How do independent agents differ from captive agents?

Independent agents are characterized by their ability to represent multiple insurers, which allows them considerable flexibility in finding the best insurance solutions for their clients. They can compare policies and coverage options from several different companies, which can result in more competitive pricing and a wider selection of policies tailored to the individual needs of their clients. This independence is a key advantage, as it enables agents to advocate for the best interests of their clients without being limited to the offerings of a single insurance provider.

Captive agents, on the other hand, are typically contracted to work for one specific insurer, which restricts them to selling that company's products only. This can limit the options available to clients who might benefit from a broader array of coverage possibilities that independent agents can provide.

The educational requirements for agents can vary, but both independent and captive agents must meet certain licensing criteria. However, it is not a defining factor that distinguishes them, and the assumption that captive agents generally have more educational requirements may not be accurate across the board.

Ultimately, the key differentiating feature lies in the representation; independent agents' ability to collaborate with multiple insurers is what sets them apart from captive agents.