Insurance Agent |
Insurance Broker |
Represents a single insurance company |
Broker represents multiple insurance companies |
Can only sell insurance products offered by the company they represent |
Can offer insurance products from several insurance companies |
Insurance agent earns a commission from the insurance company they represent |
Insurance broker earns a commission from both the insurance companies they represent, as well as from the policyholder |
May have a vested interest in selling insurance products from the company they represent |
Insurance broker has a fiduciary duty to act in the best interest of their clients and find the best coverage at the best price |
Insurance agent may offer advice based on the insurance products they offer |
Insurance broker offers impartial advice and can compare coverage and prices from several insurance companies |
Insurance agent may offer limited services |
Insurance broker offers a wide range of insurance-related services, such as policy review, claims assistance, and risk management |
Insurance agents must be licensed |
Brokers must also be licensed |
Insurance agents typically have a good understanding of the products offered by the company they represent |
Insurance brokers have a broad knowledge of the insurance market and multiple insurance products |
Insurance agents have a closer relationship with the company they represent |
Insurance brokers have relationships with multiple insurance companies and can act as an intermediary between the policyholder and the insurance company |
Difference between insurance agent and broker
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