What does an Insurance Broker do?

An insurance broker is someone who specialises in risk management and insurance. A qualified broker has in-depth knowledge of all aspects related to risk management. These aspects include risk management, the insurance market, and the insurance policies that are available to their clients. 

Brokers act on behalf of their clients and consult with them to identify the personal or business risks they face. Then, they help their clients manage their risks and protect their assets through insurance or other ways. 

In some cases, a broker acts as an agent of an insurer. A broker may also specialise in a specific type of insurance, for example, property insurance or life insurance. 

Ideally, a broker should know the benefits, exclusions, and terms and conditions of competing policies so they can help their clients find the best one for their needs. If their clients want to file a claim, a broker will also assist them with the procedure and technical advice. 

How to Choose a Broker 

Unlike an insurance agency, an insurance broker represents you and your interests. A broker will negotiate the insurance price for you. The advantages of choosing the right broker are that you will have sufficient coverage for your property, and you will not end up with a hefty repair bill when disaster strikes. 

To choose the best broker, start by determining the coverage you need. Use the National Insurance Brokers Association (NIBA) Need-a-Broker service to find a broker in your area with a license and a NIBA membership. Make sure that the broker you appoint has the necessary know-how to help you with your insurance requirements. 


The insurance broker you choose in Australia should have an Australian Financial Services (AFS) license. A broker can also be an authorised representative of an AFS license holder.

Additionally, all brokers should meet the Corporations Act 2001 (Cth) (Corporations Act) standards. In terms of their AFS license, brokers also have to be members of an authorised external dispute-resolution scheme. The Australian Financial Complaints Authority (AFCA) resolves matters between brokers and their clients, and brokers have to adhere to this organisation’s decisions.

Related: Life Insurance Broker

Greg Maguire

Greg Maguire

Greg is an experienced Insurance Broker in Perth, WA, with an Advanced Diploma of Financial Planning from Deakin University and a Bachelors Degree from Edith Cowan University. He is a member of the Chamber of Commerce & Industry WA and Baldivis Rotary, as well as Vice President of the local high school's Parents & Citizens Association. Greg provides personalised and dedicated services to his clients that bigger firms are unable to match.