What is the role of the intermediary in the insurance process?

The role of the intermediary in the insurance process primarily includes acting as a bridge between the insurer and the insured, facilitating the purchasing of insurance products. By collecting premiums on behalf of the insurer, intermediaries ensure that the insurer receives the necessary funds to provide coverage. This function is crucial as it simplifies the transaction process for clients, allowing them to acquire policies through knowledgeable agents or brokers who understand the products offered.

Intermediaries also engage in other roles such as providing advice, conducting market research, and offering support services, but the collection of premiums is a fundamental and primary duty, ensuring the financial flow essential for the insurance mechanism to operate effectively.