The difference between insurance agent and broker: Everything you need to know

8 minute read Published on Oct 9, 2025 by BrokerLink Communications

Wondering what's the difference between broker and agent in insurance? We have the answers for you.

As of 2024, there were 23,404 insurance brokers and agencies operating across Canada, signifying a 3.5% increase from 2023. Anytime you purchase coverage--whether it be home, business, or car insurance--you have the option of buying it through an insurance broker or an insurance agent. Both will result in you purchasing insurance products, but there are a few key differences in the ways these insurance professionals operate and can help you along the way.

If you're planning on getting insurance in the near future, knowing how insurance brokers and insurance agents operate within the insurance industry can help you acquire the best coverage for your specific needs.

Insurance agents vs. Insurance brokers

Before we get into the major differences between brokers and agents, let's take a closer look at what each of these professional roles entails:

Insurance broker

Think of insurance brokers as independent contractors. Insurance brokers typically work at brokerages, such as BrokerLink, and possess extensive knowledge of the insurance industry and the current market. Unlike agents who specialize in their company’s specific offerings, insurance brokers have a high degree of knowledge about multiple companies’ offerings.

They also have relationships and connections with many of the top insurance providers in the area, which allows them to find policies that suit their customers’ needs. Like agents, insurance brokers are also licensed and subject to strict regulations, so customers can feel safe and secure when they purchase insurance through a broker or an agent.

However, unlike agents, insurance brokers may work on commission. This commission is paid by the insurance company that the customer ends up purchasing a policy from.

Insurance agent

An insurance agent is a licensed individual who sells insurance policies on behalf of a specific insurance company. Insurance agents are provincially licensed and highly knowledgeable about the specific insurance products offered by their insurance company. Insurance agents are salaried employees who are trained to sell a provider’s full list of product offerings.

Hypothetical scenarios & usage examples

To give you a better idea about how agents and brokers work, let's take a look at a couple of hypothetical scenarios that could help you decide which professional to work with:

Scenario 1: First-time home buyer

Jane is a first-time home buyer, unsure how home insurance coverage works. She wants to make sure she gets the right insurance without having to overpay for coverage. In this case, working as an insurance broker is ideal. A broker can help her compare rates and coverage options from different insurance providers, explain the pros and cons of each policy, and customize a plan that fits her needs and budget. This will save her time and potentially hundreds of dollars on her coverage.

Scenario 2: The long-time loyal customer

David has been with one insurance company for over 15 years. He knows his agent personally and trusts the advice they provide. Over the years, his insurance company has given him consistent support during any claim, and he's earned loyalty discounts on his premiums. For David, sticking with his current provider and agent makes sense, given that he has a good working relationship with them and he benefits from the convenience of discounts for being a long-term customer, which may not be available elsewhere.

Scenario 3: The business owner

Jennifer runs a small business storefront with three employees who rely on delivery trucks for their daily operations. Her coverage needs include auto insurance, property coverage, liability, and more. Because she has complex insurance needs, working with a broker can help Jennifer customize her policy and make changes in the future as her business grows.

Industry trends & statistics

The Canadian insurance market continues to evolve, with new data indicating growth, challenges, and shifts that impact how customers interact with brokers and agents:

Market size & growth

According to Global Data, the insurance industry in Canada is expected to grow at a 6.0% compound annual growth rate, with gross written premiums rising from $86.75 billion in 2024 to $115.82 billion by 2029.

Insurance demographics

As of 2021, life and health, along with property and casualty (PC) brokerages in Canada, had a 60% employment rate for women, in contrast to 48% for the average industry in Canada.

Trends & challenges

According to Statista, in 2024, health and auto insurance were the two most popular types of policies purchased by Canadians. However, when it comes to insured losses, a whopping $8.5 billion was paid out under home insurance plans, due to severe natural disasters like floods and wildfires.

So, what was the most pressing concern in the insurance industry in 2024? Canadian Underwriter reports that 69% of brokers cited talent acquisition, with economic issues ranking second at 54%.

Common misconceptions about insurance brokers and insurance agents

When it comes to buying insurance, insurance buyers often have some misconceptions about the role of agents and brokers. Let's get to the bottom of these misunderstandings so you can make a more informed decision:

"Insurance brokers are more expensive"

This is a common myth. In reality, insurance brokers can help you save on your coverage. Insurance brokers typically work on your behalf, helping you shop around, unlock potential savings, and customize your insurance to fit your needs and budget. While some insurance brokers may charge a broker's fee, most work free of charge and receive a commission from the insurance company.

"Insurance agents don't offer competitive pricing"

Although insurance brokers represent you as a customer and provide access to several insurance companies, it doesn't automatically make agents more expensive. A lot of agents represent renowned insurance companies that offer discounts on your coverage, such as bundling your car insurance policy with your home and business coverage, being a loyal customer, and more.

Additionally, it’s important to remember that insurance companies work by assessing your risk level as a customer, so your rates are directly linked to numerous unique factors depending on what type of insurance you’re looking to buy.

"Brokers don't help with the claims process"

Some Canadians assume that once they've purchased their insurance through a broker, they're on their own when it comes to filing an insurance claim. In truth, many brokers go above and beyond to support customers through the claims process by helping them understand their coverage, collect information, and answer any questions to ensure the process is as smooth and efficient as possible.

Insurance agent vs. Insurance broker: Pros and cons

While insurance brokers and insurance agents offer operational support throughout your insurance journey, there are some pros and cons to both that you should be aware of moving forward:

Insurance Agent

Insurance Broker

Pros

Buy insurance directly from a single insurance company (removes the middleman).

Insurance brokers represent you, not the insurance provider.

Insurance agents have extensive knowledge of the insurance products from their company, allowing for a quick purchase process.

Can help you shop around with several different insurance companies to find the best insurance policies and premiums available.

Purchasing insurance can be done online, over the phone, or in person.

Insurance brokers can offer tips to help you save money on your insurance coverage.

Insurance agents do not require you to pay a fee for their services.

Can find specific coverage to meet your coverage needs.

Do not require a fee for services.

Cons

An insurance agent represents the insurance company, not you as a customer.

May not have in-depth knowledge about specific insurance policies.

May not offer you the best deals or coverage options when they sell policies.

Less likely to offer tips to save money on your coverage.

How to compare insurance quotes from different insurance companies

Regardless of whether you choose to work with insurance professionals, selecting the right insurance products for your needs and budget can feel somewhat overwhelming. To make the entire process a lot easier for you, here's a practical step-by-step you can use to compare insurance quotes from several providers and save on your insurance coverage:

Step 1: Gather your information

Start by collecting all of your details. For example, if you're buying home insurance, you'll need your home's square footage, address, materials, safety features (smoke and security alarms), and more. For auto insurance, you'll need to collect information on your vehicle's make, model, year, VIN, and your driving history.

You also want to think about the type of insurance policy you need and what deductible you can afford.

Step 2: Contact insurance agents and insurance brokers

With this information in mind, we recommend reaching out to both insurance brokers and insurance agents to get a more comprehensive look at your options. An insurance broker can help you shop around with multiple insurance companies, while an insurance agent can give you an in-depth look at the insurance options offered by their specific insurance company.

By talking to both, you'll get a better sense of the insurance policies available and how they're priced.

Step 3: Request a quote and compare insurance policies

Request detailed quotes from all insurance providers. Don't just look at the price you're quoted upfront; review coverage amounts, deductibles, inclusions, exclusions, the option to add additional insurance policies, and the terms and conditions of each insurance plan.

Step 4: Evaluate services and reputation

Research and review the services and reputations of one or more insurers. How do they handle their insurance claims process? Do they have good customer service reviews? Do they offer more specialized insurance products? A slightly more expensive policy may be worth it if the insurance company is known for excellent service.

Step 5: Make an informed decision

Compare your findings. Choose a deal that balances affordability and protection based on your coverage needs.

Is it better to buy insurance online, through an agent, or with a broker?

All are great options — it comes down to what you prefer and your personal preferences for service.

Can I switch from an agent to a broker (or vice versa)?

Yes, you can switch from an agent to a broker any time you need to renew your insurance policies or purchase new coverage.

How do brokers get paid?

Brokers receive salaries from their employer, typically the brokerage, while some brokers may earn commissions based on the policies they sell; not every brokerage offers this service. It is essential to understand that while brokers may receive a commission, it is often deducted if a policy is cancelled within the first year.

Will an agent always give me the best price from their company?

It depends on the agent. If you've known your agent for years and have remained loyal to their company, they may be more likely to give you a deal on your insurance than an agent you've just met.

Need help buying insurance coverage? Contact BrokerLink today!

Understanding the key differences between insurance brokers and agents can help you make a smarter, more confident decision when it comes to your insurance journey and coverage. Brokers work independently to find the best coverage available to you across multiple providers, while agents offer knowledge and provide coverage from one company. Each option has its benefits and drawbacks depending on your needs and preferences.

Do you need an insurance broker? Whether you’re looking to save money, tailor your coverage, or simply get expert advice, the experienced brokers from BrokerLink are here to help. Whether you need a broker for home insurance or a broker for car insurance, our team can help customize your coverage and ensure you save as much money as possible on your plan.

BrokerLink has insurance brokers in Ontario, Alberta, Nova Scotia, and other provinces, ensuring Canadians can find affordable coverage no matter where they are.