Insurance brokers act as intermediaries in insurance contracts between two parties, usually insurance companies and → Policyholders. They are traders within the meaning of commercial law, in accordance with section 7(2)(7) of the German Commercial Code (HGB), and are defined as commercial brokers under section 93 of the HGB. Insurance brokers are not contractually bound to any insurance company, but act as ‘fiduciary-like agents’ representing the interests of the → policyholder’s on his side.

Source reference: See the VDT publication “VDT Article Series, Part 5 | Glossary“ and the source cited there.