Do you want to learn more about starting a career selling insurance with GEICO?
If you are trying to decide if working with GEICO selling insurance is a good idea, you’ve found the right article.
Let’s jump right in!
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GEICO stands for the Government Employees Insurance Company. The company was founded by Leo Goodwin Sr. and his wife Lillian Goodwin in 1936 to provide auto insurance to federal government employees as well as military personnel and their families.
In 1996, GEICO became a wholly-owned subsidiary of the American multinational conglomerate Berkshire Hathaway, led by Warren Buffett.
Today, GEICO is the second-largest auto insurer in the United States.
The company has headquarters in Chevy Chase, Maryland and regional offices in Texas, Florida, Georgia, California, Arizona, two in Virginia, and two in New York.
In addition to auto insurance, GEICO sells a wide range of insurance products including life insurance, homeowners and renters insurance, overseas insurance, business owners policy, identity protection, and numerous other insurance types.
However, GEICO doesn’t sell life insurance policies directly. Instead, its online life insurance platform directs clients to a life insurance agency called LifeQuotes, Inc. which is an internet-based insurance service.
LifeQuotes, Inc. offers term life insurance and whole life policies from more than 30 different insurance companies.
GEICO doesn’t sell its products through insurance brokerages or independent agencies, but only through their exclusive local agents.
The agents are not allowed to represent other insurance companies without the employer’s permission.
The majority of GEICO agents are already licensed before the application process. Those who are not licensed are required to complete licensing requirements. GEICO doesn’t offer an insurance licensing program itself.
GEICO agents are offered comprehensive education, paid training, and coaching that includes personalized feedback to allow agents to develop their selling skills. The company offers various possibilities for advancement and career growth.
Most GEICO life insurance policies are sold over the phone, but agents are not required to do cold calling.
They take incoming calls from prospective customers and provide personalized quotes, explain the benefits of being a GEICO policyholder, and answer customers’ questions as part of the selling process.
GEICO’s local agents are paid exclusively by new business and renewal business commissions for the insurance premiums they generate. Commission payments are made on a monthly basis through ACH transactions.
Moreover, GEICO sales agents are rewarded for good results. Top-performing agents earn monthly bonuses in addition to their base salary. The best selling agents earn on average two pay increases within the first year.
GEICO is not a scam but a well-established and reputable company with excellent financial ratings.
It holds a superior AA+ rating from both Standard and Poor’s and AM Best and an A+ rating from BBB. GEICO also has a high employee satisfaction rate.
GEICO is neither a multi-level marketing (MLM) business opportunity nor a pyramid scheme. This means that the company doesn’t have multiple layers of agents, mentors, and trainers and is not suitable for agents who are primarily looking to recruit.
Now that you know a little more about how Geico works, let’s talk about some of my thoughts as an experienced insurance agent since 2011.
One-Trick Pony Solution
A significant downside to working with one company is the absolute elimination of other alternative options that could better serve the client.
And while Geico is a great company, it won’t always offer the best underwriting terms or pricing plans for the client. This could cause your clients to look elsewhere for a better deal.
In return, your closing ratios will suffer, which is to be expected. Why would clients work with you if they can find a more competitive offer that suits their needs and budget elsewhere?
In this industry, we call agents in these positions “captive.” Captive agents are, as the name suggests, captive to one company and their products.
While working in a captive agency can have certain advantages regarding training and focus, there are significant drawbacks that will affect you and your clients.
Why I like being an independent agent
Consider going independent. Being an independent agent or a broker means you get to represent multiple companies and choose from a range of different products to find a policy that suits your client.
As an independent agent in the life insurance business myself, I found that I can close more deals and keep more of my clients on the books by having access to multiple carriers.
The end result is a happier client and more profitability for me too.
I hope you enjoyed this article and now understand a little more about how an insurance sales career with GEICO works.
If you’d like more information about how my organization works, click the link here.