- Staff Reporter | May 28, 2018
Insurance is generally divided into two streams — personal and commercial.
Insurance brokers work with a range of insurance companies across many economic sectors. Companies cover or back the policies, including life insurance, vehicle, business, home and travel insurance, and brokers manage the relationship and needs of the client. Insurance brokers don’t work for one insurance company (as an agent would). Instead, they look at a range of companies to work out which one best suits their client’s requirements. They also deal directly with the company so the client doesn’t have to. Therefore, brokers will be in constant communication with insurance companies on behalf of their customers. The emphasis is on representing the client over the insurance company so that the client’s best interests are served. Instead of dealing directly with an insurer, some prefer to use a broker as the middleman to reduce the hassle of shopping around for policies. Most insurance companies will encourage people to use their services directly; however, others, such as Allianz Australia, will provide a commission to insurance brokers who recommend them. The global insurance industry is worth an estimated $5 trillion. With the rise of InsureTech, traditional insurance companies risk losing their competitive edge as new start-ups use modern technologies and sophisticated market analysis to draw in new customers. Insurance brokers will work with insurance companies to determine the specific pros and cons of each policy to determine the best option for their client. This includes conducting risk assessments and advising their client on what they are covered for and the costs involved. Sometimes, it is difficult as a customer to work out what level of cover you need, which is why insurance brokers are generally regarded as a trustworthy and important service. Brokers might also have special prices determined with the companies they work with, which might be of better value to customers as opposed to them shopping around themselves.