difference between and insurance company and agency
They both have the same licensing requirements required by the State(s) in which they transact business, but the big difference is who they work for. An insurance agent is an insurance companyâs representative and the agentâs primary alliance is with the insurance carrier (company), not the insurance buyer.
An insurance carrier such as; Travelers, Metlife, State Farm, Safeco, are where the company actual creates and manages the insurance products that they would like to sell. They control the underwriting, claims, pricing, and the overall guidance of the company. Letâs look at an example for each of these. If you were to buy an Ipad from Wal-Mart, then Wal-Mart would be the insurance agency and Apple would be the insurance carrier. Thus, Apple manufactures and creates the Ipad and Wal-Mart is where you buy them from but they also offer many other similar products to the Ipad.