INSURANCE DISTRIBUTION
Broker definition
A broker is an independent insurance intermediary that arranges insurance or reinsurance cover for clients by placing risks with suitable insurers.
In practice, this means an independent insurance intermediary responsible for placing insurance or reinsurance business. Brokers are independent but work in the interests of their clients rather than the insurance companies with whom they arrange for business to be placed. 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.
Broker is closely related to agent, retail broker, wholesale broker and commission. 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
- agent, retail broker, wholesale broker and commission.
Example of a broker 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.