An insurance broker has experience in various types of insurance and risk management. They help individuals and companies obtain insurance for themselves, their homes, businesses or families. Brokers can focus on one particular type of insurance or industry, or they can give advice on many different types of insurance. What does an insurance broker do for you?
What does an insurance broker do?
In the United States, brokers are regulated by the state (or states) in which they operate. Most brokers must have an insurance broker license that includes taking courses and passing an exam. Each state has different requirements for insurance brokers that the broker must meet to obtain a license in that state. In most states, insurance brokers must attend lifelong learning courses to maintain the license.
Caring for the best interests of customers
The broker should represent the interests of his clients. Part of the broker’s responsibilities is to understand the clients’ situation, needs and requirements to find the best insurance policy within their budget. Choosing the right insurance plan is quite complicated, and studies show that many people ultimately choose a less-than-optimal plan when they rely solely on their own judgment.
In addition to being well versed in the offers of all insurance companies, brokers should not show favoritism to any particular company. For this reason, brokers receive a commission instead of receiving payments from insurance companies, which can create negative incentives that harm trust between the broker and the client.
Here is a non-exhaustive list of common tasks to be performed by insurance brokers.
Sale of various types of insurance policies available:
- Promoting different products for new and existing customers;
- finding the best policy for each client;
- explaining each policy point to your clients; and
- carrying out the necessary formalities to sell an insurance policy.
Interviewing new clients to assess their risk when selling life or health insurance:
- Study of their origin;
- organizing medical examinations for the sale of health or life insurance;
- assessing financial records, medical history, criminal records or other documents if necessary;
- deciding on the best policy available for them.
Asset control when selling real estate or car insurance:
- Determining the condition of the property or vehicle;
- looking for signs of previous damage;
- assessment of potential threats (e.g. location of the property, its condition, main vehicle driver, vehicle color and mileage);
- consultation with the insurance Ombudsman
How do you find the right broker?
The first step is the decision to work with an insurance broker; now you have to find the right one for you. If you are looking for an expert with a strong reputation and extensive experience with business insurance products, look no further than our network of preferred brokers.