Who represents the client in an insurance transaction?

In an insurance transaction, the broker acts as the representative of the client. Their primary role is to understand the needs and requirements of the client and to find suitable insurance products that match those needs. Unlike agents who represent the insurance company, brokers are independent and can offer a range of policies from various insurers. This independence allows them to provide a more objective perspective and serve their client’s best interests by shopping around for the most favorable terms and coverage.

The insurer, on the other hand, is the company that provides insurance coverage and is primarily focused on their own interests, outlining policies and terms, and does not represent the client. Claims adjusters are responsible for evaluating claims made by policyholders but do not fulfill a representation role in the insurance transaction itself. Similarly, underwriters assess the risk associated with insuring a client to determine terms and pricing but are not client representatives. Therefore, the broker is uniquely positioned as the advocate for the client throughout the insurance process.