When we talk about insurance policies, the first thing that comes to our mind is an insurance agent or insurance broker. Many people don’t know that an insurance broker’s role and job responsibilities are different from an insurance agent. It is essential to understand the difference between both roles to make the best use of insurance services to protect business and personal interests.
Both the insurance brokers and agents are licensed professionals who help individuals and corporate with insurance policies. The role of an insurance broker is more like an advisor to a consumer, and he directly represents the consumer. They don’t sell insurance products but help their clients find the right insurance policies and risk coverage as per their needs. They provide all the essential information related to different insurance companies and their approaches to compare. In a way, they help their clients find the right insurance policy and protection plan while focusing on their business growth or personal lifestyle, depending on if the client is looking for individual insurance plans or corporate insurance plans.
Insurance Broker vs. Insurance Agent
An insurance agent directly represents an insurance company and focuses on selling insurance products to consumers on behalf of the company. They work as a bridge between the insurance company and consumers for selling insurance products. Unlike an insurance broker, an insurance agent only targets to increase the insurer’s sales by bringing more clients on board. An insurance agent offers a company’s products and gives a detailed insight into the consumers. He also helps clients with paperwork and premiums for the chosen insurance plans.
In general, if you are looking for a new insurance policy and are unsure which insurance policies from which company will be best for your needs, you should go to an insurance broker. Insurance brokers work with different insurance companies and keep an eye on the market to help clients get the best coverage plans. They are equipped with technical knowledge and expertise to serve their clients with their insurance and financial planning.
An insurance broker performs the following duties (role of insurance brokers) :
- Risk analysis and evaluation based on client’s business information
- Research insurance policies, coverage plans, terms, conditions, and prices on behalf of the client
- Give appropriate advice and insurance solutions to the clients
- Keep updated with the insurance market and policies
- Negotiate with the insurance companies on behalf of the client
- Responsible for progress reports and written acknowledgments
- Offers insurance consultancy during negotiations, claims, risk management, and premiums
Many insurance broking companies closely work with their clients to craft their coverage plans as per their needs. They offer all kinds of insurance and investment solutions to their clients.