What Is the Role of an Insurance Broker
Whether you are an individual or a corporate, insurance is one of the most important services you will purchase, and a good starting point is to consider whether you want to employ an insurance broker.
It may seem that you are adding another link to the chain of negotiation, but a good broker can ensure the most economical deal and a policy which suits your needs.
A broker is a professional who offers, negotiates and sells policies, working as an intermediary between the customer and insurer, helping to assess risk and inspecting a range of policies from different companies. They will be doing all the time-consuming research for you.
According to the British Institute of Brokers Association, brokers arrange 72% of all general insurance, representing premiums in excess of £62bn and 93% of commercial insurance business.
One of the reasons they enjoy such a share of the commercial market is that there are brokers who specialise in a specific sector. Motor Trade Insurance is a good example and involves many complex risks. There are numerous options and sites such as motor trade insurance through quote me today.
When researching Motor Trade Insurance, a specialist broker will employ a number of strategies to get the best deal for their client ensuring sufficient cover at the best premium cost.
They maintain regular contact with companies such as financial institutions and insurance companies and keep abreast of changes in the industry, as well as monitoring new policy trends. This means they can offer complex and high-value policies.
A good relationship with your broker means that they are working for you rather than selling policies, which can be the case if you are dealing directly with an insurance provider. The broker is acting for you – not the insurance company.
By developing that relationship, your broker will have a clear understanding of your business and any specific risks which should be considered when choosing a policy.
Once you have developed a business rapport, the broker will carry out negotiations on your behalf and be able to keep you abreast of the many options available and advise on the best strategy.
Employing a broker will help to generate competition for your business among insurance providers, reducing costs.
You may find working with a broker is a long-term arrangement.