insurance agent vs broker

1. Insurance Agent Vs BrokerWho Is The Right Choice? 

2. What are insurance agents and brokers? • The primary job of both insurance agents and brokers is to sell insurance to their clients.  • Both professions need to be licensed in their states and must comply with all applicable rules and regulations. And both insurance agent and broker act as intermediaries between the insurance buyers and the insurance provider.

3. What is the difference between an insurance agent and a broker? • The primary difference between insurance agents and brokers is who they represent.  • While insurance agents represent one or more insurance companies, insurance brokers represent the insurance buyer.

4. What is an Insurance Broker? Insurance brokers work directly with insurance buyers and are not tied in any form with insurance companies. They utilize their knowledge, expertise, and experience to help you assess your unique insurance needs so you can find the coverage that’s best suited for you.  Some key roles and responsibilities of insurance brokers include:  Develop effective marketing strategies Carry out administrative tasks and document management Manage business development and promotional activities Establish a professional relationship between insurance buyer and insurance providers

5. How does an Insurance Broker make Money? • Insurance brokers make a living by collecting broker’s fees and charging commissions. Once their client has accepted a quote and completed a purchase with the insurance provider, the insurance broker receives a certain percentage of the premium cost as commission from the insurer.  • Insurance brokers rely on business from existing clients. This allows them to earn additional commissions when their clients need a new insurance policy or have to renew an existing policy.   

6. Advantages of choosing an Insurance Broker • Low Cost • Low chance of Bias • Market Expertise  • Availability of Discounts

7. Disadvantages of choosing an Insurance Broker • Reliance on Insurance Agents • Limited Offers  • Lack of Training and Experience • Sales-driven

8. What is an Insurance Agent? An insurance agent is a professional who acts as representative for insurance companies. They help their clients select the right insurance to buy, but represent the insurance company throughout the process.  An insurance agent allows their client to choose from available policies that are offered by the carrier.  

9. There are primarily two types of insurance agents:  • Captive agents typically represent one insurance company.  • Independent agents or insurance sales agents can represent multiple carriers rather than a single entity. 

10. How does an Insurance Agent make Money? The rate of commission that captive agents make depend on whether they are employees of their parent company, or independent contractors.  Insurance agents who are regarded as employees are provided salaries and benefits.  Insurance agents who are classified as independent contractors are provided with payment based on sales and commissions. 

11. Advantages of choosing an Insurance Agent • Save money • More options • Saves time and effort  • Unbiased and reliable advice 

12. Disadvantages of choosing an Insurance Agent • Possibility of Bias • Possibility of Inexperience

13. Let us help you solve your insurance woes!  Get in touch with us today! 

14. Get in touch with an agent to stay covered.