Undoubtedly, the insurance industry has carved its niche in the business sector. More and more insurance companies have surfaced over time. Also, with the relative increase in the world’s population, the insurance industry has achieved a greater opportunity to heighten its popularity. Insurance companies specialize in a lot of fields such as health insurance, auto insurance, motorcycle insurance, life insurance, real estate insurance, and many more. To further disseminate the service they render to the public, insurance companies hire insurance brokers to handle the job.
Who is an insurance broker?
Insurance brokers or insurance agents act in behalf of their potential customers or those who act in the place of a principal. They handle all matters in the negotiation. In a selling business, when the agent acts in behalf of the buyer, the insurance broker is called a buyer agent. On the other hand, if the insurance broker acts in behalf of a seller, then he is termed as a seller agent. Moreover, an insurance broker is the representative of the insurance firm who tackles the selling of insurance policies to a number of third parties who are interested with the deal.
No matter what role the insurance agent plays for, there still remains the fact that the insurance brokers are paid and an ample amount for his or her fee. An insurance broker may work full time as compensated with a fixed wage, a salary added with the rightful commission, or solely for a commission alone. Likewise, an insurance broker may work for
various insurance firms based on his field of expertise. It is in the onset of the Insurance Brokers Act 1977 which highlighted the regulation of the term insurance broker. Such scheme had been designed to put a stop to the spurious custom of insurance companies who more than enough term themselves as insurance brokers when in fact they do merely act as representatives of even a chain of preferred insurance firms.
The Real Score of a Broker
Insurance brokerage basically covers general insurance forms such as autos, house, land, and so on. It is not much related to the field of life insurance although there are some firms who continuously adhere to such technique. Moreover, insurance broking is handled by a myriad of corporations which include telephone companies, web-based industries, traditional brokerages, and the chain of Independent Financial Advisers or IFAs.
Why the need for an insurance policy?
Regardless of the type of insurance policy which you as a potential buyer need to avail of, you cannot deny the fact that such insurance policies are important. You never know what may happen in the near future and if you would often secure yourself and your loved ones, getting an insurance policy is the best option.
Your life and your property might be insured. We all live in a world filled with uncertainty. There are numerous news outbreaks about the natural calamities such as hurricanes, earthquakes, and other deluges. Plus the fact that any moment problems may arise, make you lose your possessions and leave you broken in the end. Life is utterly precious so you’ve
got to be rest assured that you and your loved ones are always on the safe side.
Basic Responsibilities of an Insurance Broker
It is the primary job of an insurance broker to attract potential customers and convince them to have themselves or their properties insured. As an insurance broker, it is also his task to collect the rate of the premium as the insured party issues the payment.
Selling of various insurance policies whether it be for the home, for a vehicle, for medical or life needs and assisting the insured parties when it is time to claim their benefits during any disaster are among the basic responsibilities of an insurance broker.