The Relationship between Brokers, Insureds, and Insurers: Duties, Distribution, and Value Creation in a Changing Global Insurance Market
DOI:
https://doi.org/10.47604/ijmrm.4010Keywords:
Insurance Brokers, Insurance Agents, Dual Agency, Duty of Care, Distribution Channels, Captive Insurance, Protection Gap, Authority to BindAbstract
Purpose: This paper critically examines the relationships among insurance brokers, insureds, and insurers, focusing on professional duties, market distribution, contractual authority, and economic value creation.
Methodology: A qualitative literature review approach was adopted, synthesizing scholarly studies, legal frameworks, and international insurance market reports, primarily published between 2020 and 2025. The review was guided by Agency Theory and Stakeholder Theory, with evidence organised into five thematic areas.
Findings: Findings revealed that insurance intermediaries remained essential in reducing information asymmetry, facilitating risk transfer, and enhancing customer protection. However, dual agency, remuneration arrangements, and overlapping contractual obligations created potential conflicts of interest. Digitalization and alternative risk-financing mechanisms further transformed intermediary responsibilities, increasing the importance of professional competence and regulatory accountability.
Unique Contribution to Theory, Practice and Policy: Based on the reviewed literature, the paper informs intermediary governance and advisory practices and supports clearer contractual authority, remuneration transparency, and stronger consumer protection regulations in contemporary insurance markets.
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