Many time you will overhear people talk of “insurance agents” and “insurance brokers” as if they are the same thing but they are different things, however, this is not a strange thing especially to people who are not involved too much in insurance matters. However, the difference between insurance agents and brokers matters especially to the policy buyer, however, they are both professionals licensed to provide insurance covers to individuals and businesses on behalf of an insurance company. Typically an insurance agent is an employee of the insurance company they are representing but an insurance broker acts as representative of the policy buyer. Before settling on a particular insurance professional it is important to learn their differences so that you can make an informed decision, to help you familiarize with the two insurance professionals we have articulated brief information regarding their roles and key differences in the insurance sector.
The first thing you need to understand is that an insurance agent is an employee of the insurance firm they are representing and receives a monthly salary and also earn a commission, insurance agents are a typical salesperson at a call center of the insurance firm who elucidates to potential insurance consumers about their products, services, and prices . In most cases, an insurance agent will guide you in selecting the right insurance policy that effectively covers your needs, but you need to have it in mind that an insurance agent is a representative of an insurance company and therefore will have the interest of the insurance firm first, this calls for caution when buying your policy from an agent because you might take a pricey policy whereas you can get the same cover from a relatively cheap policy. Basically there are two types of insurance agents namely a captive agent who represents a single insurance company and the other one is an independent insurance agent who represents more than one insurance firms, in most cases both captive and independent agents work on commission and are authorized by the insurance company they represent to provide insurance policy on their behalf.
Regarding insurance brokers they work to represent the interests of policyholders but not those of insurance companies, therefore, insurance brokers work hard to make sure they get you a policy that is effective and matches your needs, furthermore, insurance brokers have access to a variety of insurance products from a plethora of insurance companies making it easy for them to get you the right policy for you. It is the duty of insurance broker to compare a variety of available products and advise their clients accordingly unlike consumers who can easily ignore some vital features of a policy insurance brokers pay special attention to details making an excellent professional for selecting the right policy for you. You know have some insight about insurance agents and brokers which can guide you in determining who to select when you are looking for an insurance cover.