What is the primary role of an insurance agent?

The primary role of an insurance agent is to represent another person or firm in performing functions related to insurance transactions. This includes advising clients on various insurance products, helping them understand different policies, and facilitating the procurement of coverage appropriate to their needs. Insurance agents serve as intermediaries between clients (the insured) and insurance companies (the insurers), ensuring that the clients receive the best possible coverage while also meeting the insurance company’s requirements.

While negotiating between clients and policyholders might be part of an agent's responsibilities, it does not encompass the entire role. The agent’s duty involves broader functions such as educating clients, providing counsel, and managing relationships to ensure proper service delivery. Acting solely on behalf of one insurer restricts the agent's ability to offer a range of options to clients, reducing their effectiveness in representing client interests. Additionally, determining premium rates is typically the responsibility of insurers, not agents, who work with these established rates to find suitable coverage for their clients.