Insurance Broker: Types & Benefits

What is an Insurance Broker?

• An insurance broker is a specialist in insurance and risk management.
• Brokers act on behalf of their clients and provide advice in the interests of their clients.
• A broker will help you identify your individual and/or business risks to help you decide what to insure, and how to manage those risks in other ways.
• Insurance brokers can give you technical advice that can be very useful if you need to make a claim.
• Brokers are aware of the terms and conditions, coverages and exclusions and costs of a wide range of competing insurance policies, so they can help you find the most appropriate cover for your own circumstances.
• Brokers can help arrange and place the cover with the chosen insurer.

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Different kinds of Insurance Brokers:

1. Direct Broker

A direct broker is one who obtains insurance policies and assists customers with the policy buying procedure. The Direct Broker receives his fee and/or remuneration from the insurance company whose policy is opted by the customer.

2. Composite Broker

Composite Insurance Brokers are licensed to provide services for both life and non-life insurance. The composite broker can also provide reinsurance services for their clients. The insurance companies and authorities are selective while issuing license of composite brokers.

3. Reinsurance Broker

A?reinsurance broker, as the name suggests, is a broker who purchases reinsurance for his client by negotiating rates and selecting the best policy. They also provides claim consultancy, risk management services and other similar services permitted under IRDAI (Insurance Brokers) Regulations 2018. The insurer can be located in or outside India.

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Benefits of An Insurance Broker

• Helps in saving time, effort and energy.
• Well-equipped with the best available insurance products.
• Helps you to assess the level of risk and provide ways to manage it.
• Offers expert advice on various insurance policies and helps you to choose right amount of coverage.
• Helps you in claim advocacy and claim settlement process and liaise with the insured to negotiate for the best possible claim outcome.
• Have the ability to negotiate competitive premiums on your behalf.

Regards, Prachi

Source: #Internet

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