What defines a direct writer in insurance?

In the context of insurance, a direct writer refers to agents who sell policies directly from the insurer to the consumers. This model allows insurance companies to eliminate intermediaries, such as independent agents or brokers, thus establishing a direct relationship with policyholders. By selling directly, insurers can offer more competitive pricing and streamline the purchasing process.

This approach also often facilitates better customer service since the company is directly responsible for interaction and support. As a direct writer, the agent typically represents only one insurance company and has a vested interest in selling the company's products. This is distinct from other roles in the insurance industry, where agents might work with multiple insurance carriers or operate through various platforms.