All you need to know about the insurance Brokers

All you need to know about the insurance Brokers Buying one’s insurance is something that requires a considerable amount of time, expertise and knowledge. Many people buy the wrong insurance because they went through the decision hurriedly or had insufficient information on the insurance and its terms. That is where the necessity and importance of […]

All you need to know about the insurance Brokers

Buying one’s insurance is something that requires a considerable amount of time, expertise and knowledge. Many people buy the wrong insurance because they went through the decision hurriedly or had insufficient information on the insurance and its terms. That is where the necessity and importance of an insurance broker are realized.

Who is an insurance broker?

Of course, to hire the best insurance brokers you need to understand who an insurance broker is as well as the duties, responsibilities, and expertise of the insurance broker. An insurance broker is an expert in insurance who uses his/her knowledge and experience to work in the best interests of the client. The insurance broker plays more than just an advisory role. The broker also helps with assessing risk, choosing the perfect insurance to cover the risks, and offering assistance in the event of a claim.

Why use an insurance broker?

After a little market research, you might feel confident enough to deal directly with an insurer or insurance agents. However, even then, it is still advisable to use insurance brokers for a number of critical reasons.

  • Professional expertise
  • An insurance broker brings training, skill, and experience to the table. All of which are valuable aspects that have been put to the test many times before, and over the years. Of course, that doesn’t mean that years of experience are guaranteed but they should definitely be a consideration when choosing an insurance broker. Therefore, you can rest assured that the information you get is information that is already tested and proven. In the risk assessment, for instance, insurance brokers in UAE give you a targeted assessment of your personal situation, keeping in mind the insurance covers available for such risks. Additionally, you get valuable advice and information on what to do to mitigate against those risks that do not have any insurance cover in UAE.

  • Have your best interests at heart
  • Dealing directly with the insurer or through an insurance agent means that the kind of information you get is tailored to push forward the insurer’s bottom line. Your interests, in this case, come second. However, by using an insurance broker, there is a guarantee that the information and advice you get is in your best interests.

  • Clearing through the fog of information
  • A little market research proves that there are many insurers and insurance agents in Dubai, let alone the entire UAE, all who seem to be offering the same kinds of insurance. It is difficult, therefore, for an individual to sift through all that information and find the best insurer with the most benefits and least inconvenience. On the other hand, it is an insurance broker’s job to comb through the information and find you the best kind of insurance. Thus, your best and most guaranteed method of finding the most advantageous and convenient insurance is by using insurance brokers in Dubai.

Which type of insurance do brokers offer?

Like insurance agents, insurance brokers in UAE deal with and offer all kinds of insurance. Most focus on the more common types of insurance such as health and life premiums, home insurance, commercial insurance, and automotive insurance. Nevertheless, a broker can definitely offer other less common types of insurance depending on your needs, budget, the availability of the insurance, risk, and similar factors. General insurance brokers are those that offer any kind of insurance to their clients, but you could also choose one who specializes in a specific type of insurance.

What is the difference between an insurance broker and agent?

There is a lot of confusion for most clients when it comes to differentiating between insurance brokers and insurance agents. This confusion can be costly, especially when looking for insurance brokers online since the wrong search might lead you to an insurance agent instead. How then do you differentiate the two?

  • The clientele
  • This is the most defining difference between the two. An insurance agent works for the insurer and therefore, has the best interests of the insurer in mind. On the other hand, an insurance broker works for you or the individual looking to buy insurance.

  • The payment
  • While an insurance agent is paid a fixed salary by the insurance company, the insurance broker relies on commissions from insurance sales. The commission is often times paid by the insurance company but there are situations where the broker asks for a commission from the client. It is important, particularly when looking to hire insurance brokers online, that you confirm the payment policy to avoid any inconveniences.

  • The engagement
  • One little-known difference is that most insurance agents work for a single insurance company. As such, the agent is tied to and represents the sole interests of one company. On the contrary, an insurance agent represents your interests and works with different companies. An insurance broker is, therefore, in a better position to get you the best insurance policy.

What are the benefits of choosing an insurance broker over an agent?

  • The client is the primary focus
  • As stated, an insurance broker represents the interests of the client and not those of the insurer, as opposed to the insurance agent. This means that you get services that are tailor-made to suit your needs, with regards to the risks, cost, policy arrangements and terms, among other key aspects. In this respect, you get a personal expert advisor and advocate. The broker not only guides you through the process of assessing risk and picking out the best insurance, but offers assistance when making claims or renewing your policies as well.

  • You are spoilt for choice
  • Unlike an insurance agent who only represents one insurance company, an insurance agent offers you many options to choose from. The broker will assess the different companies and their offers and get you the best deal possible from the options available.

  • Professional handholding
  • As opposed to dealing with an agent, you don’t need to know everything there is about insurance premiums. An insurance broker melts down the technical language into something that’s easily understood. This is besides negotiating with the insurance company on your behalf to get you the best deal possible. More so, your relationship with the broker lasts a lifetime as opposed to an agent who disappears once the deal is done.

  • Custom insurance policies
  • Insurance brokers will negotiate the terms of an insurance policy to ensure you are covered. In such cases, the insurance policy is perfect for you and avoids the ambiguous language often used by insurance companies to create loopholes. When dealing with an agent, you are stuck with the general policy as it is offered by the company, without any fine-tuning.