In the world of insurance, the terminology can be as confusing as the fine print. You see ads for direct writers, agents, and brokers, all promising the best protection for your home, car, or business. But are they the same? The short answer is no. The difference isn’t just lingo; it determines whose side the professional is on when you buy a policy, and more importantly, when you have a claim.
This guide breaks down the three main ways to buy insurance in Ontario and why partnering with an independent broker puts the power back in your hands.
What is a Direct Writer?
A direct writer is an insurance company that sells its own products directly to consumers, typically online or via a call centre, without an intermediary. When you call a direct writer (like Belair or TD), you are speaking to an employee of that specific company who can only offer you their own proprietary products.
Direct writers are often the “big box” stores of the insurance world. Their model is built on volume and speed, often focusing on “instant” policies.
While convenient, the person on the phone works for the insurance company, not you. Their goal is to sell their employer’s policy, and they cannot shop around to see if another company offers better rates or coverage for your specific situation.
What is an Insurance Agent?
An insurance agent, often called a captive agent, is a representative who is contractually tied to sell the products of one specific insurance company. While they may have a local office and offer face-to-face service, they are also limited to the coverage options and pricing of the single insurer they represent.
Think of a captive agent like a car dealership that only sells one brand. If you walk into a Ford dealership, the salesperson won’t tell you that a Toyota might be a better fit for your commute. Similarly, an insurance agent can only offer you the “menu” provided by their parent company. If your premiums go up, they can’t shop the market to find you a better deal elsewhere; their loyalty ultimately lies with the company that employs them.
What is an Independent Insurance Broker?
An independent insurance broker is a licensed professional who works for you, the client, rather than for any specific insurance company. Brokers have access to multiple insurance providers (such as Intact, Aviva, and Gore) and shop the entire market to find the best coverage and competitive rates tailored to your unique needs.
This is the ONA difference. As an independent brokerage, we are 100% independent. We act as intermediaries between you and the insurance companies. Our job is to assess your risk, shop different providers on your behalf, and present you with the best options. We don’t just process a renewal; we review it to ensure it still fits your life. Most importantly, because we aren’t tied to one insurer, our loyalty lies with you to ensure your interests are protected, especially during claims.
Comparison: Broker vs. Agent vs. Direct Writer
To help you decide, here is a quick comparison of how these three models stack up regarding choice, advice, and advocacy.
| Feature | Direct Writer | Captive Agent | Independent Broker (ONA) |
| Who Do They Work For | The Insurance Company | The Insurance Company | You (The client) |
| Choice of Insurers | None (Only 1 company) | None (Only 1 company) | Multiple (Intact, Aviva, Gore, etc.) |
| Claims Advocacy | Company adjuster | Limited | Full advocacy (We fight for you) |
| Relationship | Transactional / Call centre | Face-to-face | Personal |
| Independence | No | No | 100% Independent |
Why “Shopping the Market” Matters for Your Wallet
One of the biggest misconceptions is that going direct is always cheaper. In reality, rates are filed with regulators, and no single company is the cheapest for everyone. Insurance rates fluctuate based on market conditions, and one insurer might be competitive for young drivers while another offers better rates for retirees or high-value homes.
Because ONA is not tied to one specific shareholder or company, we shop multiple markets for you. If one insurer raises their rates significantly, we can move your policy to another provider that offers a more competitive rate for the same coverage. You get the peace of mind of knowing you always have the best value without having to call ten different companies yourself.
The “Real People” Advantage: Local Support in Ottawa
Insurance is more than just a piece of paper; it’s a safety net for when things go wrong. When you work with a direct writer, you are often just a policy number in a database. At ONA, you deal with a broker who knows your name.
With five local offices in Ottawa, Manotick, Almonte, Russell, and Orleans, we offer a physical presence that is rare in modern insurance. This local knowledge matters. We understand the specific risks of our region, from common coverage to the unique needs of the cross-border workforce commuting between Gatineau and Ottawa. If a disaster happens, we are your first call. We don’t just sell the policy; we fight for you during a claim.
Frequently Asked Questions (FAQ)
Is it more expensive to use an insurance broker?
No, using an insurance broker typically does not cost you more. In fact, brokers often save you money by shopping multiple insurance markets to find the most competitive rate for your specific profile. We focus on finding the best value, ensuring you aren’t paying for coverage you don’t need.
How are insurance brokers paid?
Insurance brokers are paid a commission by the insurance company that you choose to place your policy with. At ONA, we believe in full transparency and provide a commission disclosure to show we have nothing to hide. This structure allows us to offer you unbiased advice without charging you direct service fees.
Who should I call first when I have a home insurance claim, my broker or the insurance company?
You should call your broker first. We can review the damage, explain the implications of filing a claim (such as potential premium increases), and guide you on the best course of action.
Is it cheaper to buy home insurance through an independent broker or directly from an insurance company?
Direct writers are not inherently cheaper. Brokers often save you money by shopping your profile across multiple insurers to find the most competitive rate. Additionally, brokers prevent you from overpaying for unnecessary coverage or under-insuring your home, which can cost you more in the long run.
What is the difference between an insurance broker and an insurance agent?
An insurance broker represents you (the client) and can shop for policies from multiple different insurance companies to find the best fit. An insurance agent works for one specific insurance company and can only sell that company’s products, limiting your options for coverage and price.
Choosing between an insurance broker, agent, or company comes down to who you want in your corner. With over 60 years of experience, Oegema, Nicholson & Associates offers the stability of a large firm with the empathy of a good neighbour. We work for you, not the insurance companies, ensuring you get real advice and proper protection.
Ready to see the difference an independent broker can make?
- Request a Free Quote
- Contact your local broker today for a policy review.
