A broker in the context of insurance is a professional intermediary who represents individuals or businesses seeking to purchase insurance coverage. Unlike insurance agents who typically represent the interests of a specific insurance company, brokers act on behalf of the insurance buyer and are tasked with finding the most appropriate insurance policies for their clients’ needs at the most competitive price. Brokers have a deep understanding of the insurance market, the various products available, and the regulations that govern them.
They use their expertise to assess their clients’ individual risk profiles, advise on risk management strategies, and recommend suitable insurance products from a range of insurers. Brokers are responsible for facilitating the insurance transaction, which includes providing clients with a thorough comparison of policies, terms, and costs, as well as assisting with the completion of any necessary application forms.
Once coverage is secured, the broker’s role extends to providing ongoing support to the client. This includes interpreting policy terms, assisting with claims processing, and advocating on the client’s behalf with the insurer if disputes arise. Brokers are often compensated by receiving a commission from the insurance company for the policies they sell, though some may charge a fee for their services directly to the client. In all their activities, insurance brokers are bound by a duty of care to their clients and must act with integrity, ensuring that the advice and products they provide align with the client’s best interests.