What is an Insurance Broker?

Federal Minister Bill Shorten recently spoke to an Industry group and stated the following; "While I believe that consumers generally understand what Insurance brokers are, consumers are not fully aware of the important role that Insurance brokers play in the market." Put simply people know who brokers are, but not what we do.

It's sad because when you consider Insurance brokers have been around for many many years and yet the market still does not fully comprehend the role within the framework of their business. Particularly within our home region as we have had strong Broker presence for decades. If our market still does not grasp our role then what are we doing wrong in selling the value of partnering with a broker to protect your business.

Far too often Insurance is portrayed in the media as this light fluffy almost comical thing. We seem more wrapped up in whether Rhonda and Ketut hook up then what an Insurance company can do for you when you need it most. Unfortunately this type of advertising has been going on for as long as I can remember and all it does is devalue the role of insurance in not just your life but in the broader economy. Even Insurance Brokers when advertising try to take a light comical view of what we do. It does nothing to enhance value or show what it is we do.

 

From the National Insurance Brokers Association (NIBA); "Insurance brokers are professional advisers who work on behalf of their clients - not insurance companies. The job involves analysing ‘risks’ to help people decide what needs insuring and what can be managed in other ways, a main aspect of the broker’s role is to assist clients to manage their risks by arranging and putting in place insurance policies."

 

An insurance broker has a fiduciary duty to act in the best interests of their client and provide sound practical advice which is independent of any insurance company's influence. Put simply, we work for you!

 

So often we hear clients or businesses say "You Insurance Companies are all the same," to us. When we hear this consistently it only drives home the fact that the message is not out there. Insurance Brokers work for you NOT Insurance Companies. We place Insurance through a number of insurance markets attempting to best cover your unique business risk at a competitive price.

 

This doesn't mean it will be the cheapest every time. Often when you aim for cheapest you end up paying more come claim time. It's like when you have 4 identical cars side by side yet 3 are priced at say $50,000 and one is priced at $30,000. On the surface yes they look and feel the same but underneath the bonnet there are dramatic differences.

 

An Insurance policy is exactly the same. We had a client move onto a direct Insurer recently who for their particular risk was $400 cheaper. They assured me the cover was the same. When I reviewed who they went with this was far from the case. The company we placed them with had a lower excess. It had additional benefits over and above the Sum Insured, NOT if the Sum Insured is not otherwise exhausted. It had cover away from the home, not just within the property........ I could go on.

 

So the benefit of dealing with Insurance brokers is that you know someone is looking after your interests. We also assist you when claims arise. I mentioned in a recent memo that our commitment to our clients was given the toughest challenge over January and February with a high volume of claims being made.

 

Not all brokers will do everything for you come claim time but this is a commitment we stand by. Hence when NSW was smashed by wild storms we put our backs to the wall and started lodging claims, appointing assessors, interpreting the policy and providing general comfort. Over the past month we have taken some time to simply do a run around of a number of clients who suffered damage. After getting them through the initial pain we continue to support throughout. Claims are ongoing and some in dispute which we are now working with our clients on.

 

For business and individuals this means you have someone taking the fight up to the insurance companies if you believe something is not right. We can also advise on policy conditions and better educate you on why a claim was or wasn't paid. If there is a dispute we know the process and can guide you through it. Insurance can be a complex area so having someone who is qualified in the industry work on your behalf can only be beneficial. You get on with running your business and leave all this up to us. Business is hard enough without worrying about having the right insurance. Let us handle this for you. We notify you that renewal is approaching and do a review, you call us for advice, we handle your claims and negotiate with the insurers from a position of knowledge and strength.

 

To summarise if you need legal advice you use a solicitor. If you need to know how to minimise your tax you use an accountant. So it stands to reason that if you want to protect your business you talk to an Insurance Broker.

 

AT IAA Mid North Coast we put you first!

 

 

 

Information provided is of a General Advice nature only. Information courtesy of Insurance Business Magazine issue February 2013, NIBA and Complete Risk Solutions Pty Ltd.