What does a broker do in the insurance industry?

In the insurance industry, the role of a broker is to act on behalf of the insured, assisting them in finding and placing insurance coverage with various insurance companies. Brokers work independently of any one insurer, which allows them to provide clients with a range of options tailored to their specific needs. Their primary responsibility is to advocate for the insured, ensuring they find the most suitable policies and are aware of the coverage available.

This role includes assessing the client's insurance requirements, researching different insurance products, obtaining quotes, and providing advice on the best course of action regarding their insurance needs. By representing the interests of the insured, brokers ensure they are getting the right amount of coverage at a competitive price.

In contrast, a broker does not act as an underwriter for an insurance company, which is a role focused on assessing risk and determining premiums. Additionally, while brokers may negotiate with insurers, they do not represent the insurer exclusively; they work to benefit the insured's interests. Furthermore, claims management is typically handled by claims adjusters or other designated professionals rather than brokers, who specialize in the procurement of insurance products.