Insurance broker or insurance agent: what is the difference in Germany?
In short
The difference in Germany: an insurance agent (Versicherungsvertreter) works on behalf of one or a few insurers, an insurance broker (Versicherungsmakler) works for you (§ 59 VVG). What is different in practice? The broker must compare a sufficient number of insurers and is personally liable, with at least 1,564,610 euros of indemnity cover per claim. You usually pay the same either way.
Agents and brokers in Germany usually cost you nothing extra; both are paid out of the premium.
Example
Typical range
Policy through an insurance agent
0 euros invoice, commission inside the premium
Policy through an insurance broker
0 euros invoice, commission inside the premium
Ongoing commission on contents or liability (guide value)
around 15 to 25 percent of the annual net premium
Broker's professional indemnity, statutory minimum
1,564,610 euros per claim, 2,315,610 euros a year
Commission rates are published market ranges for brokers, not statutory figures;
agents' commissions are not published in a uniform way.
As of October 2026.
Worked example
Cancelling just before the deadline
Your contents policy renews on 1 January, and the cancellation must reach the insurer by 30 September. You hand in the letter on 29 September.
Handed to the agent on 29 September
counts as received by the insurer, in time
Handed to the broker on 29 September
only effective once it reaches the insurer
Broker forwards it on 1 October
too late, the policy runs for another year
With tight deadlines, send the cancellation to the insurer yourself and copy the broker in.
Who agents and brokers work for
An insurance agent in Germany is appointed by an insurer to sell its contracts. Tied agents (Ausschließlichkeitsvertreter) represent one company, multiple agents (Mehrfachvertreter) several. Either way, they sell their partners' policies and legally stand on the insurer's side.
An insurance broker is engaged by you and appointed by no insurer. Since 1985 the Federal Court of Justice has described the broker as a trustee like guardian of the customer's interests. Under § 59 VVG anyone who gives you the impression of being a broker is treated as one.
Point
Insurance agent
Insurance broker
Works for
the insurer
you, the customer
Choice
policies of the partner insurers
a sufficient number on the market (§ 60 VVG)
Licence
§ 34d GewO as agent, or tied via the insurer
§ 34d (1) GewO as broker
Liability for mistakes
often the insurer
the broker personally, with mandatory indemnity cover
Your cancellation letter
counts as received by the insurer
only once the broker forwards it
What the difference means when comparing
An agent can only show you what their companies offer. That can work well if those policies are strong for your case, but a market comparison is not owed.
A broker must base the recommendation on a sufficient number of insurers and contracts (§ 60 VVG). If the broker limits the choice, they must tell you expressly beforehand.
Who receives your notices
By law an insurance agent is authorised to receive applications, notices and cancellations on behalf of the insurer (§ 69 VVG). If you hand a claim notice to the agent, the insurer has received it.
Brokers have no such statutory authority. A cancellation or notice you send to a broker only takes effect once it reaches the insurer. With tight deadlines, send important letters to the insurer yourself or ask for confirmation that it was forwarded.
Who is liable if the advice was wrong
Both must advise you and document the advice (§§ 60, 61 VVG), and both are liable for mistakes under § 63 VVG. The broker is personally liable and must carry indemnity insurance of at least 1,564,610 euros per claim and 2,315,610 euros a year.
Tied agents without their own licence may only work if the insurer takes on unlimited liability for their advice (section 34d(7) of the Trade Regulation Act, GewO). That is not worse for you; it just means the insurer is the one you claim against.
When an insurance agent is enough
If you want to stay with one company, are happy with its service and have simple needs, a local agent is fine. They often know their company's policies in detail.
A broker is the better fit if you want the market compared, have contracts with several insurers, need help in English with German policy wording, or insure special risks such as a business or health conditions.
Step by step
At the first meeting ask: are you an agent or a broker?
Ask for the status information and check the register number in the intermediary register.
Ask an agent which companies they represent.
Ask a broker how many insurers they compare for your case.
Send time critical letters directly to the insurer when you use a broker.
Checklist
Status (agent or broker) known in writing
Register number checked
Range of insurers known
Written record of advice received
Important deadlines in your own diary
Common mistakes
Mistaking a multiple agent for a broker
Handing a last minute cancellation only to the broker
Assuming a broker costs more than an agent
Not asking about status at the first meeting
Questions and answers
Frequently asked
How can I tell if someone is a broker or an agent?
From the status information you must receive at first contact,
and from the public intermediary register using the register number.
Is a multiple agent the same as a broker?
No.
A multiple agent works for several insurers, but on their behalf.
A broker works on yours.
Is an insurance broker or an insurance agent more expensive?
Usually neither.
Both are paid out of the premium, and you normally get no invoice.
Can I switch from an agent to a broker?
Yes.
Your contracts continue, and the broker takes over looking after them once you engage them.
What is NAMMERT?
Norman Nammert is an insurance broker under § 34d (1) GewO, register number D-C08Q-TOSD4-37.
He compares insurers, and the insurer pays the commission.
