Author Bowtie Team
Updated on 2025-05-28
Disclaimer: This article is translated with the assistance of AI.
Learn the differences between insurance brokers and agents. Bowtie Team compares their roles, qualifications, and commissions to help you understand your rights when buying insurance.
What is an Insurance Intermediary?
Insurance intermediaries are the collective term for insurance brokers and insurance agents. Although brokers and agents have different responsibilities and roles, both play important roles acting as intermediaries between the public and the insurance industry.
What Does an Insurance Intermediary Do?
Their main duties include selling insurance, arranging insurance contracts for potential policyholders, providing information and advice on insurance products or contracts, and assisting policyholders with claims as needed.
Why Should You Understand the Role of an Insurance Intermediary?
The insurance policy is not a contract between the insurance intermediary and the insurance company, but rather between the policyholder and the insurance company. Therefore, before purchasing insurance, potential policyholders have a responsibility to clearly understand the key points and the role of the insurance intermediary to protect their own interests.
Are Insurance Intermediaries in Hong Kong Regulated?
Whether insurance brokers or insurance agents, both are regulated by the Insurance Authority (hereinafter referred to as the IA) and the Insurance Ordinance.
The IA is an independent statutory regulatory body that regulates the insurance industry under the Insurance Ordinance (Chapter 41) and its subsidiary legislation.
It is also responsible for licensing insurance intermediaries and handling complaints related to misconduct by relevant practitioners, with the aim of protecting the interests of existing and potential policyholders and ensuring the stability of the insurance industry.
What is the Difference Between Brokers and Agents?
As of June 30, 2020, Hong Kong has over 800 licensed insurance broker companies and more than 10,000 licensed brokerage representatives; as well as over 2,000 licensed insurance agency institutions and more than 80,000 licensed individual insurance agents.
Insurance brokers and agents differ in terms of responsibilities, professional qualifications, and registers.
Responsibilities of Insurance Intermediaries
In terms of responsibilities, a licensed insurance broker represents the policyholder and selects the most suitable product from those offered by different insurance companies.
A licensed insurance agent, on the other hand, represents the insurance company and promotes insurance products to policyholders. According to the law, no company or employee can hold both a license as an insurance broker and as an insurance agent simultaneously.
| Broker | Agent | ||
| Types | / | Company Agent | Independent Agent |
| Definition | Signs contracts with different insurance companies to sell their products and finds the most suitable insurance plan for clients | Works for one insurance company, with some receiving a base salary as well as commissions and bonuses | An individual can represent up to 4 insurance companies (with a maximum of 2 being life insurance companies), with income mainly from commissions |
| Representation | Clients | One insurance company | Different insurance companies |
What Conditions Are Required to Become an Insurance Intermediary?
According to the guidelines on “fit and proper” persons for licensed insurance intermediaries under the Insurance Ordinance (Chapter 41), the IA will decide whether to issue or renew a license based on the intermediary’s educational background and professional qualifications*, work experience, reputation, character, reliability, and financial status. For more details, please click here to learn more.
Application for Insurance Intermediary License
Before becoming an intermediary, one must read the Notes on Applying for an Insurance Intermediary License , and submit the application for becoming an insurance intermediary through their affiliated insurance company or licensed insurance broker company.
To become an individual licensed insurance intermediary, one must submit an online application via the Insurance Intermediaries One-Stop Portal electronic service station, or submit a written Insurance Intermediary License Application Form .
Register for Verifying Insurance Intermediary Identity
Currently, the IA maintains two websites: the Register of Authorized Insurers and the Register of Licensed Insurance Intermediaries , for consumers to check information about insurance practitioners or institutions.
- * Applicants must achieve Level 2 or above in 5 subjects in the Hong Kong Diploma of Secondary Education, including English or Chinese, and Mathematics. Alternatively, in the Hong Kong Certificate of Education Examination, achieve Grade E or above in 5 subjects, including English or Chinese, and Mathematics, and pass the Insurance Intermediary Qualification Examination.
Difference in Commissions Between Brokers and Agents
In terms of income, both insurance brokers and insurance agents primarily earn through commissions.
| Brokers | Agents | |
| Commission Calculation Method | Receive commission as a one-time payment after the policy takes effect; however, if the policyholder cancels or reduces coverage within a specified period, the insurance company may claw back the commission | Calculated as a percentage of the premium, which decreases over time. For example, for a new policy, an agent might receive about 50% of the premium in the first year, then it decreases starting from the second year, down to 0% by the 5th or 6th year |
Ethical Concerns Over Insurance Intermediaries
If you are dissatisfied with an insurance intermediary, you can first submit a complaint via letter or email to the service institution. Complaint content must clearly state the complainant’s name, details of the incident, and any evidence supporting your case.
If you remain unsatisfied with the outcome, you can escalate to the Insurance Authority by completing the Complaint form and submitting it via mail or email for further processing.
Are There Other Ways to Buy Insurance Besides Brokers and Agents?
Virtual insurance companies make the insurance buying process free from time and location constraints, with quicker underwriting times compared to traditional insurers, which can take several days. Additionally, there are no intermediary fees, allowing you to get coverage at a lower premium.
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