Insurance Articles And News

Insurance Brokers

With Aggregator sites appealing to the end customer, primarily because when push comes to shove, they are sold as being easier to deal with. The role of the Insurance Broker has not surprisingly come into question.

The assumption is that the Insurance Broker in effect get in the way of two principals and adds cost to the customers final bill. He/she there to cream off a commission that can be saved by going direct, so why handicap myself and pay over the necessary odds simply to furnish the lifestyle of the Broker.

Brokers go into business like anyone would to see a return on their money, and as with any business some succeed and many fall by the wayside.

At the last count there were some fifteen thousand insurance brokers in the UK, when put against sixty or so million people that's approximately four thousand clients per broker. As we all know many firms have huge numbers of Clients and many a lot less, the question a broker is always up against is: "Why should I use you when I can do it cheaper myself?"

But that can be said for any service provider, be they a builder, painter, electrician or even to some degree a solicitor to name but a few professions.

In an open and free economy, its every ones right to chose or not choose, who they want and what they hope to pay. The internet has changed everyone's expectations and we all want a fast delivery of everything, but as time has shown in some areas it works brilliantly and in others it has been of little benefit.

Yes you can buy some insurance online but the internet is not quite the panacea we expect with insurance unless it is pretty basic cover needed.

Brokers are not pariahs or blood sucking individuals they are there to make that link between the Client and Insurer more effective by going through with the Client exactly what their 'demands and needs' are and comparing the on screen and off screen market prices. Something by definition a computer can't do.

We all think buying insurance is a piece of cake and that it can be done - as per the TV adverts - in 30 seconds. In reality the end calculation can take less than that, but filling in questionnaires in order to establish the right level risk appropriate for the Client is unavoidable and to suggest otherwise is really being economic with the truth by those who suggest as much.

Today supermarkets commoditisation of literally everything in order for you to spend your money with them, has set a precedent that anything can be returned like a can of beans.

Insurance too, has been commoditised mostly by the same end suppliers under the auspices of 'white labelling' (the same supplier using another trading name giving the suggestion of competition when in fact there is nothing of the sort taking place), with the end result being that people think there are endless suppliers which there are not.

For sure anyone can get low cost insurance but that has to come with the handicap that cover, through 'exemptions' will be dramatically reduced or the excess you commit to pay prior to the insurer paying out will be raised!. It is the natural quid pro quo thinking with Insurance companies.

By 'excess' I am referring to the 'voluntary' excess not the 'compulsory' one levied by the Insurance company there is a significant difference and that needs to be made clear. Much presentation concerns the excess and how you can save money by increasing your excess, but it only refers to the voluntary one not the compulsory one.

Web sites are naturally very cagey about this distinction and the Financial Services Authority in London has sought to extract more clarity from multi contributor websites so the Client knows what they are actually paying for, but I can assure you for all the heralded changes to websites this specific point will be lost in the small print and it is integral to knowing what you are really paying for when you seek to but cover for your home, car, business or any insured product.

By definition extra details made clear would take a lot of the glitter away from the cheap insurance notion. The Insurance Broker however doesn't get off so easily, they have above all else to deal either or face on by phone with the Client, and have the 'duty of care' to uphold.

A Broker has no inanimate opt out box you tick before they discuss the insurance you want so if you tick 'Agree' you can be seen to know all the pitfalls and most importantly have no comeback, when in fact you should have ticked 'Disagree'. But then you would not have got the quote you had spent 10 minutes filling out would you?

The internet has great functionality but it still won't explain why one company is better than another in taking on your risk. Administration after the event is also important and the Broker can steer you clear of some insurers who have poor back office administration.

We all want an easy and hassle free life and above all else want things explained in clear English so we understand. Frequently asked questions never seem to have the one you want to ask and dealing with a computer, unless you have the patience of a saint can be a nightmare.

The Broker is there to help make the part you don't understand easier to comprehend as any user would expect but never seems to get offered. Why because all too many suppliers seem to thrive on making things only clear to rocket scientists and not you and me, unless of course you are a rocket scientist in which case I apologise!

Finally please remember with insurance you must be sure to check what you are not covered for as much as what you are. This is where the advice and service of the Insurance Broker can be positively invaluable over and above saving you a lot of time.