Differences Among Traditional Insurance Marketing System

Type of marketing	What company or companies do the producer represent	Does the insurer employ the producers?	How are producers usually Compensated?	Does the Agency or Agent own the Expiration List?	What methods of sales are usually used?
Independent Agency System	Usually more than one insurer	No. The producers are employed by the agency	Sales commissions and contingent commissions	Usually Yes.	Personal Contact, Phone or internet.
Exclusive Agency System	Usually one insurer or group of related insurers	Usually No. However some producers begin as employees.	Sales Commissions and Bonus	Usually No. But the agency contract might provide for the agent’s right to sell the list to the insurer.	Personal contact, Phone or internet
Direct Writing System	Only the producer’s employer	Yes.	Salary, bonus, commissions or combinations	No.	Personal contact, Phone or internet
Direct Response System	Only the producer’s employer	Yes.	Salary	No.	Mail, Phone or internet

CHAPTER 4 - MARKETING