What defines a captive agent in the insurance industry?

A captive agent in the insurance industry is defined as an agent who represents only one insurance company. This specialization allows the agent to focus deeply on the offerings and policies of that single insurer, enabling them to develop a thorough understanding of the products they sell. Captive agents often work closely with the company to promote its brand and are typically compensated via commissions based on the policies they sell.

Captive agents have the advantage of being able to provide expert knowledge on their company's specific insurance products, which can enhance the customer experience as they can offer tailored advice and support. In contrast, other types of agents may represent multiple companies or may be independent brokers who can offer a wider range of products from various insurers but may lack the in-depth focus on any one company's offerings. This distinction underlines the unique role captive agents play in the insurance marketplace.