What is an Insurance Broker: A Guide to Understand the Differences Between an Agent and a Broker

What is an insurance broker is not difficult to understand. A few distinctive differences set them completely apart.

What is an insurance broker?

Aren’t insurance agents and brokers the same thing?

  1. An insurance agent’s primary duty is towards their carriers, whereas an insurance broker works for the best interest of their clients.
  2. According to Investopedia, an insurance agent earns based on either salary or commissions. However, an insurance brokers earnings are based on direct payments by the clients.
  3. Unlike insurance agents who earn based on commissions, an insurance broker is legally required to reveal the exact amount they have been charging their clients.
  4. According to Small Business, an insurance broker unlike an insurance agent, cannot bind coverages or complete insurance sales on behalf of their clients.
  5. Unlike insurance brokers, who represent their clients, an insurance agent must contribute to enhance the brand image of their carriers.

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Agency Height

Agency Height

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Agency Height is an insurance blog that offers insurance agents content about the insights and queries of the industry to make their work more efficient.