As you shop around for insurance, you may hear terms such as ‘broker’ and ‘agent.’ Both titles apply to professionals who act as mediators between insurance buyers and insurance companies, but each job has specific duties.
As you explore your options, here are the key differences between insurance agents and insurance brokers.
What Is an Insurance Agent?
An insurance agent is a professional who interacts with one or more insurance companies. The two categories of insurance agents include:
- Captive agents: These agents work with a single insurance company. Captive agents are experts about the insurance products they sell and provide information on their policies and coverage.
- Independent agents: These agents typically work with multiple insurance companies. Independent agents can issue policies and provide additional services such as customer support and advice.
Captive and independent agents can carry out an insurance purchase transaction from beginning to end.
What Is an Insurance Broker?
An insurance broker is an expert who assists individuals or businesses in buying insurance. A broker will work with clients to create an insurance policy for their individual needs. There are three types of brokers:
- Retail brokers: A retail broker works directly with the client. They typically encourage clients to select more general insurance policies from the company or a wholesale broker.
- Wholesale brokers: A wholesale broker sells insurance to retail brokers and agents and doesn’t work closely with clients. They sell specialized insurance to clients with more complex risk coverage needs.
- Surplus lines brokers: A surplus lines broker will work with clients who need specialized policies or have different risk preferences. They can sell to clients or act as a wholesale broker to clients whose insurance needs are greater than what is typically insured.
Brokers will guide clients and companies throughout the entire purchasing transaction and meet with clients or representatives directly to find the best coverage for their needs.
Benefits of Working With an Insurance Agent
Insurance agents have an extensive understanding of the policies they sell. As insurance professionals, they will explain the ins-and-outs of the coverage you need and help you make the right purchasing choice. If you choose an independent insurance agency such as Strock Insurance, you’ll be working with agents who know your area intimately and can help you select coverage based on your local geography.
Whether you choose a captive or independent insurance agent, you can be confident you will receive professional service from the initial stage of your insurance purchase to the end.
Get a Quote From Strock Insurance
To experience the excellent service an independent insurance agency provides, contact Strock insurance today for a free quote!
