In the insurance field, what does "broker" refer to?

In the insurance field, the term "broker" specifically refers to a firm or individual that sells insurance policies on behalf of multiple insurers. Brokers act as intermediaries between clients seeking insurance coverage and insurance companies that provide policies. Their role is to understand the unique needs of their clients and offer suitable options from various insurers, allowing clients to make informed decisions based on available choices and pricing.

In contrast, an exclusive agent represents only one insurance company and can only sell that company's policies, limiting the options for clients. The role of managing claims is typically associated with claims adjusters, not brokers. Underwriters are responsible for evaluating the risks associated with an insurance application, determining coverage eligibility, and setting premiums, which is distinctly different from the broker's function of facilitating policy sales.