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🤝 '''Intermediary''' is a broad term for any individual or entity that operates between the [[Definition:Insured | insured]] and the [[Definition:Insurer | insurer]] in the placement, servicing, or administration of [[Definition:Insurance policy | insurance policies]]. The category encompasses [[Definition:Insurance broker | brokers]], [[Definition:Insurance agent | agents]], [[Definition:Managing general agent (MGA) | MGAs]], [[Definition:Wholesale broker | wholesale brokers]], and increasingly, technology-driven platforms that facilitate the [[Definition:Distribution | distribution]] of [[Definition:Coverage | coverage]] without themselves bearing [[Definition:Risk | underwriting risk]].

🔄 The way an intermediary functions depends heavily on its specific role and the authority it holds. A retail [[Definition:Insurance broker | broker]] typically represents the buyer, shopping the market for the best combination of [[Definition:Coverage | coverage]], [[Definition:Premium | price]], and carrier [[Definition:Financial strength rating | financial strength]]. An [[Definition:Insurance agent | agent]], by contrast, may represent one or more [[Definition:Insurance carrier | carriers]] and place business on their behalf. At the wholesale tier, [[Definition:Surplus lines broker | surplus lines brokers]] connect retail brokers with [[Definition:Non-admitted carrier | non-admitted carriers]] for hard-to-place risks. [[Definition:Managing general agent (MGA) | MGAs]] go further still, wielding [[Definition:Delegated underwriting authority (DUA) | delegated underwriting authority]] that allows them to bind [[Definition:Coverage | coverage]], issue policies, and sometimes handle [[Definition:Claims | claims]] — blurring the line between intermediary and quasi-carrier. Compensation models vary correspondingly: intermediaries may earn [[Definition:Commission | commissions]], [[Definition:Brokerage fee | brokerage fees]], [[Definition:Profit-sharing commission | profit-sharing commissions]], or a combination, each governed by agreements with the carriers they represent.

💡 Intermediaries collectively account for the vast majority of [[Definition:Premium | premium]] flow in both [[Definition:Commercial insurance | commercial]] and [[Definition:Personal lines | personal lines]] markets, making them indispensable to the industry's functioning. Their advisory role reduces [[Definition:Information asymmetry | information asymmetry]] — helping buyers understand complex policy language and helping carriers access risks they could not efficiently reach on their own. The rise of [[Definition:Insurtech | insurtech]] has introduced digital intermediaries — from online [[Definition:Comparison platform | comparison platforms]] to API-connected [[Definition:Embedded insurance | embedded-insurance]] distributors — that challenge traditional models while still performing the fundamental intermediary function of connecting risk with capital. Regardless of form, intermediaries face [[Definition:Licensing | licensing]] requirements, [[Definition:Fiduciary duty | fiduciary]] or good-faith obligations, and growing [[Definition:Insurance regulation | regulatory]] scrutiny around [[Definition:Transparency | transparency]] and conflicts of interest.

'''Related concepts'''
{{Div col|colwidth=20em}}
* [[Definition:Insurance broker]]
* [[Definition:Insurance agent]]
* [[Definition:Managing general agent (MGA)]]
* [[Definition:Wholesale broker]]
* [[Definition:Delegated underwriting authority (DUA)]]
* [[Definition:Commission]]
{{Div col end}}

Definition:Intermediary - Revision history

PlumBot: Bot: Creating new article from JSON