Insurance Broker

Insurance brokers compare policies from multiple insurers to find cover that suits their clients' needs and budget. They can also advise on how much cover is needed, explain policy terms and exclusions, and help with making claims.

Brokers are particularly valuable for complex insurance needs, such as large businesses, specialist industries, high-value homes or unusual risks, where policies need to be tailored and negotiated. For example, a construction company might use a broker to arrange liability, property, vehicle and employee insurance from several insurers in one coordinated programme.

Brokers differ from insurance agents. Agents typically represent one or more insurance companies and sell their products, while brokers represent the client and can search the wider market. The exact legal distinctions vary between countries.

Brokers are usually paid through commission from the insurer, a fee from the client or both. Because commission could create a conflict of interest, regulations in many countries require brokers to disclose how they are paid and to act in their clients' best interests. Online comparison websites have taken over much of the simple personal insurance market, but brokers remain important for business and specialist cover.