Role of an insurance broker
Extending cover to people or organizations against the occurrence of risks is a trend that traces far back in time. Increase in population coupled with continuous emergence of new businesses gives rise to demand for insurance policies. Insurance brokers serve the purpose of linking insurance consumers to the providers. Their intermediary role is an essential facilitator of business and individual prosperity.
Quite a number of people do not possess substantial insurance information. Therefore, they are not in a position to make informed decisions. Insurance brokers obtain information from clients and help them to make the choice. They are very knowledgeable in the insurance market. Insurance choices may regard the best policy to take, or the best insurance provider to engage. Since they act on behalf of the client rather than the insurance brokers, their obligation is to satisfy the consumer fully by exercising noble guidance.
Legality and professionalism
Insurance brokers operate under the boundaries of the law. Similarly, their profession demands adherence to professional standards. All insurance brokers are members of IBANZ. This body monitors them as per the code of conduct. Insurance brokers’ mandate is to work with client under these boundaries for transparent and integrity-oriented insurance dealings. The interests of the clients are always a governing component in all of the brokers’ work. Consequently, insurance brokers base their advice on these requirements. This assures insurance consumers of total quality and standards adherence.
The fact that brokers work on behalf of the client implies that they handle most of the paperwork. They also make all the necessary arrangements for acquisition of an insurance policy. It is not only an insurance policy but the best one available. They present all the insurance paperwork and follow up. The client does not have to worry as they deal with everything in a timely fashion. Due to experience and enhanced technical knowhow, insurance brokers take care of the necessary technical details.
The insurance sector is prone to changes in technology and trends. Such changes cause alteration of consumer attitudes. Insurance brokers equip themselves with new knowledge. They help insurance consumers cover themselves against risk occurrence through modern insurance trends (see reference 1). They oversee that the clients are in the best possible position in the insurance market under the prevailing conditions. Using the new knowledge culminates in cost saving by the client (see reference 1). Knowledge ultimately works in the best interest of the client
- Insurance consumers
- Insurance policies
- Risk occurrence
- Insurance market
other useful links