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Insurance Brokers

Are you familiar with the term insurance broker? In simple terms, an insurance broker is a person who has specialized knowledge in finance and play a very crucial intermediary role between the insurance company and the customer. An insurance broker may have specialization in a particular type of insurance or may deal with different types of insurance, namely, health, home, life, auto as well as other specialized insurances like policies for pets. The insurance brokers can be either commercial business entities or individual professionals.


Insurance brokers have extensive knowledge and lots of experience in the insurance sector and are very much familiar with the contingent risks of an individual’s life and the possible risk management. They create an insurance deal between the customer and the insurance company and in return, they receive commissions. To be more precise, they are basically financial planners who determine appropriate insurance schemes as per the needs and requirements of the insurance clients. These insurance brokers are usually not attached to any particular insurance company but to a number of companies. It is the duty of insurance brokers to undertake thorough research before selecting the right insurance policy for their clients based on their requirements. They should not be biased towards any particular insurance policy.


The duties and responsibilities of insurance brokers vary from one firm to another since size does matter a lot in such cases. For instance, large business entities have a large number of clients and these clients also have a large number of requirements. In such cases, it may be practically impossible for a single broker to cater to the varied needs of the clients. So each single broker in large-sized business houses possess categorical specializations based on the needs of the clients. On the other hand, insurance brokers in small-sized business units having less number of clients have to perform all the work themselves.


The duties and responsibilities of insurance brokers can be summarized as follows.

• It might sometimes happen that people may not have demand for an insurance policy in a particular field. However, in such cases, it is the responsibility of the broker to make them understand the benefits of the insurance policy and create such demand with the help of advertisement and other methods. This is termed as Business Development.
• After acquiring a particular client, the insurance brokers should deliver proper and adequate service to him in order to maintain a good relationship between the client and the insurance company. This is commonly termed as Servicing of Client.
• The insurance broker should also renew the policies of the exiting client base with proper guidance and judgment.
• It is the responsibility of the insurance broker to keep himself updated on the new policies and schemes being introduced by the insurance companies so that he can select that policy for his client which would help his client in meeting his personal requirements.
• An insurance broker should also collect the premiums from clients on time.

Tags: finance, Insurance, policy, risk

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