The difference between an insurance company, broker and agent

As the insurance market develops, new companies are emerging to provide insurance services. But how can you distinguish an insurance company from an insurance agent or broker? And what is the difference between an insurer and an insured? Let's take a closer look at this below.

Concepts and definitions

An insurance company is a legal entity that has a certain form of ownership under the Law of Ukraine "On Business Associations" and a license to conduct insurance activities.

An insurance agent is an individual or legal entity that acts on behalf of an insurance company and fulfills part of its insurance obligation.

An insurance broker is an individual or legal entity that is officially registered in Ukraine and has certain KVEDs for insurance activities, as well as acts on the basis of a power of attorney from various insurance companies.

What are the insurer and the insured and their differences in the contract?

Every insurance contract contains an "Insurer" and an "Insured" and many people confuse these concepts. In simple words:

  • The Insurer is the insurance company (the concept in abbreviated form)

  • Insured is an individual or legal entity that enters into an agreement with an insurance company.

Some contracts may also contain the term "Beneficiary".

The beneficiary can be either the insured or a separate person (company). The main difference is that it is the beneficiary who receives funds in the event of an insured event, not the insured.

What is the difference between an insurance company, a broker, and an agent?

Finally, we have reached the most interesting topic and now we will understand the difference between the concepts in simple words.


  • All of them can conclude insurance contracts

  • All of them communicate with the client and provide a list of offers

  • All have the ability to settle insurance claims on behalf of the insurance company


  • Insurance company - independently enters into contracts, settles insurance claims and pays out funds from its reserves. An insurance company obtains licenses for each type of insurance separately and has the ability to create new voluntary types of insurance in its portfolio. 

  • Insurance broker - a person or company that has the ability to provide insurance services from different insurance companies, can settle insurance claims, but it is the insurance company that pays for these claims, not the broker.

  • Insurance agent - in most cases, an insurance agent works on behalf of one insurance company and may be officially employed. They can conclude insurance contracts and provide consulting services on insurance products. An insurance agent does not settle insurance claims

What companies can be classified as agents and brokers?

The list and rating of insurance companies is available on our website and you can read it in detail on the corresponding page, and we will describe who belongs to other groups below.

Brokers include:

  • Insurance aggregators (services), such as KIRINS

  • Separately registered brokers with appropriate licenses

Insurance agents include:

  • Employees of insurance companies who conclude contracts with clients

  • Car dealerships

  • Service station

  • Car sales websites

  • And any other person or company that provides insurance services on behalf of an insurance company