{"id":1887,"date":"2023-02-16T12:30:52","date_gmt":"2023-02-16T04:30:52","guid":{"rendered":"https:\/\/www.pacificprime.co.uk\/blog\/?p=1887"},"modified":"2023-02-17T11:35:32","modified_gmt":"2023-02-17T03:35:32","slug":"whats-the-difference-between-an-insurance-broker-and-agent","status":"publish","type":"post","link":"https:\/\/www.pacificprime.co.uk\/blog\/whats-the-difference-between-an-insurance-broker-and-agent\/","title":{"rendered":"What\u2019s the difference between an insurance broker and agent?"},"content":{"rendered":"

If you\u2019re looking for health insurance, you\u2019ll soon find out that there are not only many plans to choose from, but different distribution channels as well. You can buy directly from an insurance company, through an agent who sells plans on behalf of the insurer or through a broker who finds and compares medical insurance coverage for you. But unless you\u2019re part of the insurance industry, you probably won\u2019t know what sets these options apart.<\/p>\n

Fret not, we\u2019ll help you understand the key differences between an insurance broker and insurance agent in this Pacific Prime UK<\/a> article.<\/p>\n

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Buying insurance directly from an insurer<\/h2>\n

Insurance companies are only allowed to sell their own policies. When shopping for insurance, buyers tend to assume that buying directly from an insurance company will be the cheapest and easiest option. While that is possible, the direct approach tends to only work to your advantage if you\u2019re already familiar with insurance products and the insurance market.<\/p>\n

To begin with, it can be difficult for an HR team, business owner or individual to research and compare health insurance plans<\/a> without an advisor\u2019s insight. The reason for this is that it takes a lot of time to understand, and become familiar with, all the options available to decide if they\u2019re an ideal fit. Without expert advice, there\u2019s a higher chance that you\u2019ll choose the wrong plan for your staff and business, which can ultimately be an expensive mistake. A good agent or broker can provide expert advice at no additional cost.<\/p>\n

Even though it\u2019s possible to get a cheaper premium without the help of an intermediary, that often isn\u2019t the case. One reason for this is that insurance companies rely on third parties to bring them business. If the insurance company offers plans that are much cheaper than what they offer clients through intermediaries, those agents or brokers will be less motivated to sell their products.<\/p>\n

What\u2019s more, they are likely to stop selling that insurer\u2019s policies entirely. This could dramatically reduce the number of potential customers, leaving them with the expensive task of increasing investment in their own efforts and sales teams.<\/p>\n

What does an insurance agent do?<\/h2>\n

An insurance agent has the authority to sell on the insurers\u2019 behalf. They can even adjust coverage on occasion – typically with the objective of increasing insurer profit and sales. So what\u2019s the difference between insurance broker vs agent<\/a>, you might ask? The main features that set an agent apart from a broker include:<\/p>\n