While insurance brokers give advice and help to simplify procedures when customers submit a claim or receive compensation, their independence and impartiality leads many customers to use their services as a mediator when taking out insurance.
What are insurance brokers?
Insurance brokers mediate between insurance companies and users. The professionals working in brokerage offices are experts in all matters relating to insurance, and are therefore trained to advise the customer on matters such as: which company offers them the most advantages and which insurance policies they should take out from the wide choice available on the market.
Main functions of an insurance broker
The insurance broker is the main professional in a brokerage, and his/her main functions include:
Advising customers on insurance companies, policies, possible offers, discounts, etc.
Contracting the most suitable insurance for their customers’ needs with the companies that offer most advantages.
Managing procedures for customers: changing company so that customers always obtain the best conditions, helping customers to report an incident and even doing it on their behalf, carrying out any type of administrative work necessary.
Acting as a mediator between the insurance company and the customer, especially if there is any conflict regarding compensation, making the relevant claim if it is considered that the insurance company is acting against the customer’s interests or rights.
Advantages for the customer of contracting insurance brokerage
An insurance broker is, by definition, a professional whose business does not involve contractual links with a specific insurance company. This gives brokers great independence, allowing them to offer, objectively and without pressure, options regarding companies and types of insurance that are advantageous for their customers. This is the most important advantage of using the services of an insurance broker.
However, the customer will also benefit from the insurance broker’s experience and knowledge of the market. The broker will inform the customer about the insurance companies and policies that best suit their needs, advising them on the most favourable conditions and ruling out additional guarantees that are likely to increase the premium without offering any real advantage.
Apart from these functions, related to advice, contracting and procedures, an insurance brokerage can also offer customers other types of service that provide security and peace of mind:
Guaranteed protection of insured assets.
Comparison of offers available from various insurers to choose the most advantageous. This includes analysing the different offers before renewing an insurance policy, always looking for the best option for the customer.
Carrying out all necessary procedures, including some that may take time, such as the collection of information and data to report an incident or make a claim because the customer disagrees with the insurance company’s decision to pay compensation or otherwise, or with the amount paid.
Reasons why it is advisable to contract the services of a broker
Basically, taking out insurance through a brokerage is advisable because it helps customers to make the best possible decision when choosing a company and the type(s) of insurance they need.
This is the most obvious advantage, but there are other benefits, as an insurance broker will subsequently help the customer to deal with sensitive or complicated issues, such as: what action to take in the event of an incident, how to make a claim or deciding whether or not to renew with the same company.
An insurance broker is a guarantee of objectivity and independence, since their role is to inform customers clearly and concisely of the different options they have when contracting insurance, always based on objective criteria. As they do not belong to any specific company their independence allows them to act honestly and transparently.
An insurance broker will also be very helpful in negotiating with the insurer, protecting customers and representing their rights, ensuring that the conditions agreed in the insurance contract are met at all times.