What is the difference between an insurance agent and a broker?

The difference between an insurance agent and a broker is in the services they provide. Insurance agents act as representatives for insurance companies, selling and servicing their products to consumers. An agent typically works for one company, but may have access to multiple products from different carriers. They have the authority to bind and service policies, but their duties are limited to the products they represent. In contrast, insurance brokers are independent agents that do not represent any one particular insurance company. Brokers are able to provide more services than insurance agents by representing multiple insurance companies and researching policies from multiple carriers to find the best coverage and price for their clients. They provide more insight into the insurance market, helping their clients compare policies and find the one that best meets their needs. Furthermore, insurance brokers are obligated to represent their clients’ interest above all else, while agents prioritize the interests of the insurance companies they represent. Unlike agents, brokers can continue working with clients until a policy is in force, and can also make recommendations for policy amendments and improvements. Both agents and brokers may receive a commission for their services, but the majority of their income is from commissions.

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What is the difference between an insurance agent and a broker?

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