ROLES AND EXPERTISE OF INSURANCE BROKERS

An insurance broker is a professional who offers, negotiates, and sells policies. He acts as

intermediary between insurers and customers and receives compensation.

An important role of brokers is to help insurers to assess the types of risks they face. Risks

include natural hazards such as bad weather, hurricanes, tornadoes, fires, and floods. At the

same time, brokers act on behalf of and in the interest of customers. They do comparison

shopping to find the best deals and offer policies from more than one insurance company.

Brokers also help their clients to outline risk management strategies, which are suitable for

their profile. There are different types of risk to look into, including natural disasters, car

accidents, credit risks, cash flow problems, legal liabilities, and others.

Work Activities of Brokers

Insurance brokers consult clients and gather information for them. This is important as to

understand their specific needs. They negotiate with insurance companies to be able to offer

the best terms and premiums to clients. In addition, they help clients to mitigate risks and

come up with working risk management strategies. For instance, they may have to install lock

technologies, home security systems, surveillance cameras, and fencing to prevent burglary.

They also advise clients on how to reduce their car insurance premiums. This may involve

lowering coverage on old trucks and vehicles, raising the deductible, using one insurer only,

and other strategies. In addition to advising clients, brokers handle policy renewals and

amend policies, if required.