What is the primary function of an insurance broker?

The primary function of an insurance broker is to mediate between clients and insurance companies. Brokers work on behalf of their clients to identify the best insurance products that meet their specific needs, facilitating the process of obtaining coverage. They serve as intermediaries, offering expert advice, negotiating terms, and providing options from various insurance providers. This advocacy role ensures that clients receive personalized solutions that align with their individual circumstances.

In contrast, selling insurance policies exclusively refers to the role of an insurance agent who typically represents a specific insurance company and sells its products. Assessing risk is a function often associated with underwriters, who evaluate applications to determine the acceptability of risks. Handling claims is primarily the responsibility of claims adjusters or insurance company representatives, not brokers, who focus on client relationships rather than claims processing. The nuanced role of the broker reinforces the importance of client advocacy in navigating the complexities of insurance coverage.