Insurance Agent vs Broker
Insurance agents and brokers are insurance professionals who are intermediaries between insurance companies and customers.
In the case of insurance agents, they only serve as a link between the customers and the insurance companies. Their function is more on an administrative level. They perform the paperwork, process policy forms and premiums for the policy holder. The insurance agents job ends once the customer takes the policy. It is for the customer to make an informed decision when buying policies and the insurance agent does not have any role in it. He is just a facilitator.
Insurance agents come in two types. The captive insurance agent is one who works for a single company and an independent insurance agent is one who works for many companies.
Insurance brokers are more professional than the insurance agents. They may help a customer to make the right decision on the policies. They offer a host of insurance policies for a customer to consider. When compared to insurance agents, the insurance brokers have more duties. Apart from the administrative role, the insurance brokers will analyse different policies and help a customer in securing the right policy.
Insurance brokers are more qualified than the insurance agents. And the fee of an insurance broker is higher than that of the fee of an insurance agent. Moreover, the insurance brokers can function only if they have a broker’s license.
While the insurance agent is just a mediator between the insurance companies and the customer, the insurance broker is more than that. Where the insurance agent just gives you all aspects of a particular policy, the insurance broker goes beyond just explaining the merits and demerits of a policy. Unlike the insurance agents, the insurance broker is independent.
In the case of insurance, the insurance brokers have more knowledge than the insurance agents. This is because the insurance brokers deals with a wide range of insurance companies and they have an idea of the recent trends in the insurance sector.
Summary
1. In the case of insurance agents, they only serve as a link between the customers and the insurance companies. Their function is more on an administrative level.
2. Insurance brokers are more professional than the insurance agents. They may help a customer to make an informed decision on the policies. They offer a host of insurance policies for a customer to consider.
3. Unlike the insurance agents, the insurance broker is independent.
4. In the case of insurance, the insurance brokers have more knowledge than the insurance agents.