the role of a good broker

The Role of a Good Insurance Broker

In an ever-changing and complex market, more Australians than ever are realising the value of using an insurance broker to help manage risks and assist with financial protection through insurance. Over the last two years, research has shown that 72% of businesses that made their claim through a broker were ‘satisfied’ with the outcome, compared to direct claimants. But what value can be found from availing the services of an insurance broker?

Read on to find out on the role of a good insurance broker.

What Does an Insurance Broker Do?

Simply put, an insurance broker is a professional adviser who works in consultation with clients to understand their requirements, and how the right insurance policy can be used to protect their assets and businesses. The on-going repercussions of the pandemic and the uncertainty it brings has highlighted the value of having a risk and insurance expert on call.

Choosing insurance is a complex purchasing decision especially with a variety of options to choose from. Good brokers provide guidance on the management of financial risks and use their in-depth knowledge of the insurance market as well as their industry connections to identify and negotiate a suitable policy – for both, individuals and businesses. As such, an insurance broker works for you and acts in your best interests.

The Benefits of Using an Insurance Broker

Availing the services of an insurance brokers provides you with a range of benefits:

  • Access to the expertise of qualified professionals

In Australia, insurance brokers are required to have their Tier 1 and Tier 2 in general insurance compliance with many possessing additional qualifications as part of their resume. They are also required to hold an Australian Financial Services License (AFSL) or be authorised by a license holder. Furthermore, most insurance brokers undertake on-going industry training each year to remain up-to-date with industry standards and new products available – assisting you to make informed decisions.

  • Knowledge on the fine print

As specialists in the field, insurance brokers provide technical advice that cater to your unique circumstances. Insurance policies can be complicated to decipher – brokers help you makes sense of it all and determine a suitable cover to ensure you are properly protected.

  • Save on time, money and worry

With a number of options to choose from, it can be difficult to know it all. A broker’s knowledge of the market combined with their network connections help them to stay on top of what’s available – saving you time, money, and stress.  Their expertise and influence also enables them to negotiate with insurers on behalf of clients. Insurance brokers are aware of the benefits, costs and exclusions on a wide range of insurance policies to provide guidance on how to make the best use of your insurance budget.

  • Management of claims

Brokers can act on your behalf to manage claims, making your life a whole lot easier. They’ll lodge your claim and follow up with the insurer to ensure you receive the best possible outcome through a quick and painless process. Also, their industry knowledge allows them to inform you on what’s required in terms of documentation, helping you avoid potential delays.

  • Risk assessment

It’s commonly known that businesses in Australia are underinsured, which can lead to significant issues when making claims if risks are not adequately covered. Brokers understand your unique circumstances and are able to identify areas of risk that need coverage.

  • Personalised service

When you engage an insurance broker, they work for you – compared to an insurance agent who usually works on behalf of an insurance company. Brokers foster their relationships through collaboration, meaning you will always receive personalised advice instead of cookie cutter solutions. Sometimes a customer might choose to insure directly, making decisions purely based on low prices which could backfire when making a claim if they are not adequately covered for the loss incurred. Brokers can review insurance options to provide tailored advice and risk management strategies to ensure you are properly protected.

  • Regular reviews

As a busy professional or business owner, your insurance cover can be an afterthought – only considered around renewal time. An insurance broker takes the hard work out of constantly reviewing your current policy for potential updates. As they have the industry knowledge and training required, a broker can negotiate with your current insurer around premiums or approach a different provider that is more suited to your needs.

A trusted broker is committed to putting your interests first, providing you with the confidence on what to expect and helping you manage the potential risks involved to successfully protect your assets.

If you’re interested in more information about enlisting the services of an insurance broker, get in contact with our team at Provide Insurance.