General insurance The Basic Difference between an Agent and a Broker

[Mataracy]

Humanly speaking sometime we may be seeing an Agent and a Brokers as the same.

Though in the eyes of the general law of the land both the insurance broker and insurance agent are agents, but legally and professionally,they are agent of very distinct status and responsibilities.

The different between An Agent and insurance Broker is that:

(1) The agent is not a professional expert in insurance whereas a broker is a professional in the field of insurance.

(2) An agent is usually in the business of insurance on a part-time basis to introduce business to the insurer whereas a broker is a full- time professional who has much wider powers and responsibilities to his client than the agent.

(3) The reward of the agent patronage is the agency commission while a broker receives a brokerage commission which is also much higher than that of the agent.

(4) An agent cannot usually be traced to a corporate office of his own whereas a broker has a corporate business office where he transacts his business.etc.

Your own idea is welcome and will be more appreciate. What is your take here?

 

[Mandy96]

You are very correct with your explanation about the difference between an agent and a broker. A lot of people do not really know much about this difference. I mean most people do mix it up thinking a broker is another name you could call an agent when you are referring to insurance

 

[Mataracy]

You are very correct with your explanation about the difference between an agent and a broker. A lot of people do not really know much about this difference. I mean most people do mix it up thinking a broker is another name you could call an agent when you are referring to insurance

Yes; many don't really that a broker is an expert in the field and a professional who is knowledgeable of the relevant class or classes of business as well as the ability to handle practically all his clients' insurance problems and tobadvise the clents' insurance problems and to advise the client correctly and approproprately.
But an Agent in the other way round is just somebody who is is only knowledgeable in the class of the business he is trained to sell.

 

[Lens1000]

That's exactly the sharp differences between an insurance agent and a broker. Your explanation is the same as what was obtainable in the banking system, where we have numerous banking agents and the bankers. The agent act in capacity of the insurance broker.. the agent are not necessarily professionals in the field. They just act in place of the broker but there is limitations.

 

[btaliat]

Thanks for the clarifications between the agents and brokers. Most people always go for agents instead of brokers just because agents charge lesser compare to brokers. However, for the fact that brokers provide some technical advice doesn't mean that there are not some agents that are very good while giving advice.

 

[Wisdom01]

Thanks for these explanation , I will like to ask few questions , can we just refer the agents as referrals or affiliate marketers , since they are just there to promote the insurance company and after referring a client they are been paid some amount of commission for doing so