Insurance Broker or Agent, Who to Pick
It is not a strange thing to hear a lot of people use the term “insurance brokers” and insurance agents” interchangeably. This normally happens when they are discussing insurance products or a related topic. The fact is the two terms are different and it may not be easing to grasp the difference especially if you are not into the insurance business. It is worth noting the difference between the two matters a lot particularly to an insurance buyer, nonetheless, insurance brokers and agents are authorized professionals allowed to provide insurance cover to individuals and businesses by the insurance firm (s) they represent. Typically insurance broker represents the policy buyer and they tend to bend more towards the people they represent, however, an insurance agent is an employee of the insurance company they represent. Regardless both insurance professionals are committed to providing their clients with the right cover that is an ideal match for their unique needs. This article outlines some of the main differences between insurance agents and brokers to help you make the right choice between the two insurance professionals.
The first thing you need to know is that insurance agents work for an insurance company they represent and receives a salary and a commission, however, insurance agents are basically the salespersons at the call center of the insurance company who explain about their products. The insurance agent will help you in selecting the right policy that matches your needs but it is good to have in mind that they have the interest of their insurance company at heart. Therefore, you need to pay attention to the policy insurance agents are recommending to assess whether it’s the right one for you. This is important because you might buy an expensive policy while there are an alternative and cheap policy that provides almost similar coverage. A good and reliable insurance agent will guide you into selecting the right insurance cover that takes care of your needs. There are two main types of insurance agents, namely captive agents and independent insurance agents. A captive insurance agent represents one insurance firm while an independent insurance agent can represent more than one insurance company. Both captive and independent insurance agents are employees of the insurance firm they represent and therefore earn salaries and commission from their sales.
Insurance brokers on the other hand are more inclined towards the policyholders. Because they mainly earn a commission from insurance buyers they are dedicated to providing them with the best and satisfactory insurance cover. Their interest is to the insured more than insurance companies. A reputable and trustworthy insurance broker will make sure you get a perfect policy and because they have access to a variety of insurance companies they are in a good position of getting you the right cover. Insurance brokers are becoming popular because of their skill to pay attention to details that enable them to identify critical features on insurance contracts hence able to make good recommendations regarding the ideal policy for their clients. Those are few things we thought you should know between insurance agents and brokers so you can make an informed decision on who to pick when buying insurance cover.