Insurance Broker

An insurance broker is an independent intermediary that represents the interests of the insured (typically foreign trade enterprises or cargo owners), negotiates with insurance companies, and arranges insurance contracts. In foreign trade, it is commonly involved in cargo transportation insurance (e.g., under CIF or CIP terms where the seller insures, but the buyer may also engage a broker) and export credit insurance. Its core duties include designing insurance solutions based on client needs, comparing quotes from different insurers, assisting with claims, and collecting commission from insurers (not charging clients). Unlike an insurance agent, who represents the insurer's interests, a broker represents the client's interests and therefore owes a duty of care to the client. Note: When choosing a broker, verify their qualifications (e.g., in China, they must hold an insurance brokerage license); although the broker represents the client, commissions are paid by insurers, which may create conflicts of interest, so assess whether recommendations are objective. Compared with buying directly from an insurer, a broker offers broader market access and professional negotiation, but the client should still review policy terms.