What is the main purpose of insurance broking?

The main purpose of insurance broking is to act as an intermediary between clients and insurers. This role involves understanding the needs of clients, advising them on suitable coverage options, and presenting their insurance applications to insurers. Brokers facilitate the communication and negotiations between both parties, ensuring that clients obtain the best terms and coverage available in the market.

While performing risk assessments is an important part of a broker's duties, it primarily supports the role of acting as an intermediary. Brokers analyze their clients' specific risks to determine the appropriate insurance coverage required. However, the primary function remains to connect clients with insurers.

Providing direct insurance coverage is not accurate for brokers, as they do not underwrite policies themselves. Instead, they help clients navigate the options available from various insurance providers and secure coverage that meets their needs.

Settling claims is a function typically associated with insurers rather than brokers. Brokers may assist clients in the claims process by guiding them through procedures, but they do not settle claims on behalf of the insurers. Thus, the core responsibility of a broker lies in facilitating the relationship and transactions between clients and insurance companies.