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Top 5 Reasons to Buy Insurance Through a Broker

Top 5 Reasons to Buy Insurance Through a Broker

In today's litigious and uncertain world, insurance has become a very important component of every financial plan.
But, when it comes to buying insurance, consumers often get confused obout where they should start and how to decide on the best policy solution to their specific needs and circumstances.

Navigating the insurance market, whether for business or personal protection, is always a complex exercise, even for the enlightened consumer.

A reputable insurance broker can reduce the time, effort, cost ... and much of the anxiety surrounding this process.

Apart from making the whole experience much simpler, a broker (by definition) will negotiate on your behalf to find you the most appropriate policy/ies from the most trusted insurance companies ... often at a price considerably lower than rates offered direct.

This article aims to help explain some more of the upsides of talking to a licensed insurance broker before buying any form of personal or business insurance.

Time and effort:

A good insurance broker has access to both local and international insurers and will have a thorough knowledge of the products provided by those insurers.

Armed with the knowledge of the policies available, the broker has access to sophisticated analysis tools in order to track down the policy that best suits your exact requirement.

This negates the need for you to spend hours on the phone or searching online trying to find and compare quotes - without a full understanding of whether you are even comparing apples with apples.

An independent, licensed insurance broker can effectively do all the research and price-shopping for you, slashing the amount of time and effort that this task would normally take.

Professional advice:

If you approach an insurance company direct, the chances of getting the best value-for money insurance policy for your requirements is greatly reduced. The company may have different policy options, but they are unlikely to tell you about the benefits of another company's product over their own.

Also, all insurance policies from one company may not be good for your particular circumstances. A reputable broker, on the other hand, will give you inputs on what is good and what is not. It's his or her role to understand  the differences in policies from various companies and how those differences may impact on you- particularly in the event of a claim.  Your broker will tailor an insurance solution to your specific needs.

Wholesale rates:

People often go direct to insurance companies on the mistaken belief that it is cheaper because brokers often charge a policy fee for their service.

But broker fees are usually very small and, if you go direct, you only have access to the insurers' standard, retail rates.

Brokers purchase a large number of policies on behalf of many, many clients from the insurance companies, and thus they usually get sizeable rate discounts which, by law, are passed on to you, the client.

Insurers offer significant concessions to brokers because they introduce large volumes of business if the insurer looks after their clients.

It is also cheaper for the insurance company to administer policies purchased through a broker because brokers are usually digitally connected to most insurance companies - meaning less admin costs for the insurer which equates to more savings to pass on to you.

These special rates will not be available to the general public. Hence, buying insurance through a licensed broker is always more cost effective.

Faster, better service:

Have you ever been left on hold for what seemed like an eternity - waiting to talk to someone about your insurance claim or a change to your policy ... only to find that the person can't help you directly?

Most insurance companies outsource their customer service to third-party call centres where the staff does not have enough knowledge to respond to your request directly.

Documentation requests, claims and other queries will be resolved more slowly as a result, which equates to inferior customer service.

On the other hand, your broker will be far more efficient and personable in these situations. More often than not, your insurance broker will have a stock of generic claim forms and will make (and follow-up) your enquires with the insurer, offering advice and making timely suggestions in the process .

Brokers will maintain this level of service throughout your client/broker relationship in order to maintain their customer base and grow their business.

Peace of mind:

Insurance brokers are responsible for managing your policy so that you never have to worry about a thing.

When it comes time to file a claim, they won’t hesitate to fight from your side.

Instead of just offering a best deal, these professionals constantly cross check the policies and educate their customers about the options available before helping them make a decision and giving peace of mind to the customer.

Now that you are clear about the benefits provided by a reputed brokerage firm, start looking for a good one that can offer the most professional insurance service you can buy.

Remember to look for the firm that has good experience and proven track record of serving customers.

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Insurance broker:
An agent acting on behalf of the insured (not the insurance company) who negotiates the terms and cover provided by the insurer in the insurance policy.