What distribution system involves agents working independently with multiple insurers?

The concept of independent agents revolves around their ability to represent multiple insurance companies simultaneously. This affiliation allows them to offer a diverse range of insurance products tailored to meet the specific needs and preferences of their clients. Independent agents work on a commission basis and have the flexibility to shop around various carriers for the best policies, coverage options, and pricing that suit their customers. This system empowers clients by providing them with more choices and personalized service.

In contrast, captive agents work exclusively for one insurance company and can only sell that company's products, limiting the options they can offer to customers. Direct writers are insurers that sell policies directly to consumers without agents, and direct response agents operate by marketing products typically through television or online platforms, again lacking the multifaceted selection of options that independent agents provide. Thus, the independent agency model is characterized by its independence and broad representation, making it a distinct distribution system in the insurance industry.