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There isn’t really any difference between an Insurance Broker and an Insurance Agent. An Agent is the representative of the insurance company a customer buys the insurance they need from. The insurance company provides the insurance coverage and the agent or broker is licensed with the state and appointed by the insurance company to represent them for the business with the customers.
- Captive or Direct Insurance Agents are employed directly by the insurance company, and work for that insurance company only.
- An Insurance Broker is an independent insurance agent who is appointed by a variety of insurance companies to represent, sell and service a customer’s insurance policies.
- A Broker is also known as in Independent Agent. An insurance broker makes purchases of insurance coverage for their customers.
- An insurance broker is more likely to help customers determine their personal insurance requirements and offer choices and options from several Insurance companies.
- Insurance brokers are more likely to search and shop for the best coverage and Risk Management choices.
- Insurance brokers routinely recheck the customer’s insurance portfolio and investigate the products each insurance company offers and how it might be of value to their customers.
- Brokers often have access to more specialized insurance products.
- Insurance Broker and brokerages often have specialized agents working together in order to offer more complex insurance services.
- Brokers can often provide personal lines insurance, and small business coverage’s. Customers may often find a brokerage can supply specialized insurance services for all areas of insurance needs.
- Brokers can offer one contact for all of your insurance needs, as well as accommodate an expanding growth of personal and business assets.
- Adding the amazing, “something outrageous” to your life, such as the houseboat or condo in San Diego can often be insured with simplicity if your insurance is all with the same brokerage.
I have worked in both a Captive Insurance Agency and in a small and large Insurance Brokerage. Both have an important value for the customers they serve. Families with fewer assets, or liability only needing insurance for Personal Auto Insurance and Homeowner or Renters policies with basic coverages will be well served with an insurance agent and the company discounts that agent has to offer.
The more complex or complicated the insurance needs become the more valuable an insurance broker or brokerage becomes. Some insurance brokers will only work with more affluent customers and require higher Insurance Credit Scores, personal assets and overall insurance business.
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