Duty Of A Broker

A broker is the middle man between the insurance company and the person buying the insurance. So the broker has obligations to both sides.

The insurance company depends on the information gathered by the broker when determining the premium to charge. The broker has a duty to act within the agreement between the insurance company and their agency. The broker can develop a strong relationship with the underwriter by demonstrating the reliability of their information and work as a partner with the insurance company.

The broker has a duty to their client. This duty is to provide them with good advice, presenting them with the options best suited to their needs. A client has to trust that their broker is competent,concerned with their best interest and openly communicates the necessary information.

The broker also has a responsibility to the insurance industry as a whole. A broker has to act as a professional and practice ethical behaviour.