In Germany, an insurance agent works on behalf of an insurer, while an insurance broker works on behalf of you, the customer. The difference is written into law, and it shapes whose interests the person across the table is obliged to protect. If you are new to the country and choosing between public and private health insurance, knowing which one you are talking to is the first step toward a decision you will not regret.
This guide explains the legal definitions, how each type is paid, what a broker must do for you, and how to check who is advising you before you sign anything.
TL;DR
- An agent is tasked by an insurer (or another agent) to arrange contracts. A broker arranges contracts for the client without being tasked by an insurer.
- A broker stands on the customer's side. An agent acts in the insurer's interest, either for one company or for several.
- A broker must base advice on enough insurers and contracts on the market, unless the client is told in advance that the selection is restricted.
- Both are normally paid by insurers through commission. Fee-based advisers are a separate category paid only by the client.
- Ask for the written disclosures: status, remuneration and any stake in an insurer.
Table of Contents
- What the law says a broker and an agent are
- Broker and agent side by side
- How brokers and agents get paid
- What a broker must do for you
- Why the choice matters more for people moving to Germany
- How to check who is advising you
- Our perspective
- Let us do the comparing
- FAQ
- Sources
What the law says a broker and an agent are
The definitions come from section 59 of the Insurance Contract Act (VVG). An insurance agent is someone tasked by an insurer or another agent to mediate or conclude insurance contracts, while a broker does so for the client without any such task from an insurer or agent. That "task" is the key word. If an insurer has handed someone the job of selling its products, that person is an agent, whatever the business card says.
The practical consequence is loyalty. According to the Chamber of Industry and Commerce (IHK) in Heilbronn-Franken, a broker acts for the customer as a trustee and must protect the policyholder's interests as well as possible, whereas an agent acts for the insurer. The Bergische IHK puts it the same way: the broker stands on the customer's side toward the insurer, as the customer's trustee and protector of interests, while the agent works under a commercial agency contract in the insurer's interest.
Tied agents and multi-company agents
Agents come in two common forms. A tied (exclusive) agent sells the products of one insurer. A multi-company agent sells for several insurers but is still an agent of those companies, not a representative of you. The same IHK source notes that agents are also commercial agents under the German Commercial Code (HGB).
There is also a licensing detail worth knowing. A tied agent can be entered in the register of intermediaries directly by the insurance company and does not need a license of their own. A broker, by contrast, needs authorization. Under section 34d of the Trade Regulation Act (GewO), both agents and brokers generally need authorization from the competent Chamber of Industry and Commerce, and that authorization states whether the holder is an agent or a broker.
Broker and agent side by side
| Question | Insurance broker | Insurance agent |
|---|---|---|
| Who tasks them? | The client | An insurer or another agent |
| Whose interests do they serve? | The customer's | The insurer's |
| Product range | Must base advice on a sufficient number of insurers and contracts, unless a restriction is disclosed in advance | One insurer (tied) or several (multi-company) |
| Licensing | Authorization from the IHK, shown as "broker" | Authorization from the IHK, or entry by the insurer if tied |
| Paid by | Usually commission from the insurer, or a fee agreed with you | Commission from the insurer |
| Typical fit | Comparing options across the market | Buying from one specific company |
Neither type is illegal, shady or automatically better in every situation. If you already know you want a particular insurer's tariff, an agent of that company can walk you through it. If you do not yet know which insurer or even which system (public or private) suits you, you need someone whose job is to look across the market.
How brokers and agents get paid
Most people ask this first, and it is a fair question. In practice, both brokers and agents are commonly paid by the insurer when a contract is signed. For you as the customer, that often means the advice has no separate invoice. The cost is built into the insurer's own pricing and passed to the intermediary, so the premium you pay is the same whether you buy directly or through an intermediary.
That model is not unique to health insurance, and it is why German rules focus on disclosure rather than on banning commission. Intermediaries must disclose the type of their remuneration and any direct or indirect holding above 10% in an insurance company. You are entitled to know, before you decide, how the person in front of you earns money and whether they are tied to an insurer.
The word "independent" has a legal edge
Be careful with that word. A consumer organization's ruling summary states that intermediaries who receive commissions from insurers must not present their advice as independent. So when a commission-paid broker describes itself, the precise and honest claim is that it is not tied to any single insurer, not that it takes no money from the market. That is the standard we hold ourselves to at Myhealthcarebroker.
Fee-based advisers are a third category
Section 34d GewO also recognizes a separate group: insurance advisers (Versicherungsberater), who advise or represent clients without receiving any economic benefit from an insurer and may be paid only by the client. Consumer advice sources point out that fully independent advice in the strict sense comes from fee-based insurance consultants or consumer advice centers. Their model works differently: you pay an hourly or fixed fee up front, and they do not usually handle the application for you. Some people like that structure, others prefer one contact who compares, applies and supports afterward at no direct charge. It comes down to how you want to work.
What a broker must do for you
The law gives the broker concrete duties. Under section 60 VVG, a broker must base advice on a sufficient number of insurance contracts and insurers on the market, unless they expressly tell the client before the client makes a contractual declaration that the selection is restricted. Two practical points follow:
- Ask how wide the comparison is. A broker who works with a handful of insurers must say so up front. One who covers the main providers can show you the range.
- Expect it in writing. Advice, reasons and your stated needs are documented, so you can look back at why a tariff was recommended.
If something goes wrong, you have routes. BaFin, the financial regulator, explains that it cannot make a final decision in disputes with insurers or intermediaries; that is for the civil courts and, in some cases, the Insurance Ombudsman Association. Knowing that before you sign is part of choosing well.
Why the choice matters more for people moving to Germany
German health insurance is a two-system setup, and the rules for who can choose are not obvious from abroad. The Federal Foreign Office states that health insurance is generally compulsory for residents and that people working in Germany are in many cases obliged to join statutory health insurance. Whether you can choose private cover depends on your situation: employees above the income threshold, freelancers, some students and families all face different rules.
The same page adds that the only providers authorized to offer the relevant private cover for visa purposes are insurers supervised by BaFin and European providers registered as EEA service providers. That matters if you need proof of insurance for a national visa or work permit. Our guide on which insurance proof you need for German visas and work permits walks through the two forms.
Here is where the broker-versus-agent question becomes concrete:
- Employee above the threshold: you can choose between public and private health insurance. An agent can show you one company's private tariffs. A broker can compare private tariffs across insurers and set them against public cover. Our public vs. private calculator gives you a first picture of both.
- Freelancer: your options differ again, and the right answer depends on income stability and family plans.
- Student or newcomer in the first months: eligibility may be limited, and the first priority is valid cover that satisfies the authorities. Our 90-day guide for newcomers covers that stage.
- Family: how partners and children are covered can differ sharply between the two systems, so the comparison should include the whole household, not only you.
A good first step is to check whether private cover is an option for you at all with our eligibility check. Then you know which conversation to have.
How to check who is advising you
Use this short list with any intermediary, including us.
- Ask for their status. Are they a broker, a tied agent, a multi-company agent or a fee-based adviser? The authorization states which one it is.
- Ask who pays them. Commission from the insurer, a fee from you, or both. They must disclose the type of remuneration.
- Ask which insurers they compare. If the selection is restricted, they must tell you before you commit.
- Ask about stakes in insurers. Holdings above 10% must be disclosed.
- Ask what happens after signing. Claims questions, address changes, tariff changes and renewals are where support is felt most.
- Be careful with online comparison tools. They are useful for orientation, but consumer advisers note that some platforms are operated by intermediaries and may not be fully independent or neutral. Treat them as a starting point.
- Cross-check with neutral test results. Consumer advice centers point to Stiftung Warentest for regular price and conditions comparisons of insurance products.
If you want to see the range of insurers yourself first, our overview of private health insurance companies in Germany and of public health insurance providers is a good place to start.
Our perspective
Most of the people who write to us have the same worry: they do not know who is on their side. The German system does not explain this well to newcomers, and the paperwork is in German, so it is easy to sign with whoever answers first.
Our view is simple. A decision about health insurance can last for many years, so the comparison should come first and the product second. That is why we work as a broker, not tied to any single insurer, and why we compare private and public options before recommending anything. We explain every step in clear English and Spanish, and we handle the application digitally, so you do not need to deal with German forms alone.
We are paid a regulated commission by the insurer when you sign, which means our service costs you nothing directly. We say this openly because you should always know how your adviser earns money. What you get in return is a person who looks across the market for you, checks your eligibility honestly, and stays available after the contract starts.
Our advice: before you talk to anyone, work out whether you are eligible for private cover, what your family situation requires, and how long you plan to stay. Then compare across insurers, not within one.
Marco
Let us do the comparing
If you are an employee, freelancer, student or family moving to or living in Germany, Myhealthcarebroker compares private and public health insurance across the major providers, checks your eligibility, and guides you from the first question to the signed application and beyond. You can start on our main page, or look at our newcomer guide first.
If you would rather have someone handle the practical side, such as appointments and everyday questions with insurers and providers, our healthcare concierge service is built for that. Thinking about leaving the public system? See how switching from public to private health insurance works, and what private health insurance covers.
For more background, read our articles on how brokers simplify the process for newcomers and on finding the right private plan with an insurance adviser.
FAQ
Is a broker or an agent better for health insurance in Germany?
It depends on what you need. If you want to compare across the market and have someone on your side, a broker fits better, because the law places the broker on the customer's side. If you have already decided on one insurer, an agent of that company can handle the purchase. For most people new to Germany, who do not yet know their options, starting with a broker is the more natural route.
Do I pay extra to use a broker?
Not as a rule. Brokers and agents are commonly paid a commission by the insurer, so you do not receive a separate invoice for the advice. At Myhealthcarebroker the service is free to you, and we are paid a regulated commission by the insurer when you sign. Always ask any intermediary how they are paid, since they must disclose the type of remuneration.
Can a broker call their advice independent?
Care is needed here. A ruling summary from a consumer organization says intermediaries who receive commissions from insurers must not present their advice as independent. A commission-paid broker can truthfully say it is not tied to a single insurer. If you want advice paid only by you, look for a fee-based insurance adviser.
What should I do if I am unhappy with the advice I received?
Start by raising it with the intermediary in writing and using the documentation of your advice. BaFin accepts complaints about intermediaries but cannot issue a final decision in a dispute. That is a matter for the civil courts and, in some cases, the Insurance Ombudsman Association.
Can I choose private health insurance whichever intermediary I use?
No. Eligibility depends on your employment status, income and personal situation, not on the intermediary. The Federal Foreign Office notes that many people working in Germany must join statutory health insurance. An eligibility check up front saves you from comparing options you cannot actually take.
Sources
- IHK Heilbronn-Franken, broker, agent and multi-company agent
- Bergische IHK, insurance intermediaries
- Bundesportal, insurance intermediary application
- IHK, documentation and information duties
- vzbv, intermediaries must not present themselves as independent
- Verbraucherzentrale, insurance education material
- Verbraucherzentrale, Stiftung Warentest comparisons
- BaFin, complaints about insurance intermediaries
- Federal Foreign Office, health insurance cover for national visas