What is the difference between an insurance broker and agent?
A broker represents multiple insurance companies and works on behalf of clients to find policies, while an agent typically represents a single insurer and sells only that company's products; in Ontario, brokers are regulated by RIBO (Registered Insurance Brokers of Ontario).
The distinction between a broker and an agent comes down to who they represent. An insurance broker in Ontario is an independent professional who represents the client first and shops policies across multiple insurers to find suitable coverage. An agent, often called a captive agent, represents one insurance company and sells only that insurer's products.
This difference matters legally and practically. Brokers in Ontario must be licensed through the Registered Insurance Brokers of Ontario (RIBO), which sets professional standards, requires continuing education, and enforces a code of conduct. Brokers operate as independent businesses or within brokerage firms and have a fiduciary duty to their clients. Agents may work for an insurance company directly or under contract to it, and they promote that single company's offerings.
For consumers in Toronto and across Ontario, the broker model typically offers more choice and the potential for competitive shopping, though fees and commissions vary. Agents provide focused expertise in their insurer's products and may be more familiar with claims handling within that specific company. Both play legitimate roles in the insurance market, but the legal framework and business model differ significantly. When seeking coverage, knowing whether you are working with a broker or an agent helps clarify their obligations to you and the range of options available.