What is the primary role of an insurance agent?

The primary role of an insurance agent is to collect premiums. This function is essential in ensuring that the insurance policyholder maintains their coverage. By collecting premiums, the agent facilitates the financial relationship between the insurer and the insured, enabling the insurer to provide the agreed-upon services and protections in the event of a claim.

While negotiating contracts, conducting audits, and analyzing risks are important aspects related to the broader field of insurance, they are typically not the main responsibility of an insurance agent. Negotiating contracts might involve more complex discussions between underwriters and brokers or direct between the insurer and larger clients. Conducting audits usually falls under the responsibilities of compliance or audit professionals within the insurance company, rather than those of an insurance agent. Analyzing risks is often part of the underwriting process, where the insurer assesses risk to determine coverage terms and pricing. In contrast, the agent's primary duty focuses on facilitating the collection of premiums, which sustains the operation of the insurance policy.