What is an insurance 'broker'?

An insurance broker is defined as an individual or firm that sells insurance on behalf of various insurers. This role is crucial within the insurance industry as brokers act as intermediaries between clients seeking insurance coverage and the insurance companies providing those policies. Brokers are typically knowledgeable about the market and can offer clients different options from multiple insurers, helping them find suitable coverage that meets their specific needs.

The importance of brokers lies in their ability to provide personalized service, as they can assess clients’ requirements and recommend policies that align with those needs. By representing multiple insurers, brokers can help clients find the best deals and coverage options, allowing for more competitive pricing and a broader range of products. This contrasts with other roles, where representatives might only sell products from a single insurance company.