Insurance Makes Life Easier

Haven't you tired yourself reading the entire insurance policy document and lost yourself somewhere in between? The long, confusing, lawful, "fine printed", twisted document that is capable of putting anyone to sleep? For long you have wished for someone to take care of that tedious job for you and make sure you are well covered against all perils. As you know the slightest imprudence in selecting a particular cover can lead to much financial loss. Then again, following up with insurance companies for settlement of an unpaid claim can tax your time immensely. To top it all, to choose among the intricate gamut of companies and several policies offered by them in the market can be even more puzzling.

So, we give you an expert. The one who brings to table clear knowledge of the market, companies and their past service record, policies offered, inclusions and exclusions, optimum premium to be charged, claim settlement assistance, follow-ups etc.. Icing on the cake, you don't pay him for his services! Pleased to introduce the Insurance Brokers of modern times.

Who is a Broker?
"Broker" is a term coined long ago. Essentially a broker in any market i.e. real estate, equity, mortgage, etc. is a person responsible for bringing together a buyer and a seller of a product. They are also responsible to ensure that both parties get a fair deal. In insurance parlance, brokers are no different and act as mediators. Insurance brokers are intermediaries bringing an insurance company and an insurance seeking person together. But is that their only role? 

Well, the answer is an obvious no. Insurance brokers, unlike tied agents, are independent and offer products from more than one insurer to ensure that their clients get the best deal.

The premium payer hires the broker and in effect the broker works from his end. He shall study the risks that his client is exposed to and suggest various policies. Then, he will invite for quotations from several insurance companies and compare their bids vis-à-vis the coverages offered. The most optimum policy - maximum risks covered and minimum price asked for - would be the natural choice. 

That's not all. He shall service all claims, if any, follow-up with the insurance companies on speedy settlement and also remind you of policy renewals next year. Brokers work on a yearly contract commencing the day you hire them till the next renewal. The brokers' contract too has to be renewed every year.
The broker is certainly a profitable investment.

But do I need one of those?
Yes! No one would put their money in a loss making investment. Imagine you were to buy the latest car in the market. Now, the first thing that you will do is to speak with the car salesman who knows about the automobile market and will give you a decent, budget - friendly advice. Why should insurance be any different? Especially when in today's times, it is an indispensable investment and you don't understand it. The broker comprehends the legality of the cover and knows the market in and out. For one, that's his job. A good cover with an affordable price is the biggest advantage to the customer.

Would you not take the expert's word for all your investments? If the brokers were not adding value to your existing insurance portfolio, there wouldn't be such a thriving broker population. Today there are brokers not just among the common man and the insurance company, but also between an insurance company and another insurance company, an insurance company and a reinsurance company and even between a reinsurance company and another reinsurance company. Large corporate houses would not take a cover without the involvement of an insurance broker. Long and short of it is, trust the specialist.

The insurance companies too are happy to welcome brokers as their channel partners. After all the brokers come in with an extra marketing force, helping them scale a larger section of the potential market and share their administration load as well.

More about brokers
A Broker is capable of multi-tasking and can recommend various policies. Brokers can advise on numerous industries, evaluating their independent needs and risk profiles, advising clients on risk management, and helping them to devise new ways to mitigate risks, for example, by adding security measures such as fencing, surveillance cameras or lighting to commercial properties to reduce the likelihood of break-ins, administrative tasks such as dealing with paperwork, correspondence, keeping detailed records etc.. 

The insurance sector can be divided into Life Insurance and Non-life or General Insurance. Under life insurance, cover for individuals are available to protect their families incase of death or disability of the insured. Non-Life insurance covers provide with policies that protect you against financial losses occurring due to damage of assets and valuables like house, office, furniture, stocks, jewellery etc. 

Brokers can help you tailor a policy and help you discover the risks exposed yet uncovered. If you are a company looking for group insurance covers for your employees, trust the broker to handle everything from taking a policy, to claim settlement and policy renewals. Imagine the cost that you will be saving in case you were to hire people on your payroll to handle this enormous task.

There are no free lunches
Brokers work on commission. Although, you don't have to pay them directly for their services as their remuneration is paid by the insurance company for sharing their administrative and marketing costs. For all the services offered, there is nothing that you pay to the broker. Zilch! However, the premium that you pay includes your broker's fee. Nonetheless, with a broker's intervention you would still be paying lower than what you paid last year, or the year before. Give a thought to the amount of money already eroded into the insurance companies' pocket. How much of the premium is broker's fee, depends from policy to policy and may range up to eighteen percent of the premium paid.

Alright. So How Do I get one?
Simple. There are many licensed insurance brokers operating in the market. If you are thinking that now you are faced with another tiresome challenge of deciding the broker for you, then let's make it easy for you. Word of mouth, recommendation, striking clientele, remarkable background, years in service, claim settlement records etc. are some ways to help you guide your way to an insurance broker's office. The insurance companies pay the broker on commission. This can lead to a situation where brokers might be tempted to recommend an insurance company or a type of insurance that gives them a bigger commission rather than the company that is best for the insured. Therefore, it is important to discuss your broker's remuneration with him before you hire him as "Broker on Record".

This expert shall look after your insurance needs, while you can pay attention to more demanding financial issues and to read between those fine lines for you. So settle down in your recliner for you have just now outsourced your insurance worries to someone else; someone who has made insurance more easy and accessible for you.

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