What is the difference between independent and captive insurance companies?

Independent insurance companies are businesses that are not owned or controlled by any other company. They are regulated by state laws and can offer products from many different companies. They are generally free to set their own prices and determine their own policies. Independent companies work with multiple insurance companies to find the best coverage and rate for their clients. Captive insurance companies, on the other hand, are owned or controlled by another organization. In the case of New York State, captive insurance companies are regulated by the New York State Department of Financial Services. They are typically owned by either a financial institution or a parent company, and are limited to offering only their own products and services. Captive companies are designed to provide a benefit to the parent company or financial institution, usually in the form of a reduced cost of insurance products. The main difference between independent and captive insurance companies is the degree of control and the breadth of services offered. Independent insurance companies are free to offer a variety of products from many different companies, giving them the freedom to tailor a policy to a customer’s needs. Captive insurance companies, on the other hand, are limited to offering only their own products and services, and are typically geared towards providing a benefit to the parent company or financial institution.

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What is the difference between independent and captive insurance companies?

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