What is the difference between insurance broker and insurance agent? Broker is an independent contractor, who represents only the interests of his client.
Broker will take care of signing and executing the insurance contract. Broker is not hired by any insurance company and therefore he or she will present different offers from insurers, which will allow their clients to pick the best offer available. Agent works for the insurance company and therefore he or she will try to sell the contract for his company.
Broker’s job is regulated by law set in 15th of December 2017 to insurance distribution. In order to call oneself a broker that person need a permission for brokerage work. Every broker needs to have an OC insurance and their work is supervised by Board of Financial Supervision (KNF).