Agents like to say that "a broker will make you broker and an agent is your friend."

The primary difference between an insurance broker and an insurance agent is who they represent. Initially it might appear that both represent the insurance buyer. Some might say that the term “Insurance Broker” sounds complicated and “Insurance Agent” sounds friendly. It is true that both act as intermediaries between insurance buyers and insurers. In full exposure, the broker represents the insurance buyer, an agent represents the insurance company.

How can this be? Why is there a difference and how does the difference affect me as an insurance client?