Most people purchase insurance policies through insurance agents. These insurance agents are usually people who work for one or more insurance companies. On the other hand, companies generally tend to buy insurance from insurance brokers. Individual buyers often hear of insurance brokers such as Pragmatic. However, they don’t know what the exact difference is between an insurance broker and an insurance agent. In this article, we will take a closer look at the role these two types of intermediaries play, as well as the difference between them.

If you are in the insurance market, you may have heard the terms “broker” and “agent”. Although both are professionals in the insurance industry, these two positions have certain differences.

Insurance brokers and agents act as intermediaries between buyers and insurers. Both must have the appropriate licenses to distribute the insurance they sell, respecting the laws or regulations imposed by local insurance services.


The main difference between insurance agents and brokers is the person they represent. In other words, the insurance agents represent the seller, that is, the insurance companies. There are captive agents representing a single seller. In addition, there are independent agents who represent several insurers. In each of these cases, insurance agents are authorized by insurance companies to conclude contracts on their behalf. Insurance companies have agreements with insurance agents that allow them to take certain types of predefined risks on behalf of the insurer.


Insurance agents have the power to sell and sometimes adjust coverage on behalf of one or more insurers, usually with the goal of maximizing insurer sales and profits. Here are some important features that differentiate insurance agents:

An agent is captive or independent. Captive agents are those who can represent only one insurer, while independent agents represent several insurers.
Agents act on behalf of insurers, not the purchaser. Your objective is to adapt it to the cover of the insurers they represent.
Some agents, but not all, may “link” coverage in certain circumstances. This allows buyers to obtain coverage before the insurance company finishes processing the application and issuing the policy documents.
Agents get a stable commission from the insurers they are hired with; Captive agents are sometimes paid.