What's an insurance broker ?
An insurance broker is an independent professional insurance advisor and provides Professional Financial Services and acts on behalf of the client.
They have in depth knowledge of the insurance market and have the ability to negotiate on your behalf. Just like an accountant or lawyer who provides you with professional advice, based on years of training and experience, a qualified broker can give proper advice on your insurance, help you to understand the fine print and ensure that you are getting value for money
Insurance is one of the most complex products you can buy. The broker’s task is to properly assess your insurance portfolio and shop around in order to obtain the best protection in the market to meet your unique insurance needs at the most competitive price.
Brokers normally work with a wide spectrum of products and insurance companies and can therefore assist the client to correctly structure his / her insurance policy.
The cost issue:
Conventionally clients’s think that having a Broker means additional cost, but studies have shown that broker pricing is usually better than direct insurance pricing.
Brokers deal with a number of insurers so they have knowledge of the insurance market and the capacity and bargaining power to negotiate competitive premiums on your behalf. Sometimes brokers have access to products that are not available to direct clients.
Not having a broker can have a much bigger negative financial implication, than having one who earns commission on the premium you pay
When dealing directly with a specific insurance company or its agents, they have only one product to offer – their own. A broker will evaluate the type of cover required by the client and go to several underwriters who specialise in the particular class of business. Subsequently, the client has more options to choose from, resulting in making an informed decision to get the best value for money.
Peace of mind that everything is covered:
Insurance can be incredibly complicated to fully understand, and an insurance broker can help you understand the details of a policy and also work out what level of cover you need so that you are properly protected. Direct insurers put too much focus on a client to make these decisions themselves, often without being aware of the loopholes. This can become very complicated especially for clients with non-standard requirements.
Brokers understand the policy wordings, conditions, requirements, exclusions and how excesses are structured, and knows best what your rights are when claiming. They work with a wide spectrum of products and insurance companies and can therefore assist you to correctly structure your insurance policy. The broker is normally very good in educating the client on these matters, helping them to better understand what is covered and what not.
An insurance broker works for you, and not for the insurance companies. It is the aim of the broker to build a close business relationship with you in order to understand your future plans, the associated risks and how you like to do business. A broker gets to know you, building up a profile of who you are and what you need with the long-term view of keeping you on as a client.
Don't settle for 'anonymous' insurance where you have to talk to someone in a call centre. Rather be on the first-name basis with your insurance broker, who is committed to protecting your family, your possessions and your business.
Brokers go out and see the client if that is what is preferred. What better way to really understand the client and his needs? Personal consultations are encouraged, to answer any questions you may have, to make suggestions that are useful, ensure there are no misunderstandings and no detail is overlooked and often saving them time and money.
For a broker a good relationship with clients ensures a good reputation, which in turn grows his portfolio, giving him more bargaining power, which then benefits the client again in the end. The proper maintenance of a client's portfolio is crucial for the growth of a broker and therefore the broker always have the clients’ best interest at heart.
If the worst happens and you do have to make a claim, a broker will act on your behalf, liaising with the insurance company to negotiate the best possible outcome for you.
Brokers understand the policy wording and know what your rights are when claiming. When it comes to claiming, you want someone in your corner who understands the ins and outs of insurance and has the knowledge to argue on your behalf. Wrong or inadequate cover can lead to disastrous consequences for individuals, families and businesses. A broker has the know-how to get it done quickly and maximise any claim pay-out.
Select the best broker from the start and trust him to do the job for you. You get the benefits of sitting back and carrying on with your life while the ‘middleman’ runs around behind the scenes sorting out your claim.
The services of a broker include:
• To always act with honesty and integrity and to ensure that the client is treated fairly at all times
• Ensuring confidentiality of your information.
• Comprehensive assessment of your assets and unique business and personal requirements and then obtaining quotations from various insurers.
• Comparing the quotations of the different insurers to determine the best cover for the most competitive price, taking policy conditions and claims excesses in consideration
• Finding ways to reduce overall premiums by combining different types of insurance
• Full analysis by a senior advisor to determine long and short term strategies and making unbiased recommendations with regards to the best options to enhance the clients’ circumstances
• Explaining premiums, terms, conditions, excess structures and insurance jargon in a way that is easy to understand.
• Availability to answer any questions and clarifying any uncertainties and concerns
• Compilation of the necessary applications and supporting documents
• Ongoing management and service level agreement
• Offers administrative service for any amendments, confirmation of cover and more
• Quarterly reviews of your portfolio and a full revision at policy renewal or when material changes take place
• Managing the claims process and ensure a fair and speedy settlement.
• A broker is paid a commission by the insurance company that that your business is placed with and this is disclosed on your policy schedule as required by the Financial Services Board