An insurance agent and an insurance broker .. What is the difference between them? - CNN BLOG

An insurance agent and an insurance broker .. What is the difference between them?


Some may ask about the difference between an “insurance agent” and a “insurance broker,” and I have seen that I shed some light on the most important fundamental differences between them, which the reader might want to know about.

To begin with, it must be clarified that the insurance agent and the insurance broker are both considered among the self-employed who have been referred to in the executive regulations of the Cooperative Insurance Companies Control Law. The first article of this regulation defines the self-employed as “persons who are authorized to practice any of the liberal professions Related to insurance and / or reinsurance activities. What is meant by persons here, according to this article, is “any natural or legal person”.

The same article also defined the insurance agent as “the legal person who, in exchange for a material consideration, represents the company, markets and sells insurance policies, and all the work that he usually performs for the company or on its behalf.” The same article also defined the insurance broker as “the legal person who undertakes A consideration for material consideration by negotiating with the company to complete the insurance process for the benefit of the insured.

What is meant by the company here, according to this article, is “a public shareholding company that practices insurance or reinsurance, or both.”

It must be made clear that one of the responsibilities of the insurance agent and insurance broker is to provide sound insurance advice to the insured and disclose to them that the risks are covered by the company that issued the document, in addition to providing adequate information about insurance products to clients, and that there is no kind of temptation or misleading.

The information provided by an insurance agent and insurance broker to clients includes, as a minimum, the following:

Limits and exclusions of the insurance coverage of the insurance policy, the amount of the subscription or the premium, the start and end date of the policy, any conditions stipulated in the policy and the name of the company issuing the document, and often the insurance agent represents a specific insurance company, meaning that he does not represent or deal with other insurance companies if he is committed under an agreement With this company, he does not work as an agent except for it and he does not refer any insurance contract to others.

It is quite easy for the customer to often recognize that the person who will deal with him is an insurance agent and not an insurance broker, and this is evident through the name of the insurance company that the insurance agent represents and appears on the board of the insurance agent’s business headquarters and through the brochures displayed, papers and forms used in the work of the insurance agent. .

While the insurance broker has the right to deal with more than one licensed insurance company, he must disclose to the insured what he gets from the insurance company in terms of commission and fees for the services it provides, work for the benefit of the insured and allow them to obtain the best insurance offers and products available in the market. Disclosure of the features of the insurance policy compared to other similar policies in terms of coverage and price before recommending its purchase.

Whether you choose to deal directly with an insurance company or through an insurance agent or insurance broker, in order to obtain a specific insurance coverage, you must make sure that you are dealing with a body licensed by law to practice this profession, and that you also make sure that you obtain the insurance coverage that meets Your need, and do not forget when contracting to obtain a copy of the insurance policy, read it carefully, and properly understand its terms, conditions and exceptions, leaving no room for doubt.


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