What is the main function of a broker in the insurance industry?

In the insurance industry, the primary function of a broker is to act as an intermediary between the insurer and the insured. Brokers facilitate the purchasing of insurance by helping clients identify their insurance needs and finding suitable policies that meet those needs from various insurers.

Brokers do not typically underwrite insurance policies themselves; instead, they work with underwriters at different insurance companies to provide their clients with the best options. While managing claims processing is an important aspect of insurance, it is usually handled by the insurance companies, not brokers. Setting premiums based on risk assessments is the role of actuaries and underwriters within an insurance company, rather than brokers, who focus on connecting clients with the right insurance products. Thus, the correct choice reflects the broker's essential role in facilitating the relationship between the insured and the insurance provider.