In which system are the insurance company's agents considered employees?

The Direct Writer System is characterized by the close relationship between the insurance company and its agents, where the agents operate under the company’s brand and are often treated as employees rather than independent contractors. In this system, agents generally work exclusively for one insurance company and have a more structured role, receiving salaries or commissions through direct employment agreements, which aligns them closely with the company’s goals and practices.

This setup contrasts with other systems. For example, in the Agency System, agents may represent multiple companies and function as independent businesses rather than being employees of any single insurer. Similarly, in the Brokerage System, brokers work on behalf of clients, not as employees of insurers, facilitating the insurance purchase process without direct ties to a specific provider. The Direct Response System involves selling policies directly to consumers without agents, further separating any employment relationship from an insurance company.

The unique aspect of the Direct Writer System is its integration of agents as company employees, which leads to a more consistent branding and customer experience, as well as potentially higher levels of loyalty and training standardization among agents.