UK Accounting Glossary
An insurance broker is a professional that helps consumers and businesses research and selects the best insurance policies for life, health, property and automobile protection. An insurance broker works for an agency and represents more than one insurance company.
When insurance is needed, an insurance broker will place policies on behalf of their clients with the companies that offer the best coverage and rates. Typically, an insurance broker maintains records, prepares reports, markets their services, and, in the event of a loss, an insurance broker will also help policyholders settle any claims.
Today’s insurance broker is extremely versatile offering other services such as retirement and estate planning. A formal education and specialized training is usually required to pursue a career as an insurance broker. An insurance broker is typically paid in one of four ways: commission only, salary only, salary plus commission or salary plus bonus.
An insurance broker is often an independent intermediary whose job it is to work on your behalf to find the best insurance policy from a range of insurers ( underwriters ).
Some intermediaries trade under titles such as ‘agent’ or ‘consultant’. Where this is the case, they might only represent between a handful of insurance companies. Whoever you buy from is obliged to tell you what sort of intermediary they are
The job of an insurance broker is to prepare the paperwork on each individual policy to present to the insurance company.
A good insurance broker will be able to recommend several different policy options to their clients.
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This glossary post was last updated: 9th February 2020.