What does the term 'insurance intermediary' refer to?

The term 'insurance intermediary' refers to a broker or agent acting on behalf of insurers. These intermediaries play a crucial role in the insurance market by facilitating the sale of insurance products between insurers and policyholders. They assist clients in finding suitable coverage, offer advice on various policies, and help navigate the complexities of insurance terms and conditions.

Insurance intermediaries are essential because they bridge the gap between the consumers and the insurers, ensuring that policyholders can access the necessary information and options to make informed decisions about their insurance needs. They are typically licensed professionals committed to working in the best interests of their clients, which distinguishes them from policyholders or other parties in the insurance process. Other choices incorrectly describe roles that do not fit the definition of an intermediary. For example, an insurance company itself is the provider of coverage, while policyholders are the clients purchasing the insurance, and claims adjusters are responsible for evaluating claims after they are submitted, rather than brokering or facilitating insurance purchases.