Have you ever spent hours reading through the entire insurance policy document, and then lost your way somewhere between? This long, confusing, legal, “fine printed”, twisted document is enough to put anyone to sleep. You have long wished that someone would do the tedious work for you, and ensure you are fully protected against all possible dangers. You know that even the slightest mistake in choosing a policy can result in financial loss. You will also need to spend a lot of time contacting insurance companies in order to settle unpaid claims. It can also be difficult to decide between the many policies and companies available on the market.
We provide you with an expert. This expert brings to the table a clear understanding of the market, companies, and their past service records, policies offered and exclusions. He also has claim settlement assistance and follow-ups. The best part is that you don’t have to pay him for his services. We are pleased to introduce you to the modern Insurance Brokers.
What is a broker?
The term “Broker” was first used in the late 1800s. A broker is someone who acts in any market, i.e. real estate, equity, mortgage, etc. A person who brings together buyers and sellers of a product. They also have to ensure fair deals for both buyers and sellers. Brokers are mediators in insurance parlance. Brokers are intermediaries that bring together an insurance company with an insurance seeker. Is that all they do? The answer is a clear no. Instead of being tied agents, insurance brokers are independent and can offer products from multiple insurers to ensure their clients get the best deal.
The broker is hired by the premium payer. The broker will assess the risk that his client is at-risk and recommend policies. He will then request quotes from multiple insurance companies and compare them against the coverages. The best policy would be the one that covers maximum risk and charges minimum. This is not all. The broker will handle all claims, if applicable, and follow up with insurance companies to ensure a speedy settlement. He also reminds you about policy renewals for next year. The broker’s contract runs from the date you hire them until the renewal. The broker’s contract must also be renewed each year.
A broker is a very profitable investment.
Do I really need one?
Yes! It is not wise to invest your money in a losing investment. Now imagine you were going to buy the newest car on the market. The first thing you should do is speak to a car salesman. He will be able to give you reasonable, budget-friendly advice. Insurance shouldn’t be any different. Insurance is an essential investment, especially in these times. The broker understands the legality and market inside and out. This is his job. The customer has the greatest advantage if he can get good coverage at a reasonable price.
What if the expert was correct about all your investments? There wouldn’t be a growing broker population if the brokers weren’t adding value to your insurance portfolio. Brokers are not only available to the general public and insurance companies, but also between insurance companies and other insurance companies, reinsurance companies, and even between reinsurance and reinsurance firms. Without the assistance of an insurance broker, large corporate houses wouldn’t be able to take out a policy. Trust the specialist.
Insurance companies are also happy to have brokers as channel partners. The brokers are an additional marketing force that helps them reach a wider market segment and reduce their administrative burden.
Lloyds in the United Kingdom is the world’s largest insurance broker. It is actually larger than most insurance companies.
Learn more about brokers
Multi-tasking is possible for brokers and they can recommend policies. Brokers are able to advise clients in many industries. They can assess their individual needs and risk profiles and help them devise ways to mitigate risk. For example, they might add security measures like fencing, surveillance cameras, lighting, or lighting to commercial properties. There are two types of insurance: Life Insurance and non-life. Life insurance provides coverage for individuals to provide protection for their loved ones in the event of death or disability. Policies that provide non-life insurance cover protect you from financial losses due to the loss of valuable assets or property like a house, office, stock, jewellery, etc. Brokers can help tailor your policy and reveal the potential risks that are not yet covered. The broker can help you manage everything, from obtaining a policy to settling claims and renewing policies, if you’re a company seeking group insurance coverage for employees. Imagine how much you’d save if you didn’t have to hire staff to do this huge task.
No lunch is free
The commission that brokers receive is based on their work. Brokers work on commission. However, they don’t need to be paid directly. The insurance company pays them their remuneration for sharing their marketing and administrative costs. The broker does not charge for any of the services provided. Zilch! Your broker’s fee is not included in the premium you pay. However, the broker’s intervention would mean that you will still pay less than you did last year or the previous year. Consider the money that has been taken out of the pockets of insurance companies. The amount of the premium that is paid to the broker will vary from one policy to the next. It may be as high as eighteen%.
Alright. Now, how do I get one?
Simple. There are many licensed brokers in the market. You may be thinking that you now have to decide which broker is right for you. Recommendation, word of mouth, outstanding clientele, years in service, claim settlement record records, etc. These are just a few ways you can help guide yourself to an insurance broker’s office. Insurance companies pay the commission to the broker. Brokers might feel compelled to recommend insurance companies or insurance types that pay a higher commission than those that are best for the insured. Before you make the decision to hire a broker as your “Broker on Record”, it is crucial that you discuss his remuneration.
The expert will take care of your insurance needs while you focus on more important financial matters and read between the lines. Relax in your recliner, because you’ve just outsourced your insurance worries and made insurance easier for you.