For Commercial insurance buyers comparing distribution models
Insurance broker vs. captive agent
How market access, representation, underwriting authority, and policy issuance differ.
Different access models
A captive agent generally represents one insurer or affiliated group. An independent agent or broker may work with several carriers and wholesale markets, subject to licensing, appointment, access, geography, risk eligibility, and underwriting.
The carrier underwrites
A broker organizes the risk, approaches appropriate insurance markets, presents terms, and helps the client through the process. The insurer or authorized market makes the underwriting and claim decisions.
Questions worth asking
- Which markets are available for this risk?
- Is access direct or through a wholesale intermediary?
- What information is still missing?
- How do the proposed terms differ beyond price?
- Who handles certificates, billing, claims assistance, and renewal preparation?
No model guarantees the lowest price
Insurance terms depend on the risk and market. The useful comparison is the available policy structure, insurer, service, exclusions, deductibles, limits, and premium—not a promise that one distribution model always wins.