What is a Captive Agent?
A captive agent is an insurance professional employed by a single insurance company to sell its products. Unlike independent agents who represent multiple insurers, captive agents focus on providing policies solely from the company they work for. This allows them to develop in-depth knowledge of that company’s specific policies, discounts, and claims processes, providing tailored advice to customers.
In personal and business insurance, captive agents play a significant role by offering homeowners, car, and property insurance products. For instance, if you’re looking for homeowners insurance, a captive agent can offer detailed information on the specific coverages, endorsements, and benefits their company provides, ensuring you receive the best possible policy within that insurer’s portfolio.
Captive agents often have access to extensive training and support from their insurance company, which helps them stay updated on the latest product changes and underwriting guidelines. However, because they can only sell their company’s products, they may not always offer the most competitive rates or coverage options compared to independent agents.
While captive agents provide expert knowledge about their company’s insurance offerings, customers may want to consider the limitations, such as the inability to directly compare policies from different insurers.