Broker
An intermediary acting for the insured in placing the risk.
Definition
A licensed intermediary who presents the risk to underwriters, negotiates terms and places the cover on behalf of the client. A broker does not carry risk. In most jurisdictions broking is a regulated activity requiring authorisation — state producer licensing in the United States, and authorisation under the Insurance Distribution Directive regime in the European Union.
Why it decides money
Knowing whether the party you are dealing with carries the risk or arranges it tells you who pays your claim, and who is answerable if the cover was arranged badly.
Related terms
- Underwriter
- The person or entity that accepts the risk and sets the price.
- Managing general agent
- Underwrites on delegated authority from an insurer.
More in market and parties
InsuranceScanner is an insurance intermediary, not an insurer — see the Terms for our role. Nothing here is a personal recommendation that a particular cover, sum insured or deductible is suitable for you. Where anything on this page conflicts with the certificate, policy schedule or wording issued by an insurer, that document governs.