Who does an insurance agent represent?

An insurance agent represents the insurer. This relationship means that the agent works on behalf of the insurance company to sell its products and services. The agent has a contractual obligation to the insurer and is responsible for understanding and promoting the policies offered by the company they represent.

An important aspect of this role is that agents must uphold the interests of the insurer while also providing clients with accurate information about the policies. Even though agents often assist clients in selecting the right coverage and providing advice, their primary allegiance lies with the insurance company. This duality can sometimes lead to confusion regarding the agent's role; however, their primary goal is to facilitate transactions on behalf of the insurer rather than act solely on behalf of the client.

This dynamic is crucial to understanding the roles within the insurance industry, where agents are often seen as intermediaries who bridge the gap between customers and the insurance company, but ultimately serve the latter's interests.