Broker

A broker is a licensed professional who acts as an independent intermediary between clients and multiple insurance companies. Unlike agents who represent a single insurer, brokers work on behalf of their clients to compare policies, explain coverage options, and secure the best combination of benefits, price, and flexibility.

In health, dental, life, and group benefits, brokers play a key advisory role by assessing client needs, gathering quotes from several carriers, and presenting impartial recommendations. They help individuals and businesses understand complex policy details, manage renewals, and assist with claims when needed. Brokers are compensated through commissions paid by the insurance companies, not by the client, although they are legally required to prioritize the client’s best interests.

Brokers must be licensed through their provincial insurance council and maintain continuing education to stay current with regulatory and market changes.

Example:

If a small business wants to set up an employee health benefits plan, a broker can gather quotes from multiple insurers such as Sun Life, Manulife, and Canada Life, then explain differences in premiums, coverage, and flexibility before helping the business choose a plan.

What to Watch For:

Verify that your broker is licensed in your province and discloses any potential conflicts of interest. While brokers provide impartial advice, insurers may offer different commission structures, so transparency is important. Always ask for a clear explanation of how your broker is compensated and confirm ongoing service commitments after the policy is issued.