Superquote Terms: Insurance Broker

An insurance broker is a company who represnt their clients in arranging cover with insurers.  A broker typically has access to many schemes and can therefore compare products for their clients.  Some brokers are able to advise, others simply present the comparison to their clients.

Many brokers, particularly larger brokers or intemediaries are able to get involved in the design of products for their clients.  They also have some basic underwriting capabilities being given permission to make such decisions by the insurer.  This is sometimes referred to as being 'given the pen'

A broker earns money on the basis of commission from each product sale.  The level of commission can vary by each product.  A broker may also charge administration fees for handling a clients business.