Introduction
An insurance broker is a licensed professional who arranges insurance on your behalf, rather than on behalf of an insurer. In Hong Kong, brokers are licensed and regulated by the Insurance Authority (IA) under the Insurance Ordinance. This guide explains what a broker is, what they do, what they cost, and how they differ from an insurance agent.
Key takeaways
- A broker acts for you, an agent acts for the insurer
- Brokers are licensed and regulated by the Insurance Authority (IA)
- Broker companies must hold professional indemnity insurance
- Brokers are paid commission by insurance companies
- Your premium is identical whether you use a broker or not
What is an insurance broker?
An insurance broker is a qualified intermediary who negotiates or arranges insurance contracts as the agent of the policyholder. In practice, that means they compare products from several insurers and recommend the one that fits your situation and budget the most.
Brokers in Hong Kong must be licensed by the Insurance Authority (IA) and comply with the Code of Conduct for Licensed Insurance Brokers.
Licensing is not a formality. Broker companies must meet financial requirements that agents do not:
- Minimum HK$500,000 paid-up capital and net assets
- Professional indemnity insurance maintained at all times
- Client money held in a separate client account
- Audited accounts submitted to the Insurance Authority annually
These rules exist to protect the policyholder, which is a useful thing to know when you are deciding who to hand your medical history to.
What does an insurance broker actually do?
A broker’s job runs across the whole life of a policy, not just the sale. The work falls into three stages.
Before you buy:
- Comparing plans and sub-limits across multiple insurers
- Explaining what each policy does and does not cover
- Putting difficult cases, like pre-existing conditions, to the market
At the point of purchase:
- Completing and submitting your application
- Arranging the insurance contract itself
Once you’re covered:
- Handling claims and reimbursement issues
- Arranging guarantees of payment for hospital admissions
- Reviewing your plan and processing renewals each year
Most of this happens after the commission has been paid, which is why after-sales service is worth asking about before you commit.
Prepare with our 9 questions to ask your health insurance broker.
Insurance broker vs insurance agent: what is the difference?
Both are licensed insurance intermediaries. The difference is who they represent.
| Insurance broker | Insurance agent | |
| Represents | The policyholder | The insurer |
| Insurers offered | Multiple, no fixed limit | Usually one, up to four |
| What they’re good at | Comparing multiple plans from different insurers and providing structured advice based on your needs | Explaining one insurer’s range and selling products on behalf of the insurer they work with |
A company cannot hold both a broker licence and an agent licence in Hong Kong. The two roles are legally separate, which is why an agent cannot simply “shop around” for you.
What are the benefits of going through a broker?
Going through a broker has a wide set of advantages, the main being being able to see more of the market, and still paying the same price for the privilege. A broker holds agreements with several insurers, so one conversation covers plans you would otherwise have to request, read and compare yourself.
- Compare multiple insurers in one conversation
- One point of contact for applications, claims and renewals
- Better outcomes on pre-existing conditions across insurers
- Representation when a claim is disputed or declined
- No cost difference against buying direct
The benefit that matters most is the last one on that list combined with the fourth. When an insurer declines a claim, an agent works for the party that declined it.
How much does an insurance broker cost in Hong Kong?
Brokers are remunerated by the insurer, and that payment is often referred to as commission; it is already built into the premium that you pay.
Commission varies by product line and insurer. Your premium is the same whether you buy through a broker, through an agent, or direct from the insurer. Going direct does not remove the commission; it removes the advice. The same payment amount is withheld by the insurer who has direct agencies.
How is Lifestyle Insurance different from other brokers in Hong Kong?
Independent, and licensed since 2010
We are an authorised independent insurance broker registered with the Insurance Authority, Broker Company Licence No. FB1187. We have advised from our Sheung Wan office since 2010, and we are not paid to recommend any specific insurer.
Cover across every line, not just medical
Most brokers place one product line and refer the rest elsewhere. We advise across health, life, critical illness, travel, home and business insurance, so one advisor sees your whole position and the gaps between policies.
The same advisor from quote to claim
Your advisor handles your application, your renewal and your claims. We arrange guarantees of payment for planned admissions and challenge declined claims as your representative, not the insurer’s.
A panel we have tested
We work with 30+ local and international insurers, selected on product, underwriting approach and claims record. You can see the full list on our insurers page.
Want an unbiased view on your options? Talk to a Lifestyle advisor.
FAQs
A licensed professional who arranges insurance on behalf of the policyholder rather than the insurer. In Hong Kong, brokers are licensed and regulated by the Insurance Authority.
Usually, yes. Your premium is the same either way, so a broker gives you access to multiple insurers and support at claim stage at no additional cost.
No. Brokers are paid commission by the insurer, and that commission is already included in the premium you pay.
An agent represents the insurer that appointed them and sells that company’s products. A broker represents you and can compare several insurers before recommending anything.
