What is the Role of Insurance Brokers and how they are Different than Insurance Agents?

insurance broker

When we talk about insurance policies, the very first thing that comes in our mind is an insurance agent or insurance broker. Many people don’t know that the role and job responsibilities of an insurance broker are different from an insurance agent. It is very important to understand the difference between both the roles to make the best use of insurance services to protect business as well as personal interests.

Both the insurance brokers and agents are licensed professionals who help individuals and corporate with insurance policies. The role of an insurance broker is more like an advisor to a consumer and he directly represents the consumer. They don’t sell insurance products but help their clients to find the right insurance policies and risk coverage as per their needs. They provide all the essential information related to different insurance companies and their policies to make a comparison. In a way, they help their clients to find the right insurance policy and protection plan while focusing on their business growth or personal lifestyle depending on if the client is looking for individual insurance plans or corporate insurance plans.

Insurance Broker vs. Insurance Agent

An insurance agent directly represents an insurance company and focuses on selling insurance products to consumers on behalf of the company. Unlike an insurance broker, an insurance agent only targets to increase the sales of the insurer by bringing more clients on board. He/she works as a bridge between the insurance company and consumers for selling insurance products. An insurance agent offers products of a company and gives a detailed insight of the product to the consumers. He also helps clients with paperwork and premiums for the chosen insurance plans.

In general, if you are looking for a new insurance policy and not sure about which insurance policies from which company will be best for your needs, then you should go to an insurance broker. Insurance brokers work with different insurance companies and keep an eye on the market to help their clients get the best coverage plans. They are equipped with technical knowledge and expertise to serve their clients with their insurance and financial planning.

An insurance broker performs the following duties:

  • Risk analysis and evaluation based on client’s business information
  • Research insurance policies, coverage plans, terms, conditions, and prices on behalf of the client
  • Give appropriate advice and insurance solutions to the clients
  • Keep updated with the insurance market and policies
  • Negotiate with the insurance companies on behalf of the client
  • Responsible for progress reports and written acknowledgments
  • Offers insurance consultancy during negotiations, claims, risk management, and premiums

There are many insurance broking companies that closely work with their clients to craft their coverage plans as per their needs. They offer all kinds of insurance and investment solutions to their clients. If you are looking for insurance broking companies in UAE, you can connect with the professionals and experts at New Age Insurance Brokers for the quality of services. They have years of experience in providing insurance consultancy and solutions as per the clients’ demands.