An insurance company that does not work through the independent insurance agent system. Agents who work for direct writers are employees of the insurance company.
The insurance term "direct writer" refers to any insurance company who sells their insurance products through their own captive insurance agents. Agents who sell insurance products offered by direct writing insurance companies are not independent agents, they are employees of the direct writing insurance company. Just like most things in life there are good things and bad things when it comes to working with a Direct Writing Insurance Company. We've listed out a few of those below.
Good things about Direct Writers:
Most direct writing insurance companies have excellent in-house training programs for their employees. Subsequently, agents who work for direct writers are very familiar with their insurance products and services;
In general, direct writers offer standard insurance products that may include personal auto insurance, homeowners, business owners policies and less complicated commercial insurance. You'll find they typically provide insurance for the general public, either personal lines insurance or light commercial lines.
Some of the largest, most recognized insurance companies are direct writers. Many of these companies compete for your insurance business on a head to head basis. They're easy to find....just pay attention to the next tv commercial!
Bad things about Direct Writers:
Because they only sell the insurance products they produce they are naturally limited in the scope and range of potential clients. Simply, a direct writer may not be able to provide all the different types of insurance coverage a specific client may need.
Because of the product lines and the limits found within these product lines, their financial performance may be limited.
As a consumer or insurance client you may not be able to find the type of coverage you require in order to protect your individual company from risk and may need to seek insurance coverage from other sources.
So is a direct writing insurance company for you? Maybe...but we can't answer that question here! It really depends on your specific needs and insurance requirements.