An insurance broker/adviser represents their client/policy holder while an insurance agent represents the insurance company they work for.
Insurance Broker / Insurance Adviser:
An insurance broker/adviser can use the products of many different insurers and can offer several policies for their clients to consider. Brokers/advisers are also required to trade under a license, so they may have more experience or education on various insurance policies than an agent. They have the duty to assess the risks of a business and are responsible for securing appropriate and sufficient cover for the business of their clients.
Insurance Agent:
An insurance agent works for an insurance company, and has a completely different role than an insurance broker/adviser. Their job is to promote their company’s insurance products and they usually don’t have the responsibility to assess a client’s business or to ensure that their policies are appropriate. Agents are typically limited to only sell policies for the insurer they represent and work in the interest on an insurance company. Some agents may represent more than one insurer, and if they do, must be cross-endorsed to do so under ASIC regulation.
