Captive Agent
What Does Captive Agent Mean?
A captive agent is an insurance agent who sells insurance products exclusively for one company, rather than representing multiple companies. While captive agents are not always employees of the insurance company, they may be. They are typically compensated through a combination of salary, commissions, or both, depending on the agreement with the insurer.
Insuranceopedia Explains Captive Agent
Captive agents are an alternative to independent agents. Independent agents work as contractors for multiple insurance companies and are not limited to representing just one. The terms of the agreement between a captive agent and the insurance company can vary, with details such as benefits and compensation depending on the specific company. Insurance companies often prefer captive agents because they focus exclusively on one company and do not support the competition, ensuring loyalty and dedication to promoting their products.
