Which system employs producers that represent multiple insurance companies and manage their own business?

The independent agency system is characterized by producers, or agents, who represent multiple insurance companies rather than being tied to a single one. This gives them the flexibility to offer a variety of products from different insurers to their clients, allowing for better customization based on the individual needs and preferences of consumers.

In this system, agents typically manage their own business, which means they have the autonomy to develop their client base, set their own processes, and determine how they market their services. This independence allows for a more personalized approach, enabling agents to provide clients with the best options available in the market according to their unique circumstances.

In contrast, the captive agency system restricts agents to representing only one insurance company, limiting their product offerings. The direct writer system involves companies employing their own agents to sell insurance solely for that company, eliminating the variety found in independent agents. The bancassurance model integrates banking and insurance services, where banks sell insurance products alongside traditional banking offerings, which is a different operational structure entirely. Therefore, the independent agency system is distinct in its representation of multiple insurance companies and management of independent business operations, making it the correct choice.