Insurance Broker

Insurance Broker is a person having specialized knowledge in the field of finance who play the important intermediary role between the customer and the insurance company. They are also known as insurance agents. Insurance broker can be either of the following two :-



Individual Professionals

Commercial Business entities


Insurance brokers or agents have thorough knowledge and extensive experience in the insurance sector and are quite conversant with the contingent risks of life and their possible risk-management. They actually broker the insurance deal between the insurance company and the consumer and in lieu extract a commission. They are basically financial planners who find out suitable insurance schemes in accordance with the needs of the insurance clients. Insurance brokers are not tied to any specific insurance companies but to multiple ones. So, there is the least chance from their part to favor insurances of any specific company/companies. It is expected from a insurance broker that he would perform extensive research work while choosing the right insurance scheme/policy for the correct requirements without any prior biases.

The job of an Insurance Broker varies from firm-to-firm because in such cases size does matter. In large business entities, they have a wide range of client base along with their wide range of requirements. This is not possible for a single broker to meet all the needs of all the clients with their variety of needs. So, each broker in a big business house have categorical specializations according to the needs of the clients. But Insurance Broker in small business entities, who have comparatively less businesses and small number of clients, have to do all the works associated with them.

Generally the works associated with the Insurance Broker involves :-

Acquisition of Clients in need of the insurance. Even if people don't have the demand for the insurance in a specific field the brokers generate such demand through advertisement and other methods. This is known as Business Development.
After acquiring the client, the brokers need to give proper and adequate service to them for maintaining the ongoing good relationship between the insurance company and the client. This is commonly known as Servicing of Client.
Constantly remain in touch with the clients and cater to their problems through gathering proper information and assessment from them about their risk profile and requirements.
Renewing the policies of the existing clients in a hassle-free manner and with proper judgment and guidance.
Proper advice to clients in a customized way by gauging their risk profile coupled with extensive research.
Insurance Broker should be well versed with all the new policies and schemes of all the insurance companies so that he would be able to choose the right policy for the right personal needs.
Collection of regular premiums paid by the clients also need to be collected on time by the Insurance Broker. In addition to this they are also required to process the accounts of the clients.