Agent -vs- Broker

Having been in the business for 8 years I believe I can honestly have something to say about this. I have been and agent for companies and now I am a broker for my clients. It really depends on who you ask which is better for the client. The agent will say he is better and the broker will in turn say he or she is. Being a broker I will state that a broker is better for the client than an agent.

The Agent
An agent represents a company’s interest and is compensated for that interest. If it is like this everywhere, a book of current business is given to the agent and he or she is told to go see them and introduce yourself, then when you are done there go knock on the doors next to them and across the street. “Create the need" or better yet “Scare them into the need" is the catch phrase I believe when it should be “Take care of the need." By that I mean take care of your people and they will take care of you. People do need to be aware of their needs but I have been around to many marketing schemes that were made to scare the client.
Another important point to be made is how many families is that agent feeding? More than likely that agent is not only feeding his or her own family but his sales managers’ and district managers’ and so on and so forth. So the next time you see an agent coming ask him how many families are being fed if you were to buy from him.

The Broker
A broker represents many companies with no centralized interest or compensation. The broker in turn is also compensated for their time and effort by the company that gets the business but that is just it, the company that gets the business. Whether you go to company A or B, you the client have the choice based on recommendations made by he broker.
The broker has the capability of finding the right mix for a client, for example, the client’s needs and budget. One company might come back with a mix of products at “X" amount of money a month. This option may be out of the clients reach due to budget constraints, well now the broker can switch to another company to find the most viable option.

The Client

The client is best served because it is not an all or nothing relationship as it is with an agent. The broker has the ability to shop around within his or her portfolio to find the best mix to meet the client’s situation. The broker acts as a go-between for the client and the company. I consider this a win-win situation. I believe that when one has the ability to shop for the client for the best product, the clients’ interest is at heart. A client that becomes a prospect six months later was never a client at all.

To be fair to all parties involved the company and client is only as good as its agent or broker. A bad one can break you and on the other had a good agent and broker can become your best friend and ally.

Raul Ramirez
http://www.gulfbreezeinsurance.com

» left by Anonymous 3 years 152 days ago.

How do you go from being an agent to being a broker? I am an indepenfent agent, but I would rather have more products to offer.

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» left by Stan from NY 1 year 345 days ago.

Anonymous it sounds like your a "captured agent" meaning you sell for 1 company. I am an independent agent and like a broker I sell for many companies.

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» left by Alex from West springfield,MA 1 year 231 days ago.

Independent agent is the same as a broker. You can represent as many companies as you want. You wanna sell Genworth? Call them up, fill out their contracting papers...and your now selling Genworth.

 

Some insurance companies wont want to deal with you directly. So they will refer you to someone who already represents them that will put you underneath them. Just be careful here, once your underneath someone...the only way out is if they sign a release, or if you drop that company for an extended period of time.

 

The best way to get more companies is to find someone whos willing to show you the ropes. This will save you alot of time and research. I found a guy who helped me start off with Final Expense, Term, and IUL. Shoot me an email if you want some more info.

 

-Alex-

 

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» left by nymphie from Philippines 1 year 144 days ago.

Hey Alex, I am rather a newbie in this field. I have companies who want me to represent their products, showed me pictures of their products and factory price lists. I just dont know what to do next or should I immediately sign their contracts or anything.

 

Any advise would be very much appreciated.

 

Please email me at campos_abellana @ yahoo . com

 

Thanks,

Nymphie

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