What system of insurance distribution utilizes producers to transact insurance?

The agency model is characterized by the use of producers, often referred to as agents, to transact insurance. In this model, agents represent insurance companies and are responsible for selling their policies to customers. They act as intermediaries between the insurer and the insured, providing valuable services such as policy recommendations, claims assistance, and ongoing support.

This model emphasizes personal interaction and relationship-building, allowing agents to understand their clients' needs and suggest appropriate coverage options. Producers in the agency model are typically compensated through commissions based on the policies they sell, aligning their interests with the insurance companies they represent.

The agency model is distinct from the direct sales model, where insurance is sold directly to consumers without intermediate agents. It is also different from an online marketplace, which is a platform for consumers to compare and purchase insurance policies without direct agent involvement. The brokerage system involves brokers who work on behalf of the customer to find the best insurance options, but they operate differently from agents in the agency model, who primarily represent the interests of the insurance companies.