Complex risks often need someone who works for the buyer, not the seller. A broker is an independent intermediary who arranges insurance on behalf of the client, shopping the risk among multiple insurers to obtain suitable terms and pricing.
Brokers advise on coverage design, prepare submissions, negotiate with underwriters, and assist with claims. Their legal duty of care runs primarily to the client. Compensation may be commission paid by the insurer or a fee paid by the client; disclosure rules vary by jurisdiction.
Large commercial and specialty risks almost always move through brokers because of the technical knowledge and market access required. Personal-lines brokers also exist in many markets. The quality of the broker’s market relationships and analytical support can materially affect the protection the client ultimately receives.
- Independent intermediary acting for the insurance buyer
- Shops risks among multiple insurers
- Provides advice, negotiation, and claims support
- Duty of care primarily to the client
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