Elements of insurance

Here’s an easy way to understand the various elements of insurance:


The underwriter is the manufacturer of the insurance product. They design the policy, decide what to include in it (what to ‘cover’), and work out what they need to charge to make a profit (premium collected vs. risk of paid claims).


The administrator (like Finrite) is the distributor of the insurance product. They handle phone calls, process applications, administer policies and more. They also work alongside agents and brokers.


The agent is the retailer of the insurance product. They market policies, help customers to find the right product to meet their needs, answer questions, submit applications, and collect payment.


The broker is the commercial representative who acts as an agent for other parties. Brokers represent insurance companies. A broker might sell insurance for only one company or represent several different ones.