Definition - What does Intermediary mean?
An insurance intermediary is a broker or an agent who represents a consumer in an insurance transaction. Insurance can be defined as a form of risk management where the party being insured transfers the cost of possible loss to another entity, basically the insurance company, in exchange for monetary compensation. When dealing with insurance transactions, there is usually an intermediary, be it an insurance agent or an insurance broker.
Insuranceopedia explains Intermediary
The insurance intermediary has the distinct role in the transactions, which include:
- Providing all material related to the proposed coverage in order to enable the prospect to choose the best option for their needs.
- Advising the prospect with complete transparency and disclosure.
- Ensuring effective coordination between the customer and the insurer.