Is insurance cheaper going through a broker?
Insurance is a contract between the insurance company and the insured customer in which the insurance company would settle the loss or damage faced by the insured customer due to an insured peril acting at the time of loss or damage in return for a nominal amount known as premium. Insurance companies employ intermediaries to sell the insurance products who in turn help in increasing the reach of the company among the masses. One such intermediary is an insurance broker who acts as a bridge between the insurance company and the insured customer in facilitating the sale of insurance products as per the needs and requirements of the customer.
Insurance broker is an insurance intermediary who sells, solicits and negotiates insurance with the insurance company on behalf of the customer. An insurance broker is experienced in different types of risks and is a risk management specialist. An insurance broker acts on the behalf of their clients and provides advice in the best interests of their clients. A broker will help you identify your business requirements and suggest you the best insurance policy and help you decide on what to insure and with whom.
Insurance brokers are aware of the terms and conditions of all the insurance policies from all the insurance companies as they deal with different insurance companies. This gives a cutting edge advantage to the brokers as they know what is required for customers. Insurance contracts are usually complicated in their understanding of terms and conditions which makes it difficult for the customers to understand and purchase it on their own. An insurance broker can help the customers with the best insurance product as per their needs and requirements.
Brokers can even prepare a customized insurance and risk management program for your organization based on the inputs and other factors and design the portfolio in such a way that the risk management is done in a proper way and the risk is transferred from the customer to the insurance company. An insurance broker is the only insurance intermediary legally liable for their decisions and deficiency in services which means that if a customer feels that they have faced deficiency in services from the insurance broker, then the customer can sue the insurance broker in the court.
Since brokers deal with more than one insurance company and are capable of negotiating the prices on behalf of the customers, it can be said the insurance premium payable would be less if you go through an insurance broker. On top of this insurance brokers offer add-on services such as the Ethika insurance broking’s red carpet claim assistance program under which they provide end to end claim assistance service by coordinating with all the departments. Employee happiness program under which the broker would be conducting sessions to ensure the employee lives a happy life.
Insurance brokers can get the insurance quotes from different insurance companies and negotiate strongly with the insurance companies to place the business. Insurance brokers would get a certain percentage of the premium paid by the customer as commission to provide services to the customers.