Both insurance brokers and insurance agents act as intermediaries between insurance buyers and insurers. The primary difference between an insurance broker and an insurance agent is who each represents. While a broker represents the insurance buyer, an agent represents one or more insurance companies.

What Does insurance brokers do?

An insurance broker is a professional who acts as an intermediary between a consumer and an insurance company, helping the former find a policy that best suits their needs. Insurance brokers represent consumers, not insurance companies, and therefore they can’t bind coverage on behalf of the insurer.

What is an insurance agent called?

Independent insurance agents, also known as insurance sales agents or “producers”, typically sell a variety of insurance and financial products, including property insurance and casualty insurance, life insurance, health insurance, disability insurance, and long-term care insurance.

What’s the difference between a broker and an agent?

Wholesale brokers provide specialized insurance products to retail agents or brokers. These types of brokers have no contact with the end buyer—the individual, family, or business that buys the insurance. They provide specialized knowledge and expertise on insurance for more complex risks.

What’s the role of an insurance broker in Ontario?

Role of Agents and Brokers •Outside of Ontario, the terms “insurance agent” and “insurance broker” are used interchangeably. •In Ontario, an agent is only permitted to represent one insurer. •In Ontario, a broker is a part of a self-regulating professional body, and is able to place insurance with multiple insurers.

What are the different types of insurance brokers?

There are several types of brokers: Retail brokers work directly with customers to help them obtain insurance, either directly from the insurance company or from wholesale brokers if the risk is more complex and requires a more specialized insurance product. Wholesale brokers provide specialized insurance products to retail agents or brokers.

What’s the difference between an insurance broker and a captive agent?

Insurance agents, often referred to as “captive” agents, typically represent one insurance company. Insurance brokers, on the other hand, represent multiple insurance companies to ensure that you are connected with the right insurance for you.