How Are Insurance Agents And Brokers Different?
Although both insurance agents and insurance brokers are licensed by IRDA and specialized in selling insurance products and earning a commission, there is a certain uniqueness in how the industry perceives them. We’ve compiled key differences which sets the two profiles apart.
Who are Insurance Agents?
Insurance agents are persons who are licensed by the authority to solicit insurance business relating to renewal, continuance, or revival of insurance policies. Agents fall into two categories – Individual agents and corporate agents. Individual agents are individuals who represent an insurance company while corporate agents are intermediaries (other than individuals) who represent an insurance company.
How are Insurance Agents different?
- They only promote and sell the products for a single insurance company.
- They act as an intermediary between the company and the client.
- They sell various insurance products like health insurance, life insurance, auto insurance, and many more.
- They register with an insurance company, acquire training from them, take an exam and clear it to get a license.
- They have comprehensive knowledge about products offered by their companies.
- They have a relatively stable income. They may get extra compensation based on their performance.
- They can provide personalized service to customers due to a limited customer base.
- They have limited business extent as they work with the products of only one company.
Who Are Insurance Brokers?
Insurance brokers are persons who are licensed by the Insurance Regulatory and Development Authority (IRDA) who organizes insurance contracts with insurance companies in place of the clients.
How Are Insurance Brokers Different?
- They promote and sell products from different insurance companies.
- They work independently between the company and the client.
- They sell and negotiate insurance compensation on behalf of the client.
- They use external courses and experiences to train themselves, get passed an exam, and retain a minimum capital as per regulations to get a license.
- They have in-depth knowledge of multiple products in the insurance industry. They’ll have to explain many products to identify what suits best for clients’ needs.
- They experience variations in their income based on the type of policies sold. They can advise their customers about the products they sell and ask for commission from companies.
- They have wide customer base preventing them from offering personalised service to customers.
- They have wide business exposure since they have access to various insurance products in the market.
Both the insurance agents and brokers can experience rewarding careers with unlimited income potential, without no doubt! In order not to miss out any sales opportunities, take full advantage of SIbro to follow up on client calls, keep track of sale activities, and many more.