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All You Need to Know about Insurance Agents and Brokers

It is not a rare thing to hear people use the term “insurance agents” and “insurance brokers” interchangeably when they are talking about insurance products and services, however, these insurance terms are different but they can be confusing to wrap your head especially when you are not conversant to insurance matters. The discrepancy between the insurance agents and brokers is vital particularly to the policy buyers in terms of what each can provide, nevertheless, both insurance professionals and brokers are licensed to provide insurance covers to people and businesses by the insurance company they represent. Generally an insurance agent represents an insurance company while the insurance broker tends to bend more towards the policy buyer. Before settling on a particular insurance professional it is important to learn their differences so that you can make an informed decision, to help you familiarize with the two insurance professionals we have articulated brief information regarding their roles and key differences in the insurance sector.

What you need to know about insurance agents is that they are salaried employees of a particular insurance firm and they are mainly composed of the individuals you find at the call center of the insurance company who provide more details to potential clients about the products,
services, and prices their insurance company offers. In most cases, an insurance agent will guide you in selecting the right insurance policy that effectively covers your needs, but you need to have it in mind that an insurance agent is a representative of an insurance company and therefore will have the interest of the insurance firm first, this calls for caution when buying your policy from an agent because you might take a pricey policy whereas you can get the same cover from a relatively cheap policy. The are two main types of insurance agents, captive and independent agents, these two are almost similar because they both work on commission and are authorized by the insurance firm they represent to provide insurance cover on their behalf, but the difference is captive insurance agent deals with a single insurance firm while independent insurance agents represent more than one insurance companies.

Regarding insurance brokers they work to represent the interests of policyholders but not those of insurance companies, therefore, insurance brokers work hard to make sure they get you a policy that is effective and matches your needs, furthermore, insurance brokers have access to a variety of insurance products from a plethora of insurance companies making it easy for them to get you the right policy for you. One of the reasons insurance brokers have become popular in the field of insurance is their skill in pay attention to details, this has enabled them to identify critical features in a variety of policies making them a reliable choice when you are looking for an insurance policy. Those are some information we gathered about insurance agents and brokers and you are now informed.

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