What is the difference between independent and captive insurance agents?

Independent and captive insurance agents are two types of professionals in the insurance industry. Independent agents represent multiple insurance companies, while captive agents are contracted to represent one specific company. Independent agents are typically self-employed and have the ability to compare costs and coverage between multiple insurance carriers to find the best policy for customers. They usually represent several insurance companies and offer different lines of personal, commercial, and life insurance products. Once a customer purchases a policy, the independent agent is paid a commission by the insurance company. Captive insurance agents work exclusively with one insurance provider. They offer a limited number of insurance products and usually only represent the products of the one insurance company they are contracted with. Captive agents may focus on one line of insurance products, such as auto insurance or health insurance. The insurance company pays the captive agent a commission for each policy sold. In Pennsylvania, both independent and captive agents must be licensed by the Pennsylvania Department of Insurance. Both types of agents must meet minimum requirements established by the department in order to be issued a license and provide insurance services.

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What is the difference between independent and captive insurance agents?

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