A wide variety of legal definitions exists across the EU. In general terms, however, they reflect the following:

 

î  Insurance agents are, in general, licensed to conduct business on behalf of insurance companies.  Agents represent the insurer in the insurance process and usually operate under the terms of an agency agreement with the insurer.  The insurer-agent relationship can take a number of different forms (tied, multiple agent, ...). 

 

î  Insurance brokers work for the policyholder in the insurance process and act on behalf of the client.  Brokers assist clients in the choice of their insurance by presenting them with alternatives in terms of insurers and products.  Acting as “agent” for the buyer, brokers usually work with multiple companies to place coverage for their clients.  Brokers obtain quotes from various insurers and guide clients in determining the adequate policy from a range of products.  While most, if not all, brokers are active in commercial lines, some are also insurance intermediaries for personal lines policies.  There are also distinctions between “retail brokers”, who negotiate insurance contracts directly with consumers, and “wholesale brokers”, who negotiate insurance contracts with retail brokers and agents, but not directly with consumers.  Reinsurance brokers solicit, negotiate and place reinsurance cessions and retrocessions on behalf of ceding insurers seeking coverage with reinsurers.  Reinsurance brokers can also be involved in a reinsurer’s retrocession of parts of his risk.