Which feature would you expect in a direct writer model?

Which feature would you expect in a direct writer model?

• A. The insurer relies on an extensive network of independent agents to sell policies.
• B. The insurer employs its own sales staff.
• C. Branding is controlled by independent agents.
• D. Licensing is never required.

Answer: (B)

Direct writer models sell directly to customers through the insurer’s own sales staff, rather than through independent agents. This setup means the company controls the sales process, branding, and how policies are sold, typically using salaried employees or captive agents who work exclusively for the insurer. Because of that direct control, the insurer can ensure a consistent customer experience and messaging across all channels. The other described features align with different distribution models. Relying on a large network of independent agents is characteristic of an agency system, not a direct writer. Letting independent agents control branding also fits an agency model, where agents carry much of the brand identity. Licensing is required to sell insurance in most jurisdictions, so saying licensing is never required is incorrect.

Direct writer models sell directly to customers through the insurer’s own sales staff, rather than through independent agents. This setup means the company controls the sales process, branding, and how policies are sold, typically using salaried employees or captive agents who work exclusively for the insurer. Because of that direct control, the insurer can ensure a consistent customer experience and messaging across all channels.

The other described features align with different distribution models. Relying on a large network of independent agents is characteristic of an agency system, not a direct writer. Letting independent agents control branding also fits an agency model, where agents carry much of the brand identity. Licensing is required to sell insurance in most jurisdictions, so saying licensing is never required is incorrect.