How do insurance brokers primarily operate in the insurance market?

Insurance brokers primarily operate by representing both the applicant (the client looking for insurance) and the insurer (the company providing insurance). This dual representation allows brokers to advocate for the needs and interests of their clients while also navigating the various options available from multiple insurers. Brokers have the advantage of accessing a wider array of policies and pricing, which can lead to better coverage suited to the client's specific needs.

By understanding the unique requirements of the applicant and the offerings of various insurers, brokers can facilitate a more informed and beneficial transaction. Their role is not to work for one specific insurer or be limited to government-sponsored options, which enhances their ability to provide customized solutions in the insurance marketplace. This approach fosters a more competitive environment, as clients can choose from different products tailored to their individual risk profiles and preferences.