What’s the difference between an insurance agent and a broker?

Under the Insurance Distribution Act, Chapter 487 of the Laws of Malta, insurance agents and insurance brokers occupy genuinely different roles: an insurance agent is generally appointed by and acts on behalf of a specific insurer, meaning they typically represent and sell products from that one particular insurance company, whereas an insurance broker generally acts more independently, working on your behalf as the customer to compare and source suitable policies from multiple different insurers across the market, rather than being tied to representing just one provider's products. This distinction matters practically because an agent's advice and product range will inherently be limited to what their specific appointing insurer offers, while a broker is theoretically better positioned to shop the wider market on your behalf and identify the most suitable policy for your specific needs from a broader range of options, which can be particularly valuable for more complex insurance needs where comparing multiple providers' terms genuinely matters. Neither option is universally better in every situation, since a specific insurer's agent might still offer genuinely excellent, well-priced coverage for straightforward needs, but if you want a more comprehensive comparison across the market, especially for anything beyond a very standard policy, working with a broker would generally give you access to a wider range of options to properly compare.