What is Intermediary in Insurance?

An intermediary is a person or company that acts as a middleman between insurance buyers and insurance sellers. Intermediaries can include insurance agents, brokers, and wholesalers.

Insurance agents are professionals who represent one or more insurance companies and help individuals and businesses purchase insurance coverage. Agents typically work on behalf of the insurance company and receive a commission for the policies they sell.

Insurance brokers are professionals who represent the interests of the insurance buyer and help them purchase insurance coverage from a variety of different insurance companies. Brokers typically do not work for a specific insurance company and may receive a commission or fee for their services.

Insurance wholesalers are professionals who work with insurance brokers to help them access insurance coverage from a variety of different insurance companies. Wholesalers typically do not work directly with policyholders and may receive a commission or fee for their services.

Intermediaries can play a valuable role in the insurance industry by helping individuals and businesses find the right insurance coverage to meet their needs. They can provide expertise and assistance in evaluating different insurance options and can help policyholders understand the terms and conditions of their insurance policies.

It is important for policyholders to carefully consider their insurance needs and to work with an experienced intermediary to ensure that they have the coverage they need to protect against potential losses or damages. Policyholders should carefully review the terms and conditions of an insurance policy before purchasing coverage and should seek advice from an insurance professional if they have any questions or concerns.