Agent of Record (AOR)

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Agent of Record

An Agent of Record is a designated individual or entity given the authority to represent and manage specific aspects of a client’s interests, typically in insurance or advertising sectors. Essentially, the AOR acts as the intermediary, liaising between the client and third-party providers like insurers or media outlets.

AOR in different sectors

While AORs are prominent in the insurance world, where they manage policy placements and renewals, they’re also pivotal in the advertising sector. Here, an advertising agency, as the AOR, manages a brand’s media purchases, placements, and overall advertising strategy, ensuring consistency and optimal impact.

Key functions of an AOR

  1. Representation. The AOR stands as the primary contact between a client and third-party providers. All communications, negotiations, and transactions are funneled through the AOR.
  2. Administration. From handling paperwork to ensuring timely renewals and compliance, the AOR manages administrative tasks, allowing clients to focus on core business activities.
  3. Expertise. Given their specialized knowledge, AORs offer strategic insights and advice, ensuring clients get the best deals, coverage, or placements.
  4. Negotiation. The AOR can leverage its relationships and understanding of the industry to negotiate favorable terms for clients.

When to reconsider your AOR?

At some point, you might need to sign an AOR or broker of record (BOR) letter, especially in the following situations.

  • You appoint your first-ever AOR or broker.
  • You switch your current broker due to high premiums or inadequate service.
  • You seek a more proactive AOR.
  • You’re dissatisfied with the current agent’s service.
  • There’s a communication gap with your existing AOR.
  • You discover an agency with more expertise tailored to your sector.

For instance, if you’re in the tech industry and discover an agent specializing in cybersecurity and dedicated tech services, switching might be beneficial.

More about AOR letter

Clients retain the freedom to change their AOR, reflecting shifts in their strategic needs or dissatisfaction with current services. Such a switch often involves an official letter detailing the transition and ensuring that all parties are on the same page.

An AOR letter is an official declaration made by the business owner, designating their chosen representative for insurance matters. It authorizes this agent to negotiate terms, manage policies, and oversee other insurance-related tasks on behalf of the company. Importantly, when a new AOR letter is signed, it typically ends the association with the previous agent.

Key points before signing an AOR letter

While appointing a new AOR is straightforward, careful consideration of the agreement is crucial. Key points to remember are:

  • Signing a new AOR means ending the relationship with your current agent.
  • Be vigilant; brokers might not always be upfront about certain terms.
  • Understand potential servicing fees, especially if you change AORs mid-term.

The AOR transition process

The procedure to appoint a new AOR typically spans around ten days:

  • The proposed agent drafts an AOR letter mentioning the necessary details.
  • You, the policyholder, review, sign, and return the letter.
  • The agent forwards the signed AOR to the insurance provider.
  • The transition is finalized in approximately 5-10 days, barring any interventions.

Upon the insurance company’s approval of the AOR letter, the old agent’s involvement concludes, and the new association begins.


An AOR offers a streamlined, expert-backed approach to managing your interests. Businesses keen on maximizing outcomes and minimizing hassles would do well to leverage the power of a dedicated AOR.

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