What is a distinct difference between captive agents and independent agents?

Independent agents are indeed self-employed, which is a key distinction from captive agents. This independence allows them to represent multiple insurance companies and offer a variety of policies to their clients. They have the flexibility to select products from various insurers based on the needs of their clients, which can lead to a more tailored insurance solution.

On the other hand, captive agents work for a single insurance company and can only sell that company's products. This limits their ability to provide a diverse range of options. Therefore, the independence of self-employment is a defining characteristic of independent agents, setting them apart from their captive counterparts.

Understanding this difference is essential for recognizing the various roles within the insurance industry and how agents operate in relation to insurers and consumers.