What Is an Insurance Broker: All You Need to Know
If you’re thinking of getting insurance, chances are you’ve considered an insurance broker(or we like to call them Insurance Advisors). The problem is that not everyone knows what an insurance broker is.
To help, we’re going to explain what a broker does, why they should be used, how they’re licensed, and some more frequently asked questions about insurance brokerage firms.
Insurance Brokerages: What do They Do?
Insurance brokers are people who are licensed to sell insurance. Sometimes they are employees of a brokerage, and sometimes they operate independently.
Insurance brokers have to be knowledgeable about the different types of insurance, and the rates associated with them. A good insurance broker will get to know you, and help connect you with the policy that makes the most sense for you.
Why Use a Broker?
Insurance brokers are certainly qualified to sell insurance, but why should you use one? The simple fact is that insurance brokers have the ability to really get to know different types of insurance, and what types of policies are available. Insurance brokers can also specialize, giving you the best opportunity to find a specific policy that makes sense for you, like tenant insurance, or snowmobile insurance.
Insurance brokers will normally work with several insurance companies. This enables them to find the best rate for you. Since they are dealing with insurance companies in bulk, they’re much more likely to find a great rate that might not be available to a private citizen. This can mean that insurance brokers might have rates and policies that can’t be compared to the types of rates you would find based on your own efforts.
Since insurance brokers have relationships with the companies you’re insured by, they can also greatly assist during the claims process.
Insurance claims are a complex and often challenging process for the average consumer. Since most individuals make very few insurance claims in their life, they would have almost no experience with the claims process. Insurance brokers are much more likely to be experienced and familiar with the claims process and can help expedite and assist you.
After all, the insurance claims process often begins after a difficult or traumatic event, and we could all use a little help during those times in our lives.
We mentioned that specialization is a major component of what makes working with an insurance brokerage a great option. If you’re looking for a specialized type of insurance, finding a broker who exclusively deals with that type of insurance will be your best bet. Got a new motorcycle? A broker who has negotiated hundreds of motorcycle-specific insurance plans can help you in ways you’d never consider.
In short, brokers are there to help the customer connect with the right plan, at the right price, and on the right timeline.
One aspect of working with an insurance broker that we feel is very important has to do with the licensing associated with the profession. Since insurance brokers have to be licensed, you know that you’re dealing with a professional. There are insurance brokers associations in each province in Canada, which helps to make sure that there is a provincial level of oversight for the entire industry.
In essence, insurance brokerages are safe, trustworthy professionals who undergo training and certification to be able to operate. The insurance brokerage industry is large and competitive, and there are many amazing insurance brokers who want your business and are able to help you find a great rate.
Insurance brokerages are also equipped with the knowledge and experience of working with insurance companies. Because of this, they can give you expert advice on what policies make the most sense for you, and how best to get them.
The insurance process can be intense for first-time buyers. A broker can guide you through in a way that makes sense to you, on your timetable.
In this modern age, more and more insurance customers are turning to online brokerages. As Canada’s fastest-growing online insurance provider, Surex can offer the personal help of an insurance broker, tempered with relationships with Canada’s 10 biggest insurance carriers. This means that you’ll be exposed to the best possible plans and deals, without leaving the safety and security of your home. That's the big advantage of working with a broker that embraces technology! With over 45,000 happy customers, Surex is sure to make the insurance industry easy and accessible to you. Online brokers have even started to incorporate technologies like artificial intelligence into their service. Click here to read more.
How do Insurance Brokers Make Money?
Insurance brokers are normally paid through commissions and fees. They make a commission based on the policies that they sell to clients. This means that they’re incentivized to find the best policies for their clients so that they can continue to operate. Check this article about insurance myths and facts as well.
Frequently Asked Questions
What is an insurance broker?
An insurance broker is a licensed professional who is equipped to help you find the best insurance policy possible. They generally operate outside of the insurance company by connecting carriers with clients.
What do insurance brokers do?
Insurance brokers work with insurance companies to connect customers with the insurance policies that best meet their needs. Using their relationships with insurance carriers, brokers are able to connect their clients with the policy that represents the best fit.
Is it cheaper to go through an insurance broker?
Generally, yes. Insurance brokers are able to work in bulk with insurance companies, and often have access to plans and rates that aren’t available to individuals.
How do I choose an insurance broker?
- Look for highly rated and recommended brokers. Asking your friends and family for a recommendation can be helpful, as brokers who have satisfied clients will often get more business through recommendations.
- If you have a specific type of insurance you’re looking for, finding a broker who specializes in that type of insurance can be a great advantage. We’ve encountered insurance brokers that specialize in people who train martial arts, people who work in the cannabis industry and other high-risk jobs, farming crop insurance, and many others.
- Look for a broker that offers you personalized advice, and helps you find a policy that you’re comfortable with. A broker exists to help you. If you let them, they can empower you through a plan with coverage that you need and a premium that fits with your finances.