top of page
  • Writer's pictureRobert DiCristofaro

One Hit Wonders! A Gilded Cage is still a Cage.

Why you should think about ditching your Captive Agent and start working with a Independent Insurance Agent or Broker.

A gilded cage is still a cage.

What is a Captive Agent? A Captive Agent is an agent that has contracted with only one company like [insert corporate name here], and can not work with any other Insurance Company in the industry. They are easy to recognize because they have their captor's logo all over their walls, pamphlets, and on the sign over their door. Captive Agents typically only have one policy to offer for each of the things they cover ie. 1home owners, 1renters, 1auto, 1business... Also, Captive Agents are expensive for Insurance companies to retain; which they may pass on to the consumer in the form of higher rates. Met Life got rid of all of their captive agents in 2016, opting to focus on product and many companies are expected to follow suit.

I was astounded to see how much money the policy's captive agents wrote cost the people who are now my clients. We see it all the time... a person comes in and asks if we can beat ____________'s rates for the same coverage, and with out hesitation I say "usually!". The Power of an Independent agent lies in their ability to shop around for the best prices. A Captive agent could have a better rate, but they can only quote 1 carrier where an independent agent can offer a range of quotes with multiple companies. When the Insurance Companies compete for your business you win!

We at 1st Cannon, like many people, value our independence! We will never become captive agents, but that does not mean we offer substandard companies. We work with many well known companies, and while there are a few you haven't heard, we would never put any of our clients with a company that we didn't trust.

The PA department of insurance would not let you work with a subpar Insurance company either; they thoroughly vet every insurer before admitting them and allowing them to conduct business in Pennsylvania. There are strict requirements that every admitted insurer has to follow in order to do business in the state of PA.

Neither I, nor the staff at 1st Cannon, would place any client with a carrier that we were not completely confident in, and we will always work to find you excelent coverage at great prices!

126 views0 comments
bottom of page