When the term 'insurance broker' is thought of, it's often with the idea that having a man in the middle would be an interference rather than a help. People often feel that using a broker would result in more hassle and add to the cost of their insurance, but this isn't true and using an insurance broker can provide many advantages.
Specialists
In the same way that accountants are specialists in their field, insurance brokers are specialists in the world of insurance. They are required to undertake training and have worked in this field for several years, so they are familiar with the ins and outs of insurance. This also means that they can offer expert advice and have access to insurers that might not deal directly with customers.
Brokers are independent
While brokers work alongside insurers, they aren't tied to only one provider. So, while insurance companies can only offer you one policy, a broker can offer you many options from many different providers based on your specific requirements. Brokers represent their clients, not the insurer so they will work in your best interest to ensure your assets are properly covered. This means they can offer cover for things comparison websites might not like high-value collections, income protection and listed building cover. A broker will take the time to get to know you and the particular requirements of the policy and use their access to the insurance market to find an insurer that will provide cover for those needs.
Price
Brokers are paid a commission by the insurer for selling their product, so no additional cost in incurred by the consumer for having a broker look around. Brokers are also able to obtain better prices for their clients as they are trusted to fully assess their clients' needs and risks before seeking insurance policies. It's much more cost-effective for insurance companies to work with brokers because they are dealing with professionals in the same industry, these savings can then be passed on to the brokers' clients.
Claims
One of the key reasons to use an insurance broker is the assistance they can provide in making a claim. Thanks to their specialist knowledge of the insurance industry, they can better help their clients understand the terms of claiming on their policy. Brokers represent their clients, not the insurer so having someone on your side that understands the technicalities of the policy can mean the difference between making a successful claim or not.
All insurance brokers should be regulated by the Financial Conduct Authority so check on their website before you provide any personal information.
