What is the difference between working with a broker vs a captive insurance company?

Working with an insurance broker rather than a captive insurance company can offer a number of advantages. One of the main benefits of working with a broker is that they provide more options and flexibility. Insurance brokers represent multiple insurance companies and have access to a wide range of coverage options and pricing. This allows them to compare different policies and prices from multiple carriers, and find the best one that fits the client's needs and budget.
Another benefit of working with an insurance broker is that they can provide expert advice and guidance. Brokers are trained professionals who are knowledgeable about the insurance industry and can help clients understand the different types of coverage available and how to best protect their assets.

On the other hand, captive insurance companies, also known as "direct writers", only represent one insurance company. They only offer their own insurance products, which means that their clients have limited options and cannot compare different policies from different providers. They also may not have the same level of knowledge or expertise as a broker, as they are only familiar with their own company's products.

Working with a broker also allows clients to have a more personal relationship with their insurance provider. A broker will typically have a team of experienced professionals that clients can communicate with, and they will provide more personal attention and customer service. Captive insurance companies may have more automated systems and less direct communication with clients.

Finally, insurance brokers are required to act in their client's best interest and must disclose any potential conflicts of interest, while captive insurance companies may have more leeway to prioritize their own financial gain over the client's.
In summary, working with an insurance broker offers clients more options, flexibility, expert advice, personal attention, and protection of their best interest. It is a good choice for clients who value these attributes in their insurance providers.