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🤝 '''Client''' in the insurance industry denotes the party—whether an individual, business, or organization—that engages an [[Definition:Insurance broker | insurance broker]], [[Definition:Insurance agent | agent]], [[Definition:Managing general agent (MGA) | MGA]], or other intermediary for advice, placement, or servicing of [[Definition:Insurance policy | insurance]] or [[Definition:Reinsurance | reinsurance]] coverage. While the term is used broadly in commerce, it carries specific relational and regulatory significance in insurance because the intermediary's duty of care, [[Definition:Fiduciary duty | fiduciary obligations]], and disclosure requirements are shaped by whose client they are—the buyer's or the [[Definition:Insurance carrier | carrier's]].

⚙️ A [[Definition:Retail broker | retail broker]] typically owes its primary duty to the client seeking coverage: it must understand the client's [[Definition:Exposure | exposures]], recommend appropriate [[Definition:Coverage | coverage]] structures, present options from the market, and advocate on the client's behalf during [[Definition:Claims management | claims]]. In contrast, an [[Definition:Insurance agent | appointed agent]] may legally represent the insurer, making the carrier the agent's principal and the [[Definition:Policyholder | policyholder]] something closer to a customer than a client in the fiduciary sense. [[Definition:Reinsurance broker | Reinsurance brokers]] add another dimension: their client is typically the [[Definition:Cedent | ceding company]], and their role involves structuring and placing [[Definition:Reinsurance program | reinsurance programs]] that protect the client's balance sheet. Keeping these distinctions clear is not merely academic—they determine who bears liability when advice proves inadequate or coverage gaps emerge.

🏛️ Regulators across jurisdictions impose requirements on how intermediaries disclose their client relationships, compensation structures, and potential [[Definition:Conflict of interest | conflicts of interest]]. In the [[Definition:London market | London market]], for example, the status of the [[Definition:Placing broker | placing broker's]] client is formalized in [[Definition:Terms of business agreement (TOBA) | terms of business agreements]] that define the scope of services and remuneration. For [[Definition:Insurtech | insurtech]] platforms operating as digital brokers or agents, the client relationship model must be clearly established from the first digital interaction, as it governs everything from [[Definition:Suitability | suitability]] obligations to [[Definition:Errors and omissions insurance (E&O) | E&O]] exposure for the platform itself.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Insurance broker]]
* [[Definition:Policyholder]]
* [[Definition:Fiduciary duty]]
* [[Definition:Terms of business agreement (TOBA)]]
* [[Definition:Insured]]
* [[Definition:Duty of care]]
{{Div col end}}

Definition:Client - Revision history

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