Definition of Insurance Broker
If you want insurance but are
confused about how to obtain suitable insurance products and insurance
companies to opt for your risk, it is better to use the services of an
insurance broker. The service is available for free, without having to
pay for consulting fees or costs.
Not many people know about the
insurance broker profession, many say that if we use an insurance broker
than we have to pay brokerage fees which will result in larger
insurance premium must be paid when compared with the insured to deal
directly with the insurance company the insurance broker is not only an
intermediary between the insured and insurance companies, but also
provide consulting services for the insured and the insurer will also
help the insured to choose a safe and reputable insurance companies that
fit ......
The insurance broker will help the insured to choose
insurance safe. The insured will get insurance consultancy; competitive
products and appropriate insurance premiums, not only that, the
insurance broker will also handle claims if no claims occurred a few
days. Than again, they do not take any fee at all for the insured.
Obviously this is very helpful, because the insured often face
difficulties in managing insurance claims.
Then from where the insurance brokerage company get paid?
Brokerage
revenues derived from the insurance company that has been selected by
the insured, which is of course the broker's advice. Brokers function
did not change as a marketing officer for the insurance company, so
marketing costs, survey and administration are included in the premium
part of the broker.
There are several components of the cost in
the premium cost of the components, namely the Prime premium costs,
overhead costs such as marketing costs, surveys and studies, and reserve
costs. Because the broker function equal to marketing, the costs become
part of the broker marketing costs, administrative costs and surveys.
The
insurance company also greatly aided by the insurance broker services.
In addition to offering marketing services, they also collect the
premium from the insured. By using the services of insurance brokers,
insurance companies can economize human resources and can be optimized
for the development of its main business, including product development.
"That's why insurance companies are happy to pay for the service
broker.
With the convenience offered by the insurance broker, the
business will have progress and promise for the future. The existence
of insurance broker services will be accepted by the insurance companies
and governments.
Most of the insurance brokerage service users
still come from the corporate sector, while for retail majority still
prefer to call the insurance company directly without brokers.
But
this brokerage service will certainly expand to advance, other more
insurance brokerage service users do not have to pay any fee broker
service. In addition, the business will expand as a business broker does
not take into account the risk
