How to Become an Independent Insurance Agent: Step-by-Step Guide

Are you ready to take control of your career and build your own insurance business? Becoming an independent insurance agent gives you the freedom to represent multiple carriers, set your own schedule, and grow a client base on your terms. At Brokers Alliance, we help new and experienced agents transition into independence with the support and resources they need.

Here’s everything you need to know to become an independent insurance agent in 2025.

Step 1: Understand the Role of an Independent Insurance Agent

Unlike captive agents who work for a single insurance company, independent agents can offer products from multiple insurers. This allows you to tailor coverage to fit your clients’ needs - and maximize your earning potential.

Key Benefits:

  • Access to multiple carriers and product lines

  • Higher commission flexibility

  • Greater control over marketing and branding

  • Freedom to build your own agency

Step 2: Meet State Licensing Requirements

Each state requires agents to be licensed to sell insurance products. Here's what the process generally involves:

  1. Choose Your Insurance Specialty: Life, health, property & casualty, etc.

  2. Complete Pre-Licensing Education: Most states require 20 - 40 hours of coursework.

  3. Pass the State Exam: Exams are administered through state insurance departments or testing vendors.

  4. Submit an Application and Background Check: A clean record speeds up the approval process.

  5. Obtain Your National Producer Number (NPN): This unique ID tracks your licensing status across states.

Tip: Brokers Alliance can connect you with trusted licensing providers and exam prep resources.

Step 3: Get Appointed with Insurance Carriers

Once you’re licensed, you’ll need to get appointed by insurance carriers to sell their products. Appointments allow you to quote and bind policies on behalf of the insurer.

What You’ll Need:

  • Active license and NPN

  • Errors & Omissions (E&O) insurance

  • Completed carrier application

  • Contracting through a trusted FMO / BGA like Brokers Alliance
     

Step 4: Choose the Right Field Marketing Organization (FMO / BGA)

Partnering with an FMO / BGA is crucial for independent success. An FMO / BGA provides tools, training, marketing support, and access to top-rated carriers.

Why Agents Choose Brokers Alliance:

  • Competitive commission structures

  • Lead generation tools

  • Training programs and webinars

  • Dedicated agent support team

  • Custom quoting platforms

Step 5: Build Your Book of Business

Marketing and client retention are key to long-term success. Start by identifying your niche and developing a strong local or digital presence.

Marketing Tips for New Agents:

  • Launch a professional website with SEO-optimized content

  • Use social media and paid ads to drive leads

  • Attend local networking events and business expos

  • Ask for referrals and maintain client relationships

Step 6: Stay Compliant and Continue Learning

Insurance laws and carrier requirements evolve. Stay on top of continuing education (CE) and renew your licenses on time.

Tools to Help:

  • CE tracking dashboards

  • Monthly compliance checklists

  • Access to new carrier trainings and updates via Brokers Alliance

Becoming an independent insurance agent is a rewarding career move for those who want autonomy, flexibility, and growth potential. With the right licenses, carrier appointments, and support from an experienced FMO like Brokers Alliance, you can start building your book of business with confidence.

Get Started Today