INSURANCE DISTRIBUTION
Agent definition
An agent is an insurance intermediary that acts on behalf of an insurer or reinsurer to solicit, negotiate or effect insurance contracts.
In practice, this means an insurance agent is an individual or an organisation that solicits, negotiates or effects contracts on behalf of a principal (an insurer or reinsurer). An agent typically holds the right to carry out certain tasks and functions on behalf of its principal. This gives insurers, brokers, reinsurers and risk managers a shared way to discuss the concept when reviewing policies, claims, regulation or market data.
This term is especially useful in insurance distribution, broking and delegated authority arrangements. It helps users interpret insurance terminology consistently across markets, policies and risk data. It also helps users compare how insurance is structured, regulated, priced or claimed across different markets.
Agent is closely related to broker, tied agent, independent agent and agency agreement. Linking these concepts together helps build a clearer glossary structure and gives readers a stronger understanding of how individual insurance terms connect within wider international insurance practice.
At a glance
- Used in
- Insurance distribution, broking and delegated authority arrangements.
- Purpose
- Helps users interpret insurance terminology consistently across markets, policies and risk data.
- Important because
- Clear definitions support better comparison of insurance products, market practices and regulatory requirements across jurisdictions.
- Related terms
- broker, tied agent, independent agent and agency agreement.
Example of an agent in insurance
A business asks an insurance intermediary to arrange cover. The intermediary’s role determines whether they act on behalf of the insurer, as an agent, or on behalf of the client, as a broker.