Insurance Agency Types
Captive
vs.
Semi-Independent
vs.
Independent
Please explain the different types of insurance agencies: Most insurance agencies fit
into one of three categories; captive, semi-independent and independent.
Captive insurance agencies typically only offer coverage through a single insurance company. These agencies will sometimes offer sub-standard coverage through other companies, but are required to give their primary company first choice for each and every opportunity.
Semi-Independent insurance agencies in many cases will call themselves “independent” however the difference lies in the percentage of policies they will place with a single insurance company. Semi-independents are able to appoint with any insurance companies they choose, but are required (or voluntarily choose) to place a
specific volume or percentage with a single company. This is why many “so-called independent” insurance agencies write an overwhelmingly majority percentage of policies with a single company.
Independent insurance agencies are truly independent and will place policies where it makes the most sense for each individual or commercial client. Truly independent agencies may place business somewhat equally among 6, 8, 10 or even 20 or more different companies. Advanced technology subscriptions allow for independent
agencies to more easily shop among multiple companies all at the same time. With this convenience, data entry times are drastically reduced allowing for easier methods of finding client value.
How do I know if an agency is truly independent? Just ask. Simply ask if they lead with any one company with most of their policies or if they always shop among dozens of companies all-at-once. Creekside Insurance Advisors Inc. is truly independent and utilizes product-specific, quote engine technology to shop home, auto, Medicare products, life insurance, long term care insurance and annuities.
