Insurance brokers and insurance agency agents serve the same functions but their names are often used interchangeably. While both agents and brokers act as agents between buyers and insurance providers, these terms have some different meanings. An agent represents the prospective insurance buyer and an insurance broker represent one or more insurance agencies. These agents are often employed to aid with the selection of insurance products and services by the insurance consumers and are often referred to as an insurance agent.In the case of an insurance broker, the broker is not an employee of any insurance agency. The brokerage firm that employs brokers are known as insurance agencies, and these agents are also employees of the insurance agency. The roles of an insurance broker and an insurance agent are quite similar in some instances but there are notable differences in the way that each works in the process.In the insurance industry, a broker is considered to be an independent entity that acts as a third party in relation to an insurance policy. A broker plays a vital role in helping insurance policyholders select the proper products and services for their individual needs. Insurance brokers are sometimes referred to as brokers or agents, but in other cases they may not appear as such. In the United States and in some states of the United States, brokers may not use their own names on their license, but may instead be identified using terms such as independent, licensed, insurance salesperson, or a licensed insurance salesperson. The majority of brokers in the United States are employed by insurance agencies. A broker is not required to be licensed in every state, although many states require the broker to be licensed if he wishes to sell insurance products and services in that state.