The General Insurance Brokers play a very vital role globally. The network delivering service to help ensure the consistent implementation of strategy and insurance programs essentially involve the broker in a major way. In insurance and risk management, the broker who is the specialist, helps in identifying, evaluating, reducing and managing risk.
They are the industry experts who use their in-depth knowledge and experience to help the customer decide the right insurance product.
Role of the general insurance broker
The primary role of the general insurance brokers is to motivate the underwriters to accept the risk at hand although the broker has to realize that it is in the best interests of everyone concerned that each case must be considered on its merits and individual problems addressed. There is no standard solution that can transform every risk into an attractive proposition for insurers and this is where the broker’s input will be of great value.
Insurance Program Design
To achieve and maintain the optimum balance between retained and transferred risk for every individual customer the broker’s skill in obtaining and designing market support for more refined programs will be important.
Market Knowledge and Influence
In order to secure cover for their customers at affordable cost brokers have to deploy their understanding of the insurance market and the strength of their relations with insurers apart from enjoying the confidence of the underwriters to accept a particular risk.
Analysis of Claims History
Claim history has a major influence in determining the acceptability and pricing of covering the risk and complete accuracy is needed subsequently to present a correct picture of this vital aspect of the risk presentation. Normally this analysis extends to the level of reviewing every single claims.
Trend Identification and Future Loss Projection
To help the underwriter determine what could be termed a ‘technical’ premium for the risk presented it is important to apply the data as a guide to future outcomes.
Improving Risk-Loss Prevention
A commitment to professional standards of health and safety backed by effective training and monitoring throughout all levels of the business can prevent most workplace injuries and work-related illnesses.