’s time to use that foundation to build something of your own.

Becoming an independent agent isn’t just a career change — it’s a mindset shift. It’s about believing in your ability to create, lead, and thrive on your own terms.

So, if you’ve recognized yourself in any of these five signs — if you crave more control, ownership, and financial growth — take it as your cue. The next step in your journey isn’t just about transitioning from captive to independent; it’s about transforming from an employee into an entrepreneur.

You’ve got the experience, the drive, and the vision. Now, it’s time to go independent — and finally become the self-sufficient insurance agent you were meant to be.