Foreword
The success or failure of an insurance business depends to a large extent on the performance of its marketing and sales efforts and the home insurance business is no exception in this respect. The marketing and sales efforts of the insurance companies depend on their broker and agent network and in their own ways the agents and brokers contribute toward this growth. The home insurance brokers operate under the same set of regulations as any other insurance broker and in most cases actually offer many other insurance products and services apart from home insurance. Therefore it is convenient to term the home insurance broker simply as the insurance broker.
The insurance broker
An insurance broker represents a minimum of three insurance companies unlike an insurance agent who represents just one company. An insurance broker is the focal point between the insured and the insurer and obtains quotes from various insurers and advises his client (the policy holder), on the right plan that he should go for. Insurance brokers also play a major role in facilitating client servicing but unlike insurance agents, the brokers are answerable to several insurers. The commission structure of the brokers also varies with respect to the different factors that normally impact insurance.
Professional code of conduct
Insurance brokers are given the required training by the insurance company he or she represents and normally have a code of conduct to follow. Above all they are required to be more professional than an insurance agent. Insurance brokers will have stringent regulations and minimum capital norms to comply with as laid down by the insurance regulator.
Product information
Insurance brokers are well versed with every product feature of all the insurance companies they represent. This is a basic necessity because the brokers have to ensure maximum satisfaction for their clients by offering advice on the risk products they sell. Insurance brokers are normally in a position to offer a whole range of risk products of several companies with various options to meet the growing insurance requirements of the consumers.
Brokerage
The insurance regulator lays down the necessary regulations about the broker's fees that range from 15 % to 35 %. Sometimes customers want to know about the extra cost they think they are bearing due to brokerage and in such circumstances the well organized brokers are in a better position to handle the queries.
