Insurance Brokers vs Agents 5 Key Differences Explained

The moment you decide to buy insurance of any form, there are a couple of terms that will keep cropping up. Insurance agent and insurance broker. And in several places, they are used interchangeably. But are they indeed interchangeable? Or are there any differences? You will find several insurance brokers online, how about insurance agents?

An insurance agent and insurance broker, both need to obtain the necessary licenses to operate legally in the country. And they both act as intermediaries between insurance companies and policy buyers. However, that is where the similarities end. There are stark differences between insurance brokers online and insurance agents. Here are the prominent ones.

1. Whom they Represent

An insurance agent usually represents a single insurance company. And when you contact them, they will try to sell you various policies of the same company. 

On the other hand, an insurance broker represents multiple insurance companies at the same time. If you wish to buy a specific policy type, an insurance broker will provide you with policies from various insurance companies to choose from.

2. Policy Recommendations

The representation of an agent and a broker will give you a clear indication of what to expect when it comes to recommendations. An agent will always recommend policies from one insurer and in a vast majority of the cases, the recommendations are biased. 

A broker, however, would give you recommendations that are in your favour. Based on the inputs that you provide, the insurance broker will bring up only the relevant policies.

3. Expertise of Policies

Should you reach out to an insurance agent for buying a policy for a certain situation or criteria, they might or might not be able to give you the best option. In several instances, they lack both experience and expertise to recommend accurate policies.

Insurance brokers, on the other hand, are qualified to do the same. Once you inform them about your needs, they can help you get the best policy, irrespective of the category.

4. Transparency

Insurance agents receive commissions for selling policies and it should not come as a surprise. However, it is highly unlikely that they will reveal the commissions that they receive. And a good chunk of your premiums goes into that.

Brokers are required to disclose all this information to the user before they buy. Before you buy a policy, you can get to know the commissions. 

5. Policy Updates

Insurance agents almost always have the latest updates from a policy’s perspective. Offering you the latest iteration of the policy and its changes. 

However, insurance brokers can be a bit slow in imparting those back to you. They might not always have the latest updated policy details on them.

You can visit insurance brokers online and view the policies for a more informed decision. The presence of several brokers means you can even compare insurance brokers and get the best deal on your policy. A quick visit or call to your insurance agent is never a bad idea. However, if you do not wish to spend a lot of time buying and saving money in the process, you can opt for a car insurance broker online

Nov 18, 2021
SHARE THIS ON
Author Bio
Author Image

Gayatri Prabhu, Head-Digital Business at Mahindra Insurance Brokers Limited (MIBL) is one those few digital leaders who has the width and depth that is required to execute an ROI driven holistic digital strategy. She cuts through the noise, identifies the critical levers and leads her team to successful execution of the defined strategy. Her core mantra to win new and retain existing customers is: understand the consumer behavior and craft experiences around it.

Read More

Related Blogs

Would love to hear from you

Share your candid feedback. Your email address won’t be published, we promise!

All fields are required

Call me

Corporate Office : Mahindra Insurance Brokers Ltd ( A Mahindra Group Company ) Sadhana House, Ground Floor, 570 P. B. Marg, Behind Mahindra Towers, Worli, Mumbai 400018.

Licenced by IRDAI License No. 261; License Validity : 17-05-2022; Category : Composite Broker; CIN : U65990MH1987PLCO42609 Member of Insurance Brokers Association of India (IBAI).

Insurance is the subject matter of solicitation.

For a seamless experience, use the latest version of Chrome/Firefox/Internet Explorer.

Copyright © 2021 Mahindra Insurance Brokers. All Right Reserved.

GET AN INSTANT QUOTE