The insurance industry has made its place in the business sector. New insurance companies crop up with fair regularity and seem to take great delight in confounding the issue of finding the right insurance company for you. Insurance companies specialize in a wide variety of areas such as health, vehicle, life, home insurance, and many more. To make life a bit easier, the insurance broker came about to provide the best rates.
What is an insurance broker?
An insurance broker is essentially a go-between for the insurance company and the client. They take care of all the bargains and finalizing of the quotes. If the broker agent is acting on behalf of the person buying, then the broker is called a buying agent. The same way, an insurance broker working on behalf of the person selling is called a seller agent. The insurance broker is the agent of the firm who interacts with the potential customer and current customer about their claims and policies.
Insurance brokers may work on a fixed salary, a basic with the added commission or purely on commission. This depends entirely on which company they work for. They may also work for more than one insurance company and, as such, would be able to offer you more than one option for your insurance. A broker will not focus on one specific industry and will also allow you to consolidate your insurance under one roof which may make it cheaper for you in the long run.
Why do you need an insurance broker?
Imagine trying to get quotes from each insurance company in each area that you need insurance. Considering that there are so many insurance companies out there each with their pros and cons and quirks, this would undoubtedly be a time consuming and frustrating task.
By going through a broker, most of this work will be eliminated. All you will require doing is get quotes from brokers who work for different insurance companies and compare this much shorter list of quotes to find the best deal for you. So instead of looking at potentially hundreds of quotes, you will only need to compare a handful of quotes from a select few brokers.
Basic Responsibilities of an Insurance Broker
Insurance brokers are primarily salesmen. It is their job to source new clients for the companies they work for. They need to negotiate good rates with their potential clients and make sure that both parties honor the terms and conditions agreed upon.
The broker also must ensure the creditworthiness of the clients and to collect the rates due to each client every month. The broker is liable to the company for their clients, and so the insurance company is certain of being paid each month for clients attracted by the broker. It is the broker who takes the risk when offering insurance to clients.
So, a broker can offer good insurance deals and the opportunity to consolidate all your insurance under one company. They also take care of all claims and other necessary communication between the client and the insurance company.