What Is An Insurance Broker?
Shopping for an insurance plan can be an overwhelming task. This is where insurance broker comes into the picture. So, you must be thinking what exactly is an insurance broker. Insurance broker is an entity or an individual who represents its client across the whole process, right from choosing the best plan to claim settlement. An insurance broker is different from an agent in that the broker acts on behalf of you i.e. the client whereas an agent is usually the employee of an insurance company.
One major advantage of insurance brokers is that they work for you and not any insurance company and have your best interest in mind. They offer a gamut of professional services for their clients which can range right from helping you choose the right policy to handling the claim settlements for you. No wonder, the concept of insurance brokers has become very famous in India owing to the convenient and comfortable experience they offer.
So, let’s see what tasks can an insurance broker do for you and why are they so highly regarded in the industry. This involves a long list of the roles or duties that an insurance broker is expected to perform for its clients.
What Can An Insurance Broker Do For You?
Now, you must be wondering what can an insurance broker do for you and what their role exactly is. Over the years, there has been a rise in the number of independent insurance brokers and broking firms in India. With their technical know-how, expertise and personalised service, insurance brokers have become indispensable to the insurance buying process. Whether it is regular insurance such as life, health and automobile or safeguarding your large business assets, hiring a professional insurance broker to do the job makes all the difference.
So let’s understand, one by one, all the tasks that an insurance broker is expected to perform and how they can make your insurance-owning experience totally convenient. This involves a long list of the duties/responsibilities of an insurance broker and they are pretty comprehensive and cover all the aspects
1. Understanding The Client
Getting to know the client and/or their business, along with their risk profile, is one of the primary functions of a broker. An insurance broker spends ample time with its clients and understands their needs, to suggest them products which match their exact requirements when it comes to buying an insurance policy.
2. Procuring Quotations
An insurance broker is responsible for getting quotations from different insurance companies for the client to consider. Insurance quotations give a fair amount of idea as to what all is included and excluded in the insurance policy.
3. Finding Appropriate Policy And Cover
An insurance broker’s role involves advising the clients about the best insurance policy for its clients and explaining the various terms, inclusions-exclusions etc. Usually, insurance policy document entails a lot of jargons and technical terms and it’s the duty of the insurance broker to help its clients understand everything in detail.
4. Understanding The Market
To have a detailed knowledge of the prevailing insurance market is expected of a broker. New rules and regulations are generally introduced by the government and the respective authorities and it’s important that the insurance broker stays updated with these changes.
One more benefit of hiring an insurance broker is that they ensure that all the documents are submitted by the client in accordance with the guidelines and rules. Insurance paperwork is an important part of the whole process and the insurance broker sees that all the documentation is done properly without any discrepancy.
6. Assisting In Paying Premium
An insurance broker helps its clients in paying insurance premium by working out the modes of payment and maintaining a history of all the transactions. Paying insurance premium on time is necessary and the insurance broker keeps a track of all the important schedules and dates.
7. Policy Renewal
Coordinating with insurance companies for renewing client’s insurance policies, whenever they are due, is also one of the major responsibilities of the insurance broker. This makes sure that the protection client is receiving from the insurance policy remains valid throughout the whole period.
8. Claim Assistance
Claim negotiation can often be a tricky task and hence an insurance broker sees that all technicalities are being understood to ensure smooth processing of the insurance claims. This is where insurance broker’s expertise comes into play so that your claims with your insurance companies are comfortably settled.
9. Maintaining Records
To keep a proper record of all the insurance claims made is also a part of the services rendered by an insurance broker. This can be very handy when making any dealings with your insurance company.
10. Keeping The Client Updated
An insurance broker needs to act on requests made by the client and provide them with proper acknowledgements and progress reports. An insurance broker/broking firm’s team should be equipped to handle any ad hoc tasks and render proper services, as and when required.
When To Use An Insurance Broker?
Now that you know all the tasks that your insurance broker can do for you, one question on your mind must be about the times when it’s advisable to use an insurance broker’s services. Whether to take care of your insurance tasks yourselves or hiring an individual broker/broking firm depends on several factors. So, let’s have a look at the factors which you should consider when deciding between buying your policy through broker or buying your insurance directly
Time: Buying the perfect insurance policy is a time-consuming process. You have to meet executives from different insurance companies and do a lot of groundwork yourself to choose the right insurance policy. If you are pressed for time, then delegating your tasks to an insurance broker is always good, as it can help you focus on things important to you.
Expertise: Insurance is a subject matter and requires a deep understanding, which only an insurance broker can offer. Technical jargons can leave you confused and it’s always better to hire a professional insurance broker in such cases, so that you have all the required clarity before buying your insurance policy.
Peace of mind: When you buy your policy through an insurance broker they take away all your stress and do everything for you. Right from choosing the right plan to handling claim settlements, buying an insurance can be a long process. To avoid all the hassles associated with buying an insurance, hiring a professional insurance broker is always a good idea.
Options: Who doesn’t love options! And when you hire an insurance broker, you definitely have this luxury. While buying your insurance policy through an insurance broker, you have the opportunity to browse through different plans of different providers and then finalise those which fit the bill.
Service: This is one of the major defining aspects or benefits of buying your insurance policy via an insurance broker. With their professional approach, insurance brokers make everything very easy for you. So, if you value personalised and heartfelt service, be assured of receiving it in plenty when you hire an insurance broker.
How Do You Find The Right Insurance Broker In India?
All set to hire an insurance broker for you? The next obvious step becomes finding the one with enough credibility and an excellent track record. Post introduction of insurance broker as a concept by IRDAI, plenty of insurance broking firms as well as independently working brokers have cropped up in India. Depending on your requirements and needs, they offer standardised or customised services to their clients.
With a vast pool to choose from, hiring that perfect insurance broker is a task in itself. There are many criteria to consider before you commission someone as your official insurance broker. But with the right planning and approach, you can be assured of hiring an insurance broker which ticks all the boxes.
To understand these criteria in detail and make an expert decision when it comes to hiring or choosing an insurance broker, read below related blog.
Related Blog: How To Choose Insurance Broker In India
Benefits Of An Insurance Broker
Without a doubt, buying your insurance through a broker is a fool-proof strategy. Zero hassles, absolute convenience and 100% expertise are some of the defining benefits of working with an insurance broker. Besides these obvious advantages, there are plenty of benefits of working with an insurance broker and these are what make them such a lucrative option while buying an insurance plan.
Read more in detail about the many advantages of hiring a professional insurance broker to take care of your insurance requirement, in below related blog.
Concluding thoughts: it’s always better to hire an insurance broker to take care of your insurance requirements. If you are an individual or a business with large assets, one cannot stress enough on how important it is to have an insurance plan in place. The loss due to damages often override the costs of buying an insurance and hence getting a policy is the wisest decision you can make. And in this endeavour, buying your policy through an insurance broker can be hugely beneficial. Availing their professional services can make the whole insurance buying process a lot easier and smoother for you.
If you are seeking thorough professionals to handle your insurance portfolio, then you have landed at the right place. We are Life & General, a two-decade old registered insurance broking firm in Pune, with a team of experts which can advise you in an excellent manner. Armed with an impeccable track record, when it comes to hiring an insurance broker, your search ends here. For an appointment with us, fill out this enquiry form.
Life & General commenced its operations in 2001 and became one of the first brokers to be licensed and regulated by the Insurance Regulatory & Development Authority of India (IRDAI). The company primarily operates in the State of Maharashtra with offices in Mumbai and Pune. L&G has developed a portfolio across various classes including life, health, marine, property, engineering, general aviation, liability, motor and reinsurance.