What does the term "intermediary" refer to in insurance?

The term "intermediary" in insurance refers to a negotiator who connects the insurer and insured. This role is critical in the insurance industry, as intermediaries facilitate communication and transactions between the two parties. They can include brokers or agents who help clients understand their insurance options, find suitable policies, and navigate the complexities of applications and claims. By acting as a liaison, they ensure that both the insurer's offerings and the insured's needs are effectively communicated and aligned.

While independent claims investigators play a role in assessing claims, they do not function as intermediaries in the same sense. Insurance policyholders, on the other hand, are simply the individuals who purchase and hold the insurance policies, and they do not engage in negotiation between insurers and clients. Lastly, a representative for insurance companies may indeed represent the insurance side, but this is a more limited role compared to the broader function of an intermediary, who serves both parties to facilitate a mutually beneficial outcome.