What characterizes an exclusive/captive agent?

An exclusive or captive agent is characterized by their commitment to a single insurance company. This means they are employed by and represent one insurance carrier, which allows them to specialize in that company's products and services. This singular focus helps them develop in-depth knowledge about the insurer’s offerings, enabling them to provide tailored advice and support to clients looking for those specific products.

This model contrasts with independent agents, who have the flexibility to offer various products from multiple insurance carriers, allowing them to cater to a broader range of client needs. Captive agents may have a limited product lineup, focusing on the competitive advantages of their single insurer, but they can build strong relationships and expertise regarding their products.

Understanding this model is important for comprehending the structure of the insurance market and the roles that different types of agents play in serving clients.