An insurance broker is not an employee of the insurance company, but a freelancer who sells insurance on commission basis and they are an important cog in the wheel. They are the bridge between the customers and insurance providers and play a huge role in bringing business to the company. The ideal role and responsibilities are to search down the probable client and back them with the best policy that satisfies their needs.
Role of Insurance Brokers:
Finding probable Client for the company – Brokers find their clients through calling from the database to set an appointment, or through word of mouth.
The prime role of a broker is to come, visit the client, and try to figure out his needs i.e. what he wants through insurance –only wealth creation, only protection or a combination of both. The meat of the story he is to suggest the right policy/policies for the client and cover his future financial needs of the family.
Another important role is to settle the claim and provide the best assistance to the client. They guide the client and at the same time deals with the company on behalf of the client.
Sometimes the need of the customer can actually be multiple policy needs like life, Accidental, motor and health, so he can take the role of multiple insurance brokers and can solve the problem.
The negative side of this kind of broker is that they may become biased to sell those policies, which will give them a high commission because of high premium sacrificing the Company policy of Fair Business policy. Subsequently, they will confuse the customer and will do the wrong thing. The whole result is the customer will find out after some time the solution he got is actually not going to solve his problem and hence he will apply for cancellations. This always brings bad name to the company and it spread to other probable customers.
The Research the Client must do to protect his interests
Insurance is a method to increase wealth, get coverage and future protection. The need of any customer varies with these parameters. Those who will look for wealth as its main criteria they will never care about premium value and will go with those policies which will be fast growing in terms of wealth generation. Here the coverage will be average but returns will be high at the end of tenure. These policies will be of the short period. Those who will look for long-term policy will always look for better coverage and secured future with average returns.
When the client is searching for right insurance broker, he can go to the web to find a list of renowned agents. He should check the credibility of the insurance agent and choose those who come under Federal control and government laws. This provides security to the investor regarding the safety of their investment.
To search for the right policy with lower cost in terms of the lower premium, the client must check the web and make a comparison of the different policies offered by those companies. This will clear the client to bottom down to a company from whom he might choose the policy. So if the brokers try to misguide him, he can immediately react.
Though it is expected from the brokers that they will provide us the right policy, but it is the duty of the client to check out various benefits and the return inbuilt in the policy and then invest in the insurance sector and buy safely different policies.