What role does an "insurance broker" perform?

An insurance broker serves as a licensed professional who represents clients to insurers. This role is crucial because brokers work on behalf of their clients to find the most suitable insurance products for their individual needs, rather than selling products for a specific insurance company. This independence allows brokers to compare policies from various insurers, ensuring that clients receive the best possible coverage and pricing.

The broker's responsibilities include gathering information about the client's insurance needs, offering advice on coverage options, and facilitating the acquisition of policies. Additionally, brokers are there to assist clients throughout the policy’s life, including during claims processes, representing the client’s interests and ensuring that they understand their coverage.

This role is fundamentally different from that of a direct agent, who typically represents a specific insurance company and sells its products exclusively. Financial advisers focus on investment risks and portfolio management rather than exclusively insurance needs, while a company that sells insurance products exclusively would not have the breadth of options for clients that a broker can provide.