An Experienced Agent’s Journey: From Captive to Commercial Lines

When Rachel McRee started the McRee Agency in 2023, she had ample insurance experience – but not as an independent agent. With network support and a strategy that focuses on commercial lines, she quickly found her footing.

From the Captive Insurance Trenches

Rachel started working in the insurance industry when she was just 18 years old. She got a job at State Farm, where her mother was working, and ended up staying there for roughly nine years – not just as an agent, but also as an employee in the corporate office.

She then worked as a captive agent for Alfa Insurance before accepting a role in their corporate office. After experiencing both sides of the insurance industry, she knew what she preferred. “I did not love the corporate world as much as I loved being an agent out in the field,” she says.

From there, she went to MetLife, which was eventually bought out by Farmers. “I decided to sell my Farmers book when I was contractually able to do so,” she says.

“I wanted to go independent.”

Navigating a Noncompete

By the time Rachel decided to go independent in 2023, she had years of experience in multiple roles in the insurance industry. However, she didn’t have any experience as an independent agent. She knew that she was entering a hard market that had been made worse by the COVID-19 pandemic. To be successful, she needed a winning strategy.

“I decided that while I was navigating a noncompete, I would focus solely on commercial, and market it heavily,” she explains.

To build a commercial book, she needed network support and carrier access. “There are so many contracts out there, it’s almost mind-blowing,” she says. At first, the options seemed overwhelming, but once she made a list of everything she wanted, one option stood out as the top choice.

“To me, Smart Choice was the most helpful. They allowed me to own my own book, and the fees were not huge. That’s why I went with them, and I’m glad I did, because it’s been a wonderful experience so far, and I really appreciate the help that I get with them,” she says.

Overcoming Challenges

Despite all her insurance industry experience, going independent has been a tremendous change. “I’ve stumbled a few times, but it’s been exciting,” Rachel says.

Her biggest challenge has been on the operations side. “That is all new for me, even though I’ve been in the business for 25 years,” she says. “I’ve had to navigate a few different payment processing hurdles because, in the commercial world, if you go surplus lines, it’s agency billed, which is something that is new for me.”

Having network support has helped. “Smart Choice has really helped me with questions,” she says, explaining that she can call whenever she needs guidance about where to place a particular account.

Network support has also been critical for securing carrier access. “They have a lot of the carriers that I need, from a traditional insurance standpoint. They also have a surplus wholesaler that I am now partnered with,” she says.

The Upsides of a Commercial Strategy

Rachel’s strategy focuses on commercial lines – because of her noncompete and because it makes good business sense.

She’s found that when you serve individuals, you have to write a lot of policies. “Personal insurance is a numbers game,” she says, explaining that this can be difficult in a hard market when carriers have reached their capacity. “Your hands get tied very quickly.”

She’s enjoying the new challenge of helping business leaders. “I like the detail of commercial lines. You really get to know your clients. You talk to them, learn about their business, and understand their needs. The premiums are much larger, so you don’t have to write as many commercial policies as you do for personal lines to have the same premium growth within your agency,” she explains.

To navigate market changes, she’s carefully walking a fine line between specialization and diversification. “You don’t want to diversify yourself so much as an agent that you’re no longer good at your job,” she says.

Looking Forward

Rachel’s new clients haven’t hit their one-year renewals yet. However, she’s not worried about losing business. If one carrier doesn’t pan out, she can provide alternatives – something she couldn’t do as a captive agent.

“My retention should be strong because we have so many outlets where I can place the business. We have a lot of carriers,” she says. “In the independent space, I’m like, okay, this one’s out, let’s go to these 15 and see what that looks like. So, I think my retention will be good.”