The importance of using an insurance broker

In an ever changing world, and with different generations all having different ways in which they prefer doing  business, one thing  hasn’t changed much over the years – and that is the need for good, professional advice.

Unfortunately, over the past few years, in order to position themselves in the market, direct insurers have portrayed Insurance brokers as an expensive link in the chain between client and Insurer. This cannot be further from the truth. It can be said that if you are a client with simple needs, then perhaps a direct insurer is the place for you. But before you decide, perhaps have a look at the benefits and importance of using an insurance broker and see whether the benefits suit your needs.

The benefits of using a broker:

  • With a broker, you get personalised service.
  • An Insurance Broker can save you time and money.
  • They are qualified to analyse your risks and to advise you accordingly.
  • Insurance can be complicated, so a broker is there to assess your situation and shop around for the right insurance product to meet your specific needs. That may mean placing some of your risks with various Insurers to get the best cover possible.
  • Brokers can even, under certain circumstances, arrange insurance cover that has been tailored for your individual needs.
  • Brokers assist you with your claims preparation and claims settlements – they advocate for their clients and ensure that they get the best possible settlement.
  • A broker acts on behalf of the client, not the insurer.
  • Brokers typically have experience on a wide range of products and services across the market which results in the client being presented with comparisons, without having to shop around themselves.

Accountability

In order to advise clients and to sell insurance in South Africa, Insurance brokers are required to register with the Financial Sector Conduct Authority (FSCA), and to remain “Fit and Proper” at all times. This means that brokers are constantly subjected to audits and checks throughout the year to ensure they remain accountable for their actions. Should your chosen broker not perform to the levels you expect, there are various, easily accessible organisations to report them to that will investigate at no cost to you, the customer.

Ongoing advice and support

Our role as your broker does not end once we have arranged your insurance. Apart from being there to assist you when the inevitable happens i.e. at claims stage, a broker also has a role in ensuring that your covers remain relative to your personal situation. Should your needs change your policy needs to be changed accordingly. Your broker will contact you at least once a year to either meet with you or to do a telephonic needs analysis update. It is also their responsibility to bring to your attention any new products that are in the market that may suit your needs.

Should you want to engage with a professional broker, or simply to find out the benefits of using a broker as opposed to dealing direct, then contact Insurance Zone so that we can refer you to one of our authorised brokers in your area.

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