Insurance agent - a legal representative
Insurance agents work as a liaison between the insurance firm and the customer. With the insurance company, he has to get into an 'agency contract'. Though he is not a direct employee of the company, he represents the company legally. He is abides by administrative duties such as processing the forms, verifying various documents and help the company by selling a policy.
In most cases, as a potential insurance buyer, you have to conduct a thorough research on the right policy and approach him for finalizing the formalities. Unlike the broker, an insurance agent has the legal right to obligate the insurance company for providing the coverage. Agents can be of two types: exclusive agents and independent agents. The former is entitled to sell policies for a particular company, while the latter can work for different insurers.
Insurance brokers - an expert advisory
Insurance brokers are not related to the insurance company directly nor does he have to sign a contract with the insurance firm. He represents the potential clients. For this, he has to get in touch with the insurance companies for offering quotations and coverage. His roles include collecting information based on the client's need and presenting it to different insurance firms. However, he has no right to bind coverage, unless the firm intends to do so.
The advantage of going through a broker is that he presents before you a lot of options, as far as insurance covers are concerned. He will analyze the policies of different insurance firms and suggest you a suitable cover based on your needs. They are more of insurance consultants than agents, who mostly handle administrative responsibilities. This comes at a cost, which is included in the premium. So obviously you have to pay a higher premium when you purchase your cover via the broker.
The bottom line
Now it becomes clear that their roles of both the insurance professionals are different. Brokers are consultants with a higher level of expertise but you should pay up for the service, in the form of higher premium. Agents on the other hand, sell the cover to you but you may not get the desired personalized service, neither do you pay up anything extra to them, which make sense when you have your research in place. In the US, both the professionals have to clear the licensing exams. However, while brokers are expected to have some formal degree, it is not a criterion for agents.