The Detailed Comparison Between Health Insurance Agents and Brokers


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Buying health insurance has never been easier. Insurance companies now offer insurance online. You can log on to the website and search for the suitable insurance policy.
Once you have settled on the policy and the add-ons, you can make the payment and be covered immediately.

The Detailed Comparison Between Health Insurance Agents and Brokers

Most health insurance policies don’t even require medical tests to be done. Getting a health insurance policy was never this hassle-free and quick!

Also Read – How to Avail Medical Treatments Not Covered by Insurance in an Affordable Manner?

Who is a Health Insurance Agent?

A health insurance agent is a person who seeks clients, identifies their needs, and presents them with the best possible insurance policies. They work with insurer companies and represent them while interacting with policy buyers.

They have in-depth knowledge about the policies and how you can get best value for money. When dealing with health insurance agents, you are sure to get personalized attention. If you are a business owner, they can suggest the best policies within your budget. The biggest advantage of this position is that you have a guiding force in a crisis. You can turn to the health insurance agent for a faster and seamless process.

There are 2 types of health insurance agents – captive and independent insurance agents. The former represents only one insurer while the latter represents more than one insurer.

Captive insurance agents are provided salary and benefits by the company and cannot help individuals outside the scope of what the company offers. Independent insurance agents act as middlemen to connect brokers, various companies, and insurance buyers. They have a wide variety of products and have more options to offer that are value for money.

Independent health insurance agents have more connections and knowledge and offer a holistic view. Captive insurance agents are limited to the resources of a single company.

Also Read – How to Choose the Best Top-Up Health Insurance Plans in India?

Who is a Health Insurance Broker?

The job of an insurance broker is to represent consumers who are looking for insurance policies based on their needs. They are hired by customers or small businesses to identify a policy best fitting their needs.

Even though they can identify and suggest to the customer the right policy, they cannot complete the sale, they can only guide the customer through it. They have to hand over the portfolio to the agents or to the insurer to complete the sale.

Insurance brokers can be one person or an entire company that works together to simplify customer needs. A broker needs to be registered and needs to have a license to do this job.

Also Read – Brief Note on Health Insurance

Health Insurance Agents VS Broker

While buying health insurance, agents are representatives of the company that offers insurance and typically they coordinate with the policy buyers. The broker and the customer have a legal relationship and a broker imparts information on various policies and their comparisons as well.

These two terms have different meanings and have different roles. There are various reasons to opt for a health insurance cover but the primary agenda is to protect yourself against any medical emergencies. You can choose to buy health insurance from a broker or an agent. You can approach an agent when you have already decided on a particular insurer and want to explore the options they have.

Also Read – 7 of the Frequently Asked Questions on Life Insurance Policy

Difference between an insurance agent and a broker

Primary duty of the broker is towards the customer.Loyalty of the agent is towards the company they are representing.
A broker can only offer the information required for you to make a choice.An agent acts as a sales representative and promotes the interests of the company by identifying opportunities and trying to capitalize on the same.
Once you have settled on the policy, the actual paperwork is done by an agent.

They are also responsible for formalizing the agreement between the insurer and the insured. They are responsible for the consistent premium flow and other financial services as well.
One broker generally sells only one kind of product.They sell other products like property insurance and life insurance along with others of the company.
Insurance brokers charge a commission from the client on the deal being made.An insurance agent is paid by the insurance company as per the terms decided.
The brokers are issued a license by the Insurance Regulatory and Development Authority of India (IRDAI). In case of any problems, they can be directly reported to IRDAI and the necessary action is taken.If you face any issues with an insurance agent, you can take it up with the companies they represent. The company is expected to conduct an investigation and they can cancel the license of the agent in question if the same seems suitable.

Also Read – 7 of the Frequently Asked Questions on Life Insurance Policy

How to choose the right company to Join as an Agent?

The insurance industry has boomed in the past decade. Since this industry offers security, it is an industry which is unlikely to slow down. If you wish to take up a health insurance agent as a career option then there are a few things you might wish to remember before making a decision on which insurance company to work with.

The important things to consider are the financial position and strength of the company, along with the history and reputation of the company with other agents. The incentives and commission offered by the company along with opportunities should be fair and the company should facilitate and empower agents to ensure they perform to the best of their abilities.

This job profile requires a lot of skills and needs you to be updated at all times. It is an excellent opportunity to improve your knowledge as well as a safe job due to the surety of the thriving industry.

One of the best companies to work with Digit Insurance. It was named Asia’s General Insurance Company of the Year in 2019 and has an excellent support team that provides help round the clock. The paperless processes and instant issuance of policies coupled with quick commission settlement provide the perfect career chance.


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