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The Role of an Insurance Broker
Working together as a team is crucial in understanding the needs of a client - Bob Logan
An insurance broker has a fiduciary duty to act in the best interests of their client and provide sound practical advice which is independent of any insurance company's influence.
An insurance broker is similar to an accountant or lawyer who provides impartial professional advice, based on years of training, education and experience.
As with everything in life the cheapest is not necessarily the best. When arranging insurance it is easy to take short cuts and look for the cheapest, without considering policy wordings, insurance companies financial stability and their claims paying history. Often a wider policy wording does not cost much extra.
A professional insurance broker deals with many insurers and has access to different types of policy wordings. They act for their clients and help them to decide what risks to insure, what types of cover are best and how much it should cost. They can also consider if there are other ways that the risk can be transferred such as self insuring and other non traditional insurance products. In many cases the insurance broker is most valuable in the event of a claim.
Broking is a hands on role requiring a combination of technical knowledge, business, communication, people and practical skills.
Until recently, insurance brokers have learnt their trade through practical experience. Now they have dedicated tertiary courses and continuing professional development to lift the level and quality of insurance broking.