Insurance brokers play an important role in the insurance market and have been actively doing so for hundreds of years. A common misconception is that insurance brokers and insurance agents are essentially the same. The characteristics, performing role and operational means of an insurance broker, however, differ greatly from an insurance agent. Unlike an agent who is an employee of an insurance company and is licensed to sell that company's products solely, an insurance broker works for their client - the insured or the policyholder. Brokers, in contrast to agents, negotiate with insurers on price and policy conditions, arrange the insurance policy and provide consulting and intermediary services. According to recent statistical averages, brokers represents 60-70% of the overall business volume of insurance companies.

Even though a great percentage of insurer's business comes by way of brokers, an insurance broker is legally obliged to protect the interests of their client. One of their main roles involves developing innovative, tailor made insurance solutions to counter the restrictions and limitations of existing “off-the-shelf” insurance products offered by most insurance companies. Afterwards, they monitor the after sale service provided by the insurance company, ensuring their client receives the appropriate policy protection and help to resolve any possible disagreements between the insured and their insurer.

A typical insurance brokerage firms assembles a team of highly skilled professionals with diverse specialties to guarantee the best and most professional service. It is important to note that the broker does not charge the client for this service, but recovers their fee from the insurance company.

All broker's services are governed by law. In China, their service is subject to civil law, contract law, the Insurance Act and the Insurance Intermediary Ordinance of the People's Republic of China. Furthermore, an insurance broker's conduct is strictly monitored and governed by China's insurance regulatory body, the CIRC (China Insurance Regulatory Commission).