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What is the function of insurance brokers?
An insurance broker is a specialist in insurance and risk management. Brokers act on behalf of their clients and provide advice in the interests of their clients. A broker will help you identify your individual and/or business risks to help you decide what to insure, and how to manage those risks in other ways.
What do you mean by an insurance broker?
An insurance broker is someone who advises people on their insurance needs and negotiates insurance contracts on their behalf with insurers in return for a fee or commission. Insurance brokers act as middlemen between firms that want to insure their property and casualty risks and the insurers that underwrite policies.
What is difference between agent and broker in insurance?
The biggest difference between an Insurance Broker and an Insurance Agent is the people/organization they represent respectively. An insurance broker represents you as the client whereas an Insurance Agent represents the company they are employed by as their client, and you become the customer.
Why do companies need insurance brokers?
An insurance broker acts as an intermediary between you and an insurer. Armed with both your background and their insurance know-how, they can find a policy that best suits your needs for a reasonable price. While brokers can save you time and money, you may have to pay a broker fee for their services.
What are the responsibilities of an insurance broker?
The main role of insurance brokers is that they act as mediators or negotiators between customers and insurance companies. The responsibilities are to protect the policy holder from loss, collect the rate of premium from the insured party, selling of various insurance policies according to the requisites of the client and assisting and educating the insured parties for claim when needed.
Why should I use an insurance broker?
As an insurance broker we are professional advisers who work on behalf of their clients. We have knowledge of the insurance market and the ability to negotiate competitive premiums on your behalf. We provide expert advice in relation to the risks associated with the property you own and/or the business you operate.
How do insurance agents and brokers make money?
Agents and brokers make their money through commissions paid by the insurance company for making the initial sale. As incentive to keep you a happy camper, they can receive additional compensation when you renew.
Who is my insurance broker?
An insurance broker is an independent insurance agent who works with many insurance companies to find the best available policies for his or her clients. A typical insurance agent works for one specific company, and chooses from within that company’s policies for clients.