Who is a captive agent?
Who is Captive Agent. A captive agent is an insurance agent who only works for one insurance company. A captive agent is paid by that one company, either with a combination of salary and commissions or with just commissions.
What are the benefits of a captive insurance company?
The insured in a captive insurance company not only has ownership in and control of the company but also benefits from its profitability. A policyholder in a mutual insurance company is theoretically entitled to receive dividends if the company makes a profit.
What is the difference between captive and independent insurance agents?
Insurance agents can choose to be either captive agents or independent agents. Captive agents work for only one insurance company whereas an independent agent does not work for any particular insurance company but rather can sell policies from an array of companies.