What is the difference between working with an Insurance broker and an Insurance Agent? From which professional would you recommend I purchase insurance?
Insurers deliver their insurance products to policy owners primarily via independent or exclusive agents. Historically, almost all insurance agents were independent business professionals who were paid sales commissions. In recent times however, several insurance companies have adopted a classification system which considers certain types of agents independent employees of an insurance company; these agents are now referred to as ‘exclusive’ or ‘captive’ agents. Recent studies suggest captive agency is a less efficient method of providing clients with viable insurance options, as they are affiliated with a single company. Independent brokers on the other hand, are affiliated with several companies, and are thus able to offer advice, access to higher quality plans, education, personalized service and claims assistance, once the claim is filed with the insurance company. The services of an independent broker might be considered a viable option for those who consider support, guidance and
