Difference Between a Corporate Agent and a Broker for Insurance

by Chris MacKechnie ; Updated July 27, 2017

The U.S. insurance industry is a $149 billion behemoth that employs over 2.3 million people. A substantial number of these employees are in the business of selling insurance products. There are two principal insurance sales channels; independent brokers and insurance agents.

Independent Brokers

An insurance broker is an independent sales person who works for the customer. Insurance brokers normally have a relationship with a number of insurance companies and match the customer's insurance needs with the most appropriate insurance carrier. Insurance brokers make a commission on each sale, paid to them by the insurance company.

Independent Agent

An independent agent sells insurance products on behalf of one insurance carrier. An independent insurance agent normally works from a small or store-front office, and will include the insurance company brand on all marketing materials. Independent agents receive a commission from the insurance company on all policies sold.

Video of the Day

Brought to you by Sapling
Brought to you by Sapling

Corporate Agent

Similar to an independent agent, a corporate agent sells insurance products for one insurance carrier. Corporate agents normally do not have public offices, relying instead on telemarketing and online sales efforts funded by the insurer. Corporate agents are employees of the insurance companies and draw a salary for their efforts.

About the Author

Chris MacKechnie is a graduate of Carleton University's Law Program and has been writing professionally for more than a decade. He is a regular contributor for a number of travel and business magazines and marketing websites, including "OutPost Magazine," "Report on Business" and several insurance trade publications. MacKechnie also writes extensively for several Fortune 500 companies located around the globe.

Cite this Article A tool to create a citation to reference this article Cite this Article