DEFINITION of 'Brokerage Department'
A department within an insurance company whose agents specialized in obtaining insurance for difficult-to-insure customers through alternate insurance markets or by obtaining insurance at a more favorable rate than such a customer could find on his or her own. Examples include a smoker who wants to buy life insurance, someone who has had heart surgery and wants to purchase an individual health insurance policy and other high-risk or unusual situations.
BREAKING DOWN 'Brokerage Department'
Whereas customers who can easily meet insurers' underwriting criteria may obtain insurance directly from an insurance company without the assistance of an agent, for high-risk customers an agent in the brokerage department will analyze the client's needs, research and review the available insurance options, make recommendations and secure the policy for the client.