Insurance Agency – An Insight

An insurance agency, sometimes also called a broker or independent broker, brokers, collects, writes and secures policies for a variety of insurance providers through a variety of insurers. However, they are not directly affiliated with any single insurance company. Insurance agencies have been in business since the earliest days of the insurance industry and have always had the option of being brokers or agents. This option was only open to those who had completed a four-year degree at an accredited university or college and were either licensed by the state to work as brokers or by the federal government. see here for more info on this.

Insurance agencies play an important role in the business of insurance by brokering policies for customers and acting as a liaison between the insurer and the customer. Brokers facilitate the sale of insurance by working with the carrier and negotiating a price. They also provide referrals to the insurer, maintain regular contacts with the insurer and report any changes in policy coverage or rates to the broker. Agents work on commission, but since their work is not confined within the office or premises of a single insurance company, commissions can vary depending on the carrier, the broker and the terms of the policy. They are required to keep detailed books of all business transactions and pass along relevant information to the carrier and their client.

Insurance agents can be found working independently or as part of a large firm and can be located anywhere there are insurance agencies. Some independent agents work for just one specific company, while others work for a number of insurance companies and/or brokers. Some people choose to start their own insurance agency by purchasing an existing brokerage firm or forming a new independent brokerage firm. Others work for larger firms, where they are responsible for finding, securing and servicing a variety of insurance policies for their clients.