Insurance Brokers vs. Agents; What’s The Difference?

Let’s be honest; the insurance industry can be difficult to navigate.  It can be frustrating when you’re trying to find the best combination of service, rate, and coverage.  It can even be trying for brokers and agents at times.

To begin to simple insurance, let’s review a topic frequently discussed with people who are asking about insurance.  The “what’s the difference between an insurance broker and an insurance agent?” question comes up a lot.  Below you’ll find some facts that compare, contrast, and recap differences.

Brokers vs Agents

Quick Facts about Brokers:

  • Brokers partner with multiple insurance companies and sell products for them.

  • They are able to shop multiple insurance companies to find the best fit.

    • This includes different product types, coverages, deductibles, discounts, and prices for your situation.

  • Brokers provide help through the claims process. dbi Brokers Ltd even has a dedicated in-house claims rep that works for you!

  • They must pass licencing exams, register with an official provincial body, and earn annual education credits to ensure they maintain their knowledge and expertise.


Quick Facts about Agents:

  • Agents represent one insurance company.

  • They know their products very well, but don’t have as many options.

    • Limited to product types, coverages, deductibles, discounts, and prices offered by their insurance company.

  • Agents generally don’t assist in the claims process, and the claims adjuster works for the insurance company, not the client.

  • They get licensed from a provincial body, but aren’t required to complete the same in depth education as brokers.

As a recap, insurance agents offer products from one company, and they work for that same company.  In contrast, brokers are able to offer products from companies that they have partnered with, and they work for their clients.

Going back to the honesty theme, insurance isn’t something you want to think about or deal with, and the decision on what type of insurance representative to use is completely up to you.  Hopefully these facts assists you with your your future insurance decisions.