Brokerage refers to the business function and legal arrangement that mediates insurance sales, placement, renewals, and servicing between carriers and clients.
What it includes
At minimum, brokerage includes risk intake, quoting, application support, binder and policy issuance support, and post-issue policy maintenance. Strong brokerage firms add risk reviews and coverage comparisons.
Value to market participants
For insureds, it improves access to product choice and pricing options. For carriers, it supports better customer fit and policy persistence. For brokers, it requires service discipline and regulatory governance.
Claims relevance
A good brokerage team reduces disputes from incomplete disclosure by maintaining clear application files and coverage statements before claims arise.