It doesn’t matter whether you are shopping for life insurance, health insurance, or even property insurance, the first step is realizing that insurance policy isn’t just another commodity in the market. As such, it is important that you take adequate measures to choose a broker that will work to protect your interest.
This article will help you learn some tips on how to find the right insurance broker.
Know Whether You Want to Deal With an Agent or Broker
Maybe you are not aware but a broker is different from an agent. And knowing the difference between the two will help you make a better decision.
While both insurance brokers and agents are similar in many regards, they also have their differences.
Insurance brokers are mostly independent representative s or consultants acting on behalf of a client. Brokers do no sign binding contracts with insurance providers. So while they act in your best interest, they do not have the authority to bind policies without the insurers asking an insurance provider to issue an insurance binder.
An agent, on the other hand, is a representation of an insurer. Insurance agents sign binding agreements with insurance providers. This allows agents some binding authority without approval from the insurer. Insurance agents work on a commission basis.
Conduct Background Checks
After deciding between an agent or a broker, you will need to carry out some research to shortlist some candidates or brokerage firms for screening. You can also get a shortlist based on referrals from friends and business associates that have used insurance brokers in the past.
Most insurance providers and brokers maintain a website. Going through the “about us” section will help you understand a company’s corporate culture, employees, and work ethics.
Carrying out background check will also help you learn about the clients that they have worked with in the past and how satisfied they were.
By the time you are through with this, you should be able to eliminate some brokers or agents from your list. Leaving you with a lesser number of brokers or agents.
Interview the Shortlisted Candidate
After the background checks and shortlisting, the next step is to interview the brokers or agents. During the interview phase, you should ask the insurance broker some important questions to know if his or her firm is familiar with handling the kind of coverage you need.
If there are other important information you were not able to get during the vetting process such as their credentials and professional licenses, you should also endeavor to ask them to provide evidence that they are duly registered.
Lastly, ask the broker the names of the insurance firms that he represents to be sure that the insurer has a stable financial standing.
Choose the Agent that is Right for You
Choosing the right insurance broker can be a challenging task involving several vetting processes.
However, bearing in mind that insurance policy isn’t something you change at will, it is important that you go through the stress once and for all.
At Nexus Group, we offer a composite suite of insurance, savings, and investment products to both corporate and individual clients from a range of international and domestic product providers.