Monday, December 27, 2010

Insurance Brokers, Insurance Broker

Insurance Brokers, Insurance Broker

Insurance brokers are people who possess specialized knowledge in the field of finance. They play an important intermediary role between the customer and the insurance company. They are also known as insurance agents. An insurance broker can be either of the following:
# An individual
# A commercial business entity

Insurance Brokers: Well Informed and Unbiased

Insurance brokers or agents have a thorough knowledge and extensive experience in the insurance sector and are quite conversant with the contingent risks of life and their possible risk-management. They actually broker the insurance deal between the insurance company and the consumer and in lieu for this, extract a commission.

Insurance brokers are basically financial planners who acquire suitable insurance schemes in accordance with the needs of the insurance clients. Insurance brokers are not tied to any specific insurance companies but to multiple ones. So, there is little chance of them favoring insurances of any specific company/companies. An insurance broker is expected to perform extensive research while choosing the right insurance scheme/policy for the client’s requirements without any prior biases.

Insurance Brokers: Serving a Large Client Base

The job of an insurance broker varies from firm-to-firm because in such cases, size does matter. In large business entities, they have a wide range of client base along with their wide range of requirements. However, it is impossible for a single broker to meet all these need. So, each broker in a big business house has categorical specializations according to the needs of the clients.

Insurance brokers in small business entities who have comparatively less businesses and a small number of clients are required to do all the associated work themselves.
Insurance Brokers: A Brief Job Description

Generally, an insurance broker is involved with the following work:

# Acquisition of clients in need of insurance - Even if people don't have the demand for insurance in a specific field, brokers generate this demand through advertisements and other methods. This is known as business development.

# Giving proper and adequate service to the client to maintain an ongoing relationship between the insurance company and the client - This is commonly known as servicing of client.

# Constantly remaining in touch with the clients and catering to their problems by gathering proper information and assessing their risk profile and requirements.

# Renewing the policies of the existing clients in a hassle-free manner and with appropriate judgment and guidance.

# Giving proper advice to clients in a customized way by gauging their risk profile coupled with extensive research.

# Keeping abreast with new policies and schemes of the insurance companies so that they can choose the right policy for their client’s personal needs.

# Collecting regular premiums paid by the clients.

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