What Is an Insurance Broker?

Insurance Broker Definition

An insurance broker has access to several different insurers that they use to shop for the best coverage for their clients. Insurance brokers work in all areas of insurance, including home, auto, and business insurance. Insurance brokers can work individually, or with an organization that employs multiple insurance brokers and support staff.

When you work with an insurance broker, you have more options!

When you are deal directly with one insurance company, you will only have access to that particular insurer’s plans and coverage packages. An insurance broker has access to several insurers, and has a good working relationship with each of them. This means that when you work with a broker, you have access to more options for coverage, and are more likely to find the coverage you want at the best possible price. A broker is your personal insurance advocate.

One of the greatest advantages of having a broker is having them there for you should you need to process a claim. A broker will first tell you if its advisable to file a claim in the first place, and then help you with that claim if you do need to file. They know who to talk to at your insurer and what information you need to provide in order to get your claim processed as quickly as possible.


Carl and Madison are a couple looking for auto insurance for their vehicles. Carl has had one at-fault accident, while Madison’s record is accident free. They know they’ll have to call around to many different insurance companies to get quotes, but they’re both busy professionals. Carl’s friend Mike suggests going to a broker, who does the legwork for them and finds them the coverage they want within a couple of days.

Have more questions? Contact Us for more details on Insurance Brokers.

Insurance Broker Tips from First Foundation

Deal With an Accredited Insurance Broker

Insurance brokers in Alberta are required to undergo a rigorous certification process and are encouraged to participate in professional development activities once they obtain their license. Licenses are issued by the Alberta Insurance Council (AIC), and practicing brokers will usually have a Level 1 or Level 2 license. They may also have the following designations from the Insurance Brokers Association of Canada (IBAC):

  • CAIB (Canadian Accredited Insurance Broker)
  • CPIB (Canadian Professional Insurance Broker)
  • CCIB (Canadian Certified Insurance Broker)

It isn’t necessary for a broker to have these designations to practice in Alberta, but a Level 1 or 2 license from the AIC is required.

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Last updated Feb 11, 2019