Are there really any differences between the insurance agents and brokers?
Total Comments: 15
Posted: Tue Nov 11, 2008 08:27 am Post Subject:
Hi Pompido,
Insurance brokers are professionals who'd offer you a vast channel of products to choose from. They are independent and more than that. That's why probably they are being described as "super-independent". Brokers are licensed agents and hence they are essentially more qualified than that of the general agents. ArindamSenIndies
Posted: Tue Nov 11, 2008 08:48 am Post Subject:
Hi,
Brokers would need to involve themselves with a lot of other stuffs across the different states. They would need to analyze the business operations after a careful considerations of facts and thus decide the right kinda coverage towards covering the business.
On the other hand the agent would merely have some administrative tasks to perform. But yeah, you'd certainly need to pay them more than the general agents. Brokers would either charge the administrative fee or fetch more premiums for issuing the coverage. Evan
Posted: Tue Nov 11, 2008 11:00 am Post Subject:
While the insurance agents work on behalf of the insurance company, the broker works for the customer. The broker has lot more flexibility in finding a policy that would suit your needs.
While the insurance agents receive the commission on the sales, the broker receives brokerage fees from the client.
Many a times you may hear people use the terms insurance agents and brokers synonymously, but they are different by their nature of work.
Hope this helps.
~Jeremy
Posted: Wed Nov 12, 2008 08:31 pm Post Subject:
I'd just like to expand on Jeremy's post a bit.
From a layman's, or general insurance consumer's standpoint, the terms agent and broker are entirely snonymous. From a position within the industry, there are basic differences. Agents usually work for a specific company (Allstate Agent, John Doe) and brokers are usually self-employed (John Doe Insurance and Financial Planning).
While the insurance agents receive the commission on the sales, the broker receives brokerage fees from the client.
Both agents and brokers receive commissions from the companies they represent. A fee-based practice is a slightly different entity and is more heavily regulated than the others. An agent has to jump through a few more regulatory / legal hoops to make that one work.
Posted: Thu Nov 13, 2008 04:40 am Post Subject:
Wow!! Investigator, thanks for dropping in with the imvaluable information. Also thanks for clarifying my shaddy areas. Hope it will help the OP to understand better about the broakers and agents.
Posted: Tue Apr 19, 2011 06:06 am Post Subject: nJZlWeMfEUGx
Brokers.. Super :)
Posted: Tue Apr 19, 2011 07:01 pm Post Subject:
I'm an Independent Insurance Agent in GA and want to know how do you become a Broker?
I've read so many different things for example:
-There is no real difference between agent/broker/producer
-To be a broker you must have been an agent first depending on what state you live in
-Brokers don't have contracts with Insurance Companies
Is it better to be a Broker than an independent agent because you can negotiate the price for clients?
What else is required to become a broker besides a surety bond?
Thanks.
Posted: Fri Apr 22, 2011 08:43 am Post Subject: SlMaQMPuXj
Brokers.. Keen :)
Posted: Fri Jun 03, 2011 02:49 am Post Subject: XjdRPXVzcdHjPvMhP
Brokers.. Peachy :)
Posted: Wed Jun 22, 2011 09:29 am Post Subject:
Both insurance agents and brokers are insurance professionals who work as intermediaries between the insured and insurer.
Insurance agents are basically of two types. One is captive and other is an independent insurance agent. A captive insurance agent works only for one insurance company whereas an independent insurance agent works for many. The only serve as a link between insurance company and customer.
On the other hand, insurance brokers have more duties as compared to insurance agents. They even help their customers to make a knowledgeable decision in terms of their policies.
Posted: Tue Nov 11, 2008 08:27 am Post Subject:
Hi Pompido,
Insurance brokers are professionals who'd offer you a vast channel of products to choose from. They are independent and more than that. That's why probably they are being described as "super-independent". Brokers are licensed agents and hence they are essentially more qualified than that of the general agents. ArindamSenIndies
Posted: Tue Nov 11, 2008 08:48 am Post Subject:
Hi,
Brokers would need to involve themselves with a lot of other stuffs across the different states. They would need to analyze the business operations after a careful considerations of facts and thus decide the right kinda coverage towards covering the business.
On the other hand the agent would merely have some administrative tasks to perform. But yeah, you'd certainly need to pay them more than the general agents. Brokers would either charge the administrative fee or fetch more premiums for issuing the coverage. Evan
Posted: Tue Nov 11, 2008 11:00 am Post Subject:
While the insurance agents work on behalf of the insurance company, the broker works for the customer. The broker has lot more flexibility in finding a policy that would suit your needs.
While the insurance agents receive the commission on the sales, the broker receives brokerage fees from the client.
Many a times you may hear people use the terms insurance agents and brokers synonymously, but they are different by their nature of work.
Hope this helps.
~Jeremy
Posted: Wed Nov 12, 2008 08:31 pm Post Subject:
I'd just like to expand on Jeremy's post a bit.
From a layman's, or general insurance consumer's standpoint, the terms agent and broker are entirely snonymous. From a position within the industry, there are basic differences. Agents usually work for a specific company (Allstate Agent, John Doe) and brokers are usually self-employed (John Doe Insurance and Financial Planning).
While the insurance agents receive the commission on the sales, the broker receives brokerage fees from the client.
Both agents and brokers receive commissions from the companies they represent. A fee-based practice is a slightly different entity and is more heavily regulated than the others. An agent has to jump through a few more regulatory / legal hoops to make that one work.
Posted: Thu Nov 13, 2008 04:40 am Post Subject:
Wow!! Investigator, thanks for dropping in with the imvaluable information. Also thanks for clarifying my shaddy areas. Hope it will help the OP to understand better about the broakers and agents.
Posted: Tue Apr 19, 2011 06:06 am Post Subject: nJZlWeMfEUGx
Brokers.. Super :)
Posted: Tue Apr 19, 2011 07:01 pm Post Subject:
I'm an Independent Insurance Agent in GA and want to know how do you become a Broker?
I've read so many different things for example:
-There is no real difference between agent/broker/producer
-To be a broker you must have been an agent first depending on what state you live in
-Brokers don't have contracts with Insurance Companies
Is it better to be a Broker than an independent agent because you can negotiate the price for clients?
What else is required to become a broker besides a surety bond?
Thanks.
Posted: Fri Apr 22, 2011 08:43 am Post Subject: SlMaQMPuXj
Brokers.. Keen :)
Posted: Fri Jun 03, 2011 02:49 am Post Subject: XjdRPXVzcdHjPvMhP
Brokers.. Peachy :)
Posted: Wed Jun 22, 2011 09:29 am Post Subject:
Both insurance agents and brokers are insurance professionals who work as intermediaries between the insured and insurer.
Insurance agents are basically of two types. One is captive and other is an independent insurance agent. A captive insurance agent works only for one insurance company whereas an independent insurance agent works for many. The only serve as a link between insurance company and customer.
On the other hand, insurance brokers have more duties as compared to insurance agents. They even help their customers to make a knowledgeable decision in terms of their policies.
Add your comment