What does a captive agent represent in the insurance market?

A captive agent represents only one insurance company in the market. This means they are dedicated to selling products and services from that specific insurer. Because of this arrangement, captive agents often have a thorough understanding of the company’s offerings and policies, allowing them to provide tailored advice and support to clients based on the single insurer's products. This focus enables them to build strong relationships with clients who seek assurance that they are receiving consistent information and service aligned with the insurer's specific guidelines and offerings.

In contrast, agents with multiple agency agreements serve several insurers, giving clients a range of options. Independent agents represent various companies and can sell products from multiple insurers, allowing for broader market coverage and more choices for clients. Agents who represent a group of insurers typically work with a selection of companies but are not limited to a single insurer, further distinguishing them from captive agents.