Despite what direct insurers may say, it’s not necessarily cheaper to cut out the middleman. You will need advice if you want the right cover at the right price for the right circumstances. Insurance brokers bring you significantly added value compared to what you would get from direct providers and your premiums are not likely to be higher. This is especially relevant when your insurance requirements don’t fit within standard solutions.
EASIER AND QUICKER
In contrast to dealing with call-centre agents, who are required to tick boxes, and with whom you can never build any sort of ongoing relationship, with a broker you are likely to be asked more probing questions, ensuring that your business is correctly risk-rated and that the policy you choose is appropriate to your business needs. A broker can combine multiple cover types and indemnity levels saving you from multiple patched policies.
TRANSPARENT AND SUSTAINABLE
The regulatory changes in the financial services industry over the last decade ensure that you can expect a transparent ongoing professional level of service from a broker. Brokers must disclose their commissions, remuneration and fees. Insurers who use brokers pay ongoing commission on premiums, as opposed to those who pay call-centre agents a once-off commission, so it’s in the broker’s interests that cover matches your requirements, risk, and pocket.
The FAIS Act tightly regulates brokers, giving you protection and a guaranteed level of service, including recourse to the Insurance Ombudsman. Under the FAIS Act, your broker must:
- Make reasonable enquiries to assess your needs, objectives, and circumstances
- Disclose his/ her fees (commission and broker’s fee), and any projected increase in either the fees or policy premiums
- Provide you with a policy schedule, containing the identity of the insurer and all relevant terms and conditions
- Fully explain the terms and conditions of the policy with you
- Inform you of any changes to the conditions of your policy and if your policy has been canceled
AFTER-SALES SERVICE
The real value of a broker is demonstrated when you need to claim or update your cover. Brokers are familiar with your unique circumstances and can guide you through the processes and procedures ensuring a hassle-free solution. Brokers receive ongoing professional education, through regular conferences and workshops, which help them to identify pitfalls or notify you of new legislation. Relationship managers from the insurance companies regularly call on brokers to advise on new services and cover options ensuring you are up to date with latest risks and solutions.
firstEquity Group member brokers are experts in their field, providing advice and bespoke solutions to meet your unique requirements. They offer a wide range of insurance products including commercial, household, wildlife and livestock, professional liability, reinsurance, tourism insurance, credit and political risk, cyber insurance, and diverse specialist insurance products. Contact our brokerages to find the solution to your insurance needs.
