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Who is a Captive Agent?

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Captive Agent

A Captive Agent is an insurance agent who works for only one insurance company. He or she is paid the salary and the commission only by the company they work for. One is supposed to learn a single company’s policies, products and guidelines. This Agent has full knowledge about a company’s insurance products. He may be given an office space and other benefits by the employer and may be an independent contractor or a full time employee.

Advantages of being a Captive Agent

The most important advantage of being a Captive Agent is that, you do not have to do your own marketing and advertising as you already have the benefit of working under a recognized brand. Also, it is more certain that you will have a reliable compensation such as commission, sales bonus, salary and other benefits as per your performance.

Disadvantages of being a Captive Agent

The worst part of being a Captive Agent is that you have to convince the customers to buy the product, even if the product is suitable or not. This is because you represent a particular company and you have no option but to do as suggested. Also, if your company stops selling a product, you have to stop selling it too.

Your desire of becoming a Captivee agent solely depends on your needs and choice.

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Parul Mahajan is a Post Graduate in Gender Studies from Ambedkar University, Delhi and also holds a Bachelor of Arts degree in English Literature from Daulat Ram College, Delhi University. She is the author of ““Warring Over Religion and Feminism”, a Masters level Dissertation. Parul has also interned with Vimochana, a Bangalore based women’s organization working on various women’s issues.

5 COMMENTS

  1. I knew nothing about a captive agent. But, after reading this article, I must confess that I learnt a lot about the term ‘Captive Agent.’ The best part of the article is the sequence which is maintained in the article that makes it easy for me to grasp the concept. I liked the article.

  2. Hi Parul,
    ‘Captive agent’ a topic which we normally don’t find in a finance related topics. I really appreciate that you took time to write on this topic, now people will understand the difference about a normal agent and the captive agent. the best part of the article is where you mentioned the advantage and the disadvantage of these agent.

  3. I always thought that insurance agents were the only people selling company policies. Captive agents are also engaged by a specific company to only sell their policies. The article is short and crisp and provides both the advantages and disadvantage of being a captive agent.

  4. The term “captive agent ” was explained by a friend to me a few days ago but he made it very confusuing for me to understand. this article, on the other hand, is simple, to the point and well explained. There are advantages of being a captive agent but it restricts an agents independence which i’m not sure is a good thing.

  5. Basically is just another fulltime job behind the desk. If you are the person for a job like this, then go for it. Definitely a job worth reconsidering for a person with good communication skills. Personally I found these jobs the hardest. Dealing with people can be very tiresome and demanding.

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