What is the primary function of an insurance broker?

The primary function of an insurance broker is to act as an intermediary between clients and insurance companies. Brokers work on behalf of clients to understand their insurance needs and help them find the best policies that fit those needs from various insurance providers. By leveraging their knowledge of the insurance market, brokers can provide clients with a range of options and help them navigate the complexities of insurance products.

Brokers do not underwrite policies themselves, as that process is typically handled by insurance companies, which assess risk and determine the terms and pricing of a policy. Additionally, while brokers may assist clients with claims, managing claims processes is generally a function performed by the insurance companies directly. Similarly, setting insurance premiums is a responsibility of the insurers based on underwriting criteria and risk assessment, rather than the broker's role. Thus, the primary function focuses on facilitating a connection and ensuring clients receive the best insurance solutions available in the market.