Many people seem to use the terms “insurance agent” and “insurance broker” interchangeably. This can lead to a lot of confusion, as agents and brokers each play distinct roles in the insurance process.
In this post we’ll outline the key differences between insurance brokers and insurance agents, to help you make a more informed decision about your cover.
Anthony Jones is an independent insurance broker based offering insurance buying advice to both business and private customers. We welcome everyone, regardless of your size, sector, or circumstances. Find out how we can help you today.
What is an Insurance Agent?
An insurance agent will work on behalf of either a single insurer, or a number of insurers. Their role is to find new clients for these insurers, and they may even sell insurance products on their behalf.
Some agents are known as “captive agents”, meaning that they represent a single insurer. They may even be a full-time employee of this insurer’s sales department. Other agents are independent. They’ll work with a range of different insurers, meaning that they can offer potential customers a choice of cover options.
In any case, the insurance agent will have an agreement with every insurer they represent. This agreement will determine what types of insurance products they can sell, along with the commission the agent will receive for each sale.
Insurance agents may provide additional services after the sale. They may act as the policyholder’s point of contact throughout the policy period, and they may even manage claims on their behalf.
What is an Insurance Broker?
While insurance agents represent insurers, insurance brokers represent customers. Usually, an insurance broker will have professional relationships with a number of insurance companies, and they’ll receive a commission for every policy they sell. But they’ll act as an independent intermediary between insurers and customers, and they’ll work in the customer’s best interests.
Compared to insurance agents, insurance brokers tend to have a lot more freedom when it comes to the specific types of policies they can arrange. They can also help you compare quotes and policies from a number of different insurers.
As they have access to a wider insurance market, insurance brokers can help customers access niche or specialist cover. They can often tailor insurance packages to suit your specific requirements.
Insurance brokers can offer a range of additional services too. They can provide impartial advice, including risk management consultations, which could help you lower the cost of cover. And if you ever need to make a claim, insurance brokers can offer full support and advocacy services throughout the whole process.
What Are The Differences Between insurance Brokers and Insurance Agents?
The key differences between insurance brokers and agents are:
- Agents represent insurers. Brokers represent customers.
- Agents only work with their affiliated insurers, and they may represent a single insurer. Brokers have much wider market access.
- Agents may be required to favour their affiliated insurer’s products and services. Brokers can offer impartial advice and advocacy services, and they can help you get tailored and specialist insurance to meet your exact cover requirements.
- Agents may only offer limited claims support. Brokers can offer full support throughout the entire claims process.
- Agents can only ever offer fixed quotes from their affiliated insurers. Brokers may be able to negotiate better prices on your behalf, and they can also offer a range of competitive quotes to suit your needs.
Insurance Agent or Insurance Broker – Which Is Right For You?
An insurance agent can help you if you know exactly what sort of cover you need, or if you know exactly which insurer you want to work with. They can streamline the process of buying cover, and they may be able to help you get a good deal on your premiums. Agents can also act as your point of contact throughout the policy period, and they could help you update your cover if your situation changes.
Insurance brokers can help you if you have more niche or complex cover requirements. They have access to a wider market than insurance agents, so they can help you compare quotes from a number of providers. Brokers can also help you better understand your insurance requirements, and their impartial risk management advice could help you save money on the cost of cover. And if you ever need to make a claim, your insurance broker can support you at every step of the way.
Expert Insurance Broker Services From Anthony Jones
Anthony Jones is an independent insurance broker based offering insurance buying advice to both business and private customers. We welcome all, regardless of size, sector, or circumstance. Find out how we can help you today.
