What is the role of an "insurance broker"?

An insurance broker serves as an intermediary between clients and insurers, playing a crucial role in the insurance market. They are appointed by clients to help them identify their insurance needs and find suitable policies that meet those needs. Brokers have access to a range of insurance products from multiple providers, allowing them to offer a variety of options rather than being limited to a single insurer.

This role entails assessing risks, advising clients on the coverage that is appropriate for them, and facilitating the purchase of insurance contracts. Additionally, brokers often assist with claims processes and ongoing service, ensuring that clients are adequately informed and supported throughout their insurance journey.

The importance of this role lies in the broker's duty to act in the best interests of their clients, providing independent advice rather than representing the interests of a specific insurer. This is distinctly different from roles like a claims adjuster, who evaluates claims for insurance companies, or a financial advisor, who may focus on broader financial planning rather than specific insurance needs. Thus, the definition of an insurance broker accurately encapsulates their responsibilities within the insurance industry.