What is the captive agent?

An interesting agent is a fully licensed insurance agent that promotes only one insurance company offers. Capable agents may decide to function as independent agents or to be associated with an insurance company as a full -time employee. In both cases, the captured agent only sells the types of coverage offered by one insurance provider.

While a captured agent can be found as a full -time employee or as an independent supplier, captured agents are more commonly directly related to the insurance company. Together with the possibility to be an employee of a full -time company, insurance agents can decide to negotiate a work agreement that allows sufficient commissions on the sale of insurance policies provided by the insurance company. In return for an increased commission rate, the captured agent undertook only to represent the coverage offered by the insurance company. This is unlike the usual practice for independent agents who are often justified by writing for several different insurance companies.

One of the advantages of negotiations with a captured agent is that it will be very likely to understand every nuances of all kinds of coverage offered by a company. Since the agent does not process any other insurance companies, it is important that the agent is able to convince consumers that the company offers the best opportunities on the market. This can only happen if the agent has a comprehensive knowledge of what each level of offer will and will not provide in the way of coverage.

Insurance companies also benefit from agreements on captured agents, especially if they include independent suppliers. An independent agent will work on a commission, which means that the insurance company does not have to expand the salary package or benefits. In return, for a higher commission, the company has more people working in the Consumer Market to monitor a new business with a lower initial investment.