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. Generally an insurance agent represents an insurance company while the insurance broker tends to bend more towards 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.
You need to know that insurance agents are typical employees of a particular insurance company who receive commissions from their sales, these are generally he people you find at the call center of an insurance firm who furnish you with elaborate information about the products, services, and prices their insurance company provides. A good and reliable insurance agent will guide you in picking the insurance policy that caters to your intended needs, but you need to understand that an insurance agent represents the interests of the insurance company during the transaction and therefore important to be extra cautious because you might take an expensive policy that might be unnecessary and could be replaced a relatively cheap policy that meets your needs. The are two main types of insurance agents, captive and independent agents, these two are almost similar because they both work on commission and are authorized by the insurance firm they represent to provide insurance cover on their behalf, but the difference is captive insurance agent deals with a single insurance firm while independent insurance agents represent more than one insurance companies.
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. One main role of an insurance broker to examine a variety of insurance products and advise their clients, they have special skills in focusing on details that make them identify features in a product their client could have missed and had a significant impact on their policy, this has made them popular in selecting the right policy for their clients. Those are some information we gathered about insurance agents and brokers and you are now informed.