Ace the 2025 Life & Health Insurance Exam – Insure Your Success Today!

The role of a broker in the insurance industry is to act as an intermediary between the insured (the client seeking insurance coverage) and the insurance companies (the insurers who provide the coverage). Unlike agents, who represent a specific insurance company and typically have a contractual obligation to sell that company's products, brokers operate with a more independent stance. They are committed to serving the interests of the insured, helping clients to evaluate and compare different policies and options from multiple insurers to find the coverage that best fits their needs.

Brokers possess a comprehensive understanding of various insurance products across different companies, allowing them to provide tailored advice that aligns with the insured's requirements. This independent representation is crucial in ensuring that clients receive unbiased guidance in their insurance purchase decisions.

In contrast, agents are tied to specific insurers, adjusters handle claims and evaluate losses for insurance companies, and insurers are the companies that provide the policies themselves. This delineation of roles highlights the unique position of brokers as representatives of both the clients and the insurance market, facilitating informed decisions for their clients.