Is there a difference between an insurance broker (Broker) and an insurance agent (Agent)? Is buying insurance online reliable?

In Hong Kong, many people purchase insurance through insurance intermediaries. Insurance intermediaries are divided into insurance brokers (Broker) or insurance agents (Agent). But do you know the difference between an insurance broker (Broker) and an insurance agent (Agent)? Is it necessary to buy insurance through an intermediary? Is buying insurance online feasible? This time, 10Life breaks down the role of insurance intermediaries and shares some tips on buying insurance.

Insurance intermediaries are divided into insurance brokers (Broker) and insurance agents (Agent). They are both frontline staff in the insurance industry, responsible for connecting policyholders and insurance companies. Their main duties include introducing insurance products, providing information and advice, arranging policies, and assisting with claims when necessary. However, the parties they represent are different.

There are many insurance products on the market, and using an insurance intermediary can help you more quickly understand the product details and coverage. However, note that the policy is a contract between the policyholder and the insurance company and is not related to the intermediary. Therefore, before taking out a policy you should clearly understand the intermediary’s role and related matters to protect your own rights and interests.

In Hong Kong, all individuals and companies engaged in insurance intermediary work must hold a valid licence issued by the Insurance Authority (IA) and are regulated by the Insurance Ordinance (Cap. 41). They need to pass the relevant insurance examinations and possess basic insurance knowledge and good character in order to gain trust and sell insurance products.

Once licensed, intermediaries must comply with the IA's rules, put clients' interests first when selling insurance, and continue to update their insurance knowledge through ongoing learning. If they breach the code of conduct, the IA has the power to take disciplinary action.

The IA is an independent statutory body responsible for issuing insurance intermediary licences and supervising whether intermediaries meet the required standards, including conduct, financial discipline, and the protection of clients' interests. To check whether an intermediary is licensed, you can visit the IA website's "Register of Licensed Insurance Intermediaries" and enter the name to search. If you have any questions or concerns about an intermediary, you can also make an enquiry or lodge a complaint with the IA.

Insurance brokers and insurance agents are both insurance intermediaries, but they represent different parties:

What is an Insurance Agent (Agent)?

An insurance agent (Agent) represents a designated insurance company. They can only sell the products of that company and cannot simultaneously represent products from other insurers. An insurance agent can be an individual, a company, or a group, and has a direct cooperative relationship with the insurer. They may receive a base salary, commissions, or bonuses.

What is an Insurance Broker (Broker)?

An insurance broker represents the policyholder. They do not belong to any insurance company and, based on the client's needs, compare policies from multiple insurers in the market to select the most suitable plan. The role of an insurance broker is to stand on the client's side, provide neutral advice, and assist clients in making the most advantageous insurance decisions. They work with multiple insurers but have no direct employment relationship, operating more independently.

Data as of April 30, 2025, there are approximately 1,500 licensed insurance agency firms and about 81,000 licensed individual insurance agents across Hong Kong. In the same period, there were also 802 licensed insurance broker companies and about 11,000 insurance brokers.

According to the Insurance Authority's guidelines, consumers are not required to purchase insurance through insurance intermediaries. Besides traditional sales channels, some virtual insurers and insurance platforms now offer online insurance application services, allowing consumers to choose the method of purchasing insurance according to their needs.

With technological development, more and more people are choosing to buy insurance online. But is buying insurance online reliable? According to the Insurance Authority’s regulations, all companies, brokers and agents providing insurance services in Hong Kong must hold a valid licence and are regulated under the Insurance Ordinance.

As long as you purchase insurance through platforms or insurers that are registered with and regulated by the Insurance Authority, the process and safeguards are as safe as traditional methods. However, regardless of which method you use to buy insurance, consumers should carefully read the product information and terms to ensure the coverage meets their needs. If in doubt, consult a licensed intermediary or the relevant institutions.

Although buying insurance online is becoming increasingly common, not all insurance products can be purchased online. At present, online insurance mainly focuses on life, critical illness and medical insurance products, whose premiums and coverage are relatively simple and clear. As for more complex insurance or products that include a savings component, since they may involve more underwriting requirements or need terms tailored to individual circumstances, they usually still need to be handled through an intermediary or by face-to-face consultation.

10Life is a licensed insurance brokerage company specializing in providing insurance advice, sales and related services. 10Life’s insurance advisers are all salaried employees and receive professional training covering a wide range of insurance products. They place clients’ interests first and are committed to providing more professional and more attentive protection advice. Want to know which insurance is best for you? Feel free to enquire with 10Life’s licensed insurance advisers to obtain impartial and professional advice.

Further reading:
[Medical Insurance] Do I need to buy it? Learn about types and benefits of medical insurance in Hong Kong
How to choose family medical insurance? Key comparison points and purchasing tips
What is the waiting period for critical illness insurance? Tips to consider when buying critical illness insurance

References:
1. Insurance Authority

Last updated: June 3, 2025

This English version of this article has been generated by machine translation powered by AI. It is provided solely for reference purposes. In the event of any discrepancy or inconsistency between this translation and the original Chinese version, the Chinese version shall prevail.