Agents and Brokers Insurance, What is the Difference?

Insurance agents and brokers / insurance brokers are equally act as intermediaries selling insurance. Both provide advice on a variety of insurance solutions available and help the process of purchasing insurance. They also prepare reports, keep records and assist policyholders or their heirs and settle claims filed.

insurance agents

There are two types of insurance agents: independent agents and agents employed by insurance companies. Independent agent is a licensed independent company and help market the insurance products on commission basis. Agents are employed by insurance companies are the individuals who work on salary and / or commission. Insurance agent must be registered and licensed to sell insurance products.

insurance broker

Broker or an insurance broker acting on behalf of the insured (not represent insurance companies, such as the insurance agent). For and on behalf of the insured, the insurance broker to find insurance companies that can provide coverage best suits the needs of the insured. Typically, this type of insurance associated with commercial activities, coverage is specific, and the value of insurance. Commercial general insurance and health insurance collection fall into this category. Brokers may form companies or individuals who are paid on commission basis.
Like the company's insurance agents, insurance brokers must obtain permission from the Minister of Finance. Insurance brokers are prohibited from placing insurance coverage on an insurance company that is still an affiliate, unless the prospective insured has been notified in writing in advance and approved it. A person or company must not act as agents and brokers at the same time.