What is a "direct writer" in insurance?

A "direct writer" in insurance refers to an insurer that employs its own salespeople to sell its products directly to consumers. This model allows the insurance company to maintain control over the sales process and build a direct relationship with its customers. The salespeople are not independent agents; they are employees of the insurer, which means they focus exclusively on selling that company's policies and are trained to understand and promote the specific products and services offered.

This approach can lead to more streamlined operations since the insurer can directly manage its sales force and ensure that they adhere to company policies and procedures. It contrasts with independent agents, who represent multiple insurers and may offer a broader range of policy options to clients but work on a commission basis for each sale they facilitate.

The other options do not accurately describe what a "direct writer" is: an independent agent typically represents multiple insurers, a contractor who writes insurance policies does not fit the standard definition of a direct writer, and operating exclusively online does not inherently mean the insurer is employing their own salespeople.