An insurance broker is a person who acts as middleman between the insurance company and the client. He/She works with the clients to help them understand and have an in-depth knowledge on how to get the best insurance cover to insure their risks. An insurance broker acts as an advisor to the client who is willing to have an insurance cover.The broker helps clients to understand their risks and discuss with them how to use insurance to protect their life, assets or businesses. Brokers offers expert advises on the risk reduction and management using range of policies available in insurance companies.They have an extensive network of the insurance companies and the products available in the market. They provide contact for a range of companies and assist clients to identify the best insurance company. Having an in-depth knowledge of the market and policies, they negotiate best deals for their clients.When the risk arises, they help their client’s to fill an insurance claim and resolve the claim.
What is the difference between insurance agent and a broker?
insurance agents and brokers are two words that confuse many people and are at times used interchangeably, they are two different people with different roles.An agent acts as a representative of an insurance company.He sells insurance policies on behalf of the insurance company.He must have an appointment with the insurer contrary to the broker who don’t have any appointment from the insurer.Brokers solicit insurance policies by submission of a completed application on behalf of the buyer of the policy.They neither have the ability to bind the insurance cover.To initiate any quote/policy, He/she must obtain a binder from the insurance company. A binder is a legal document that acts as a temporary insurance policy. It expires after 30 days. It becomes valid only after it has been signed by an insurance company representative.
What is the difference between Producer and Broker?
A licenced insurance producer acts as representative of an insurance company. Therefore, he can sell an insurer’s policies to clients unlike brokers who are not able to bind coverage. An insurance producer does the same roles as an agent. An agent and producer is just the same only that they are two different words that can be used interchangeably.
Key qualities of a good Business Insurance Broker
1) Excellent Communication Skills
A successful business insurance broker should learn how to communicate with the client effectively. A broker should be able to listen to his client first and then provide relevant useful information in details. The communication should be a two way process.Always choose brokers who tend to listen to you first and then provide you with feedback.He should learn to establish a relationship of mutual respect and good communication.
2) Strong Working Ethics.
It is quite evident that most of successful insurances brokers work tirelessly to provide their clients with the best services.They always observe strong working ethics and establish strong relationship with their clients. A serious broker will be available all the time for the clients because the needs may change.
3) Highly skilled, Knowledgeable and experienced
Excellent insurance brokers have prior knowledge on the risk associated with a client’s business. He is able to figure out which is the best insurance product that can best address such hazards. He is a very important asset when assessing risks.They highly skilled with in- depth knowledge of the regulations s they relate to insuring your business. They are always ready to advice you in case you need another advice from an expert; for example an accountant or attorney.
4) Good customer care services
An excellent broker will always be ready with answers to give when a clients asks him/her questions. He is always available to answer phone call and emails from clients who need clarifications.
He should be able to sacrifice to give his best to his clients when need arises.
5) Availability/ flexibility.
He should always be ready to serve his clients even during odd hours No phone call or email should go unanswered when the clients need assistance from him. He should always endeavor to offer best services that suits his clients.