Direct Writer
What Does Direct Writer Mean?
A direct writer refers to an insurance company that issues insurance policies exclusively written and serviced by its employees or contracted subcontractors. Additionally, the term can also refer to an insurance agent who only issues policies from a single insurance company. Unlike insurance brokerage firms, which typically offer clients a variety of insurance products from multiple companies, direct writers only provide insurance products offered by their own company or, in the case of an agent, from a single insurance company.
A direct writer is also known as a captive agent.
Insuranceopedia Explains Direct Writer
Direct writers typically refer to insurance companies that do not have independent representatives selling or writing their policies. When policyholders need to file a claim or require any service, they contact the insurance company directly, and the company’s employees handle the servicing of the policies.
In this context, direct writers also refer to the employees of an insurance company. In contrast, independent agents are usually self-employed individuals who offer a variety of insurance products from different insurance companies. These agents sell insurance policies and earn commissions on their sales.
It is important to note that clients working with direct writers might not always receive the best deal. However, if these clients purchase all their insurance policies from the same direct writer, they may be eligible for a valuable multiline discount.
