A Broker is the third, but one of the most important and powerful entities in the Insurance Industry.
A Broker is a highly regulated entity which deals with all Insurance Companies on behalf of its customers. A Broker is different from an agent which deals with only one Insurance Company.
The entity being a consolidator of business to the Insurance Company is able to negotiate better deals and service.
Other important distinctions of employing a Broker are:
Brokers represent and work on behalf of the customer, not the insurance company, unlike Agents who deal with only one Insurance Company.
- Brokers normally have very higher bargaining power - leading to significant Cost Savings for clients.
Brokers are technically competent to evaluate insurance companies on the basis of coverage, services and price and thus ensure healthy competition.
- Brokers assist in speedy and fair settlement of claims.
Brokers provide several Other Services like Risk Assessment, improvement in coverages, expert handling of claims, day-to-day policy administration, etc.
- Brokers can structure specialized insurance programs - policy limits, minimizing deductibles and optimizing coverage terms.
Brokers help you evaluate the stipulations and service you are enjoying today vis-à-vis the ‘best’ available in today’s competitive market - take advantage of competition.
- There are various good and niche products good in the basket of each Insurance Company.
- Outsourcing to experienced professionals makes your core team focus on their core work-area.