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Generally speaking, agents work as salespeople on behalf of specific insurance companies, while brokers offer more generalized insurance services to consumers, in relation to agents, insurers, and underwriters.
Compare and contrast the differences between an insurance agent and a broker to determine if one is better suited than the other for your needs.
Insurance agents represent specific insurance companies and sell their policies, while insurance brokers work independently, offering policies from various insurers. Agents are insurer-oriented, while brokers are client-oriented.
Explore the main differences between the role of an insurance broker and an insurance agent to decide which role better fits your experience and skills.
Agents typically represent one or more insurance companies. Brokers, however, work independently and represent the buyer’s interests. Despite these differences, both must comply with state regulations. Licensing ensures that agents and brokers have the necessary qualifications to sell insurance.
An insurance agent works for an insurance company, while an insurance broker works for a client. Both agents and brokers can help with multiple types of insurance, including auto insurance, health insurance and more. Choosing between an agent and a broker will depend on your individual needs.
Independent agents. Because independent agents work for multiple insurers, they can offer consumers a wider variety of policies. Additionally, they: Operate as an independent business, meaning they are responsible for paying the overhead costs associated with this line of work.
Both insurance brokers and agents can help you obtain insurance but a broker will primarily represent you in the insurance shopping process, while an agent will primarily represent the insurance company you buy coverage from.
Objectivity. Insurance agents act as representatives of their affiliated company and are driven by the interests of that company. Their primary goal is to sell policies from their insurer to clients. While they provide valuable guidance and support, their recommendations may be influenced by their company’s offerings and incentives.
We’ve already touched on the majority of the major differences between insurance agents and insurance brokers while explaining what each type of insurance professional does, but let’s recap some of the key differences: Agents represent insurance companies. Brokers represent their clients.