What is an insurance broker?
An insurance broker is an independent intermediary who represents the policyholder and can work with multiple insurers. In Turkey, brokers must hold a SEDDK brokerage licence and are legally prohibited from having an ownership interest in any insurer. Their duty of care runs to the client, not the insurer.
Because the broker's duty runs to the policyholder, they are obliged to search the market objectively, advise on coverage suitability, and support the client in the event of a claim — even if that means challenging the insurer's position.
What brokers typically do
- Analyse the client's risk profile
- Obtain and compare quotes from multiple insurers
- Negotiate policy terms and coverage conditions
- Represent the client during claims
- Provide risk management advisory
What is an insurance agent?
An insurance agent is an intermediary who represents the insurer (or a limited number of insurers). They distribute insurance products on behalf of those insurers. Their primary legal obligation is to the insurance company they represent, not to the policyholder.
This does not mean agents are unhelpful; for standard retail products they are often entirely adequate. The distinction matters most when there is a conflict of interest — for example during a disputed claim — or when independent advice is needed to compare the whole market.
Key differences
| Topic | Broker | Agent |
|---|---|---|
| Represents | Policyholder | Insurer(s) |
| Insurer access | Any licenced insurer | One or a contracted set |
| Licence (Turkey) | SEDDK brokerage licence | SEDDK agency authorisation |
| Legal duty | To the client | To the represented insurer |
| Claims support | Actively represents client | Coordinates with insurer |
| Remuneration | Commission from insurer or brokerage fee | Commission from insurer |
| Insurer shareholding | Prohibited by law | Not restricted |
Legal framework in Turkey
Insurance intermediation in Turkey is governed by Insurance Act No. 5684 and SEDDK regulations. The Act defines a broker as a person authorised to conclude insurance contracts on behalf of the client and, where necessary, to follow up claims on the client's behalf. A key independence requirement prohibits brokers from holding ownership stakes in any insurer — this legal firewall is the foundation of genuine independence.
Broker vs agent: when each makes sense
A broker is preferable when
- You need the whole market compared objectively
- The risk is complex, large or unusual (engineering, D&O, reinsurance)
- Independent claims support matters
- International programme or reinsurance is involved
- You also want risk management advice
An agent may be sufficient when
- You are buying a standard personal lines product (motor TPL, compulsory earthquake)
- You are already satisfied with one insurer's offering and understand the terms
What is a reinsurance broker?
A reinsurance broker is distinct from an insurance broker. They represent cedant insurance companies — not individual policyholders — and source reinsurance capacity on behalf of cedants in the global reinsurance market. Neolife holds SEDDK licences for both insurance brokerage and reinsurance brokerage.
Sources
- Insurance Act No. 5684 (Turkey) — Articles 2, 26–30 (intermediation)
- SEDDK — Regulation on Insurance Agents and Brokers (seddk.gov.tr)
- Association of Turkish Insurers (TSB) — Sector statistics (tsb.org.tr)