Agent? Broker? Producer? What’s the difference? This can sometimes be difficult to wrap your head around, since the terminology for insurance professionals is not static. It can change over time and differ depending on the source, something to keep in mind when reviewing this blog.
Independent Agent
Independent agents have access to multiple insurance companies, and have contracts with many of those insurers that give them binding authority. It is a common misconception that independent agents will shop and offer all available options, either when starting or renewing a policy. Instead, they may only offer select options due to time constraints, underwriting guidelines, coverages offered, compensation, and how easy the insurer is to work with. They generally will only shop an insurance policy at renewal by request. Independent agents do not have access to insurance products offered by exclusive agents.
Insurance Broker
Much like independent agents, insurance brokers have access to multiple insurance carriers. However, unlike independent agents, insurance brokers do not have binding authority. Therefore it can take longer to bind a policy, and there are often additional steps involved. Some insurance wholesalers are insurance brokers.
Exclusive Agent
Exclusive agents, also known as captive agents, primarily work with one insurance company. The advantage is that they know that insurer’s guidelines, practices, and representatives intimately, and are typically better able to service and advocate for their customers. Some insurance carriers allow their exclusive agents to work with other insurers, thereby offering the best of both worlds.
Insurance Wholesaler
Insurance wholesalers work as an intermediary between the insurance company and the insurance agent, typically for unique insurance risks that cannot be placed with a name-brand insurance carrier. It is often the non-admitted, excess/surplus lines insurers that work through insurance wholesalers. If they do not have binding authority, they are referred to as a “broker”.
Direct Sales Agents
Direct sales agents work with one insurance carrier, and are employees of that carrier. If you call an 800 number, you are often working with a direct sales agent. These agents usually work in call centers, and typically will not be involved in servicing your policy after the sale.
Insurance Producer
In general, insurance producers work for insurance agencies selling policies. However some insurance regulatory agencies are using the term “insurance producer” as a catch-all for insurance agents and the like.
Insurance Customer Service Representative
Customer service representatives (CSR’s) service insurance policies; generally personal insurance policies such as auto insurance and home insurance.
Insurance Account Manager
Account managers service and renew business insurance policies.
Contact Chris Elliott Insurance Agency!
Our Seattle insurance agency can access multiple insurance companies, in addition to one carrier that independent agents cannot access. Contact our team today!
