What is the function of a broker in insurance?

The function of a broker in insurance is fundamentally to represent the interests of the insured. This means that brokers act as intermediaries between clients seeking insurance coverage and the various insurance companies that offer policies. Their primary role is to assess the needs of their clients and then find a suitable coverage solution that best fits those needs from available options in the marketplace.

By working on behalf of the insured, brokers are tasked with providing expert advice, negotiating terms, and ensuring that their clients understand the products they are purchasing. This client-centered approach allows brokers to tailor insurance solutions to meet specific requirements, helping clients navigate the often complex world of insurance products.

This role contrasts with that of agents, who typically represent one insurance company and may be more focused on selling specific company products. Understanding the broker's role is crucial in the insurance landscape, as it highlights the importance of advocacy and personalized service in securing optimal coverage for clients.