In the context of the insurance industry, who does a broker represent?

In the insurance industry, a broker represents the client. This means that brokers act as intermediaries who work on behalf of individuals or businesses seeking insurance coverage. Their primary role is to identify the best coverage options available in the market to meet their clients' needs, provide expertise on policy details, and help with the process of purchasing insurance.

By representing the client, brokers prioritize the client's interests and strive to secure the most favorable terms and conditions. They are guided by a fiduciary duty, meaning they must act in the best interest of their clients, which establishes a trust-based relationship. This contrasts with agents, who may represent the insurance companies and have a duty to those companies rather than the clients.

The other choices do not accurately reflect the broker's role. While an insurance company seeks to protect its own interests, regulatory agencies enforce rules and standards, and claims adjusting firms handle specific claims events, brokers serve primarily to advocate for the client's insurance needs in the marketplace.