Intermediary

What Does Intermediary Mean?

An insurance intermediary is a broker or agent who represents a consumer in an insurance transaction. Insurance is a form of risk management in which the insured party transfers the financial burden of potential loss to an insurance company in exchange for monetary compensation. In most insurance transactions, there is typically an intermediary involved, whether it be an insurance agent or broker, to facilitate the process. When shopping for coverage, working with an intermediary can help you make sense of quotes from the best car insurance companies and figure out which policy actually fits your situation.

Insuranceopedia Explains Intermediary

The insurance intermediary plays a crucial role in transactions, which includes:

• Providing all relevant information about the proposed coverage to help the prospect select the best option for their needs.
• Advising the prospect with full transparency and disclosure.
• Facilitating effective communication and coordination between the customer and the insurer.

Given these duties, an intermediary is especially useful for less familiar purchases, such as helping a first-time buyer work out how to choose the right life insurance policy based on family needs and budget.